Open Your Zerodha Demat Account & Access Free Advisory From Capito Investments
Zodiac Energy Ltd Analysis
ZODIAC ENERGY LTD ANALYSIS -
🔶Zodiac Energy Ltd.:
🔹The company is the leading installer of residential rooftop solar systems in India and is also actively involved in the installation of solar power generation plants.
🔹It offers services including design, procurement, installation, testing, commissioning (EPC) & ongoing operation & maintenance for:
🔹Residential rooftop systems
🔹Rooftop systems for commercial & industrial applications
🔹Ground-mounted captive solar projects.
🔶Key Metrics:
🔹M Cap: ₹422 Cr
🔹CMP: ₹289
🔹P/E Ratio: 83.6
🔹Debt to equity: 1.02
🔹ROCE: 11.2%
🔹OPM: 7.22%
🔹3 Years Sales Growth: 26.4%
🔶Key Highlights:
🔹Solar EPC Portfolio: Exceeds 130 MW.
🔹Solar Experience: Over 10 years.
🔹Grid Connections: More than 11,000 solar power systems.
🔹Management Projects: Developed solar projects over 450 MW.
🔹Co-Generation Systems: Installed over 150 MW of diesel/gas systems
🔶Services Offered:
🔹Solar Photovoltaic (PV) System: The company offers various solar solutions, including grid-connected PV systems, residential rooftop PV systems, off-grid PV systems, solar pumps, and integrated PV systems, using high-quality components.
🔹Concentrated Solar Thermal: Concentrated solar power is a way of generating energy by concentrating sunlight using mirrors. CSP systems focus sunlight on a receiver, converting it to heat & then use the heat to produce steam, which drives a turbine for electricity generation.
🔹Diesel/Gas based Captive / Co-generation Power Plants: It is a facility that provides a localized power source to meet the energy needs of users, such as industrial plants, large offices, and data centers, is known as a "captive power plant" or "captive power facility.
🔹Building Integrated Photovoltaic System: BIPV systems function as both building materials and power generators, contributing to reduced fossil fuel use and ozone-depleting gas emissions.
🔹Emerging Technologies: The company has ventured into emerging technologies including Electric Vehicles (EVs), Energy Storage solutions, Solar Water Desalination, Lithium-ion (LI) batteries, and EV chargers.
🔶MOU:
🔹The company signed an MOU at the Vibrant Gujarat Investment Summit 2024, committing to invest ₹3000.00 Cr in Gujarat over the next 5 years.
🔹This investment will be used to establish solar power plants in various modes, aligning with Gujarat's RE policy 2023.
🔶Key Milestones:
🔹1992: Zodiac Gensets Pvt. Ltd.
🔹2012: Forayed into solar energy spectrum.
🔹2017: Zodiac Energy Limited maiden IPO and listing on NSE
🔹2019: Partnered with European "white solar" company Solaxess, entered BIPV, became top residential rooftop installer in India with 5500+ installations
🔹2021: Expanded BIPV in Gujarat, entered residential market in South India
🔶Client Concentration:
🔹The company has implemented solar power projects for notable clients, including Sun-Edison India, Adani Group, and other prestigious organizations such as the RBI and IOCL.
🔹Additional clients include Amul, BoB, BSNL, Charusat, GSC Bank, ISRO, L&T, SBI, Toyota, and Vodafone.
🔹The company has served 11,000+ customers with over 130 MW of solar installations.
🔶Q2FY24 Financial Highlights:
🔹Revenue from Operations at ₹34.41 Cr⬆️30% YOY.
🔹Operating Profit at ₹3.02 Cr⬆️25% YOY.
🔹PAT at ₹1.48 Cr⬇️10% YOY.
🔹Basic EPS at ₹1.01
🔶Shareholding Pattern:
🔹Promoters: 72.86%
🔹Retailers: 27.14%
🔶Industry Overview:
🔹India ranks fourth globally in terms of renewable energy installed capacity.
🔹The Prime Minister of India announced at COP26 that India aims to achieve net-zero carbon emissions by 2070.
🔹And plans to have more than 50% of its installed power plant capacity from renewable sources by 2030.
🔹The Union Budget shows strong support for the renewable energy sector, with ₹7,327 Crore allocated specifically for solar power projects.
🔶Growth Drivers:
🔹Demand for energy: Rising incomes and improving living standards will drive the demand for appliances, air conditioners and vehicles.
🔹Climate change: To tackle environmental challenges, the Indian government implemented energy-efficient initiatives.
🔹Cost effective: Renewable energy is cheaper than traditional sources, with no procurement costs and easy recovery of installation costs through declining transmission expenses.
🔶Management Commentary:
🔹The company is expanding into the solar energy sector nationwide, starting with operations in Lucknow, Uttar Pradesh, and Pune, Maharashtra, with plans to open more branches across the nation in the near future.
🔹The company has plans to enter the green hydrogen value chain in the near future.
🔹The company also intends to venture into the energy storage business to fully leverage its activities in the field.
⚡️Disclaimer: The above data should not be considered as a Buy or Sell recommendation. The analysis has been done for educational and learning purpose only. We are not Sebi - Registered.
🙏
-REGARDS-
Kirthee Bane
