 "This solar photovoltaic company stock has skyrocketed 2,000% in 17 months")
Websol Energy Systems (WESL) shares hit a new high of Rs 1,774.50, gaining 5 per cent on the BSE in Friday’s intra-day trade on a strong business outlook. Thus far in the month of December, the stock of the company engaged in the business of manufacturing solar photo-voltaic cells and modules, has surged 40 per cent. In 17 months, it has skyrocketed 2,000 per cent from the level of Rs 84.45 on July 20, 2023.
WESL has been in the business of producing and selling solar photovoltaic cells and modules since 1994. The company’s manufacturing facility is situated in the Falta Special Economic Zone in West Bengal, India. The company’s products are utilised in commercial and industrial settings in India and internationally.
For the first six months (April to September) of the financial year 2024-25 (H1FY25), WESL had reported robust earnings by posting profit after tax of Rs 64.88 crore. The company had posted a net loss of Rs 8.94 crore in H1FY24 and a loss of Rs 120.96 crore in the entire FY24.
Currently, owing to a booming domestic market, the company is selling all its cell production in the Domestic Content Requirement (DCR) market. However, it has also received interest from various foreign buyers and intends to maintain a good mix going forward and as its capacity expands.
The company has expanded by way of commissioning a 600 MWP Mono PERC (Passivated Emitter and Rear Cell) bifacial solar cell manufacturing facility and a 550 MWP module manufacturing facility. The commercial production of the first phase of 600 MWP Mono PERC bifacial solar cell project was started in the last quarter of 2024 and the 550 MWP module line on August 1, 2024.
The rationale behind the capacity addition is to advance the company’s commitment for expansion of solar energy and help bridge the huge demand and supply gap prevalent in the DCR market currently.
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WESL, in its FY24 annual report, said that the penetration of renewable energy is expected to grow, increasing efforts in utilising hydrogen as a long-term, seasonal fuel storage solution. Photovoltaic systems are poised to remain the most cost-effective energy resource, despite an 85 per cent reduction in costs over the decades. The industry is anticipated to grow by exploring projects integrating solar and storage, such as floating solar photovoltaic modules, and by introducing community solar projects into new markets.
India’s installed renewable energy capacity, encompassing solar, wind, and other renewable sources, is projected to rise to approximately 170 GW by 2025, up from 132 GW as of 2023. The bulk of this capacity increase could be propelled by solar installations, forecasted to reach 104 GW by 2025, up from 72 GW in 2023. The country added new solar capacity of 17 GW in FY 2023-24 and it is expected to reach 20 GW by FY 2024-25.
The company further said that India’s renewable power capacity is projected to double between 2022 and 2027. Utility-scale solar plants, established through competitive auctions, play a crucial role in the country’s renewable energy expansion. Increasing consumer demand for distributed energy, backed by favourable government policies, has the potential to boost this growth even further.
Domestic PV manufacturing was boosted by the government’s production-linked incentives (PIL) scheme. This boost and market-friendly auction rules for wind farms are further catalyzing growth. By 2032, two-thirds of India’s power generation growth is expected to be driven by solar and wind energy, the company said.
As on September 30, 2024, WESL had a total of 42.2 million outstanding equity shares. Of these, 27.71 per cent stake was held by the promoters. The remaining 72.29 per cent holding are with retail shareholders (62.58 per cent) and non-resident Indians (7.91 per cent), the shareholding pattern data on exchanges showed.