This Consulting Services Company Gained 1250% In Last 1-Year: Check Details

At a time when there has been witnessed just slight gains on the Nifty to the tune of over 5% in the 1-year period, this small cap high priced stock from the consulting services sector has galloped by a sizable 1250% in the last 1-year. The stock is also a multibagger on a YTD basis with return at 629%. The company we are talking about here is Gensol Engineering.

As part of its consulting business Gensol provides concept to commissioning solar advisory engineering review detailed engineering construction supervision quality control and technical due diligence services for projects in India and abroad.

Financials of the company

The company's financials are reporting an improvement with Fy22 revenue at Rs. 162.28 cr. n comparison to Rs. 64.60 in the previous fiscal year. Also, the net income during the period has more than trebled to Rs.11.09 crore from Rs. 3.18 crore in Fy21.

Fundamentals of the company

In the company, promoters are known to increase stake in the firm QoQ, with March ended stake at 71.17%. On the flip side, there is noted a decline in net cash flow as well as an increase in debt. From debt to equity ratio of 0.06 in Fy 21, the debt to equity has inched way higher to 1.71 as in 2022. This is quite worrisome.

Also, on the positive side which can be taken as the opportunity, the stock's last traded price is higher than the second resistance.

 

 

Latest news on the company

The company informed of buying a stake in a US-based EV manufacturing start up-release by the company said, "inform you that the Company has today 7th July 2022 signed a term sheet to pick up majority stake in a US- based electric vehicle manufacturing startup which is subject to the terms and conditions of the term sheet approval he terms and conditions of the term sheet approval of Board of Directors of the Company and subject to due diligence clearance including FEMA Act. The majority stake acquisition of this startup will allow Gensol to have an in-house manufacturing facility for capturing the highly explosive growth of the EV market keeping in mind that the case for immediate electrification of consumer transport is undeniable.Alongside this investment is a very momentous change for Gensol as it will help increase its topline in phase-1 of manufacturing to the tune of INR 500-600 crores during FY-24".