Renewable energy stock jumps after signing MoU worth ₹36,000 Cr with Botswana Govt. 

Synopsis: The Government of Botswana signed an MoU with a leading Indian renewables company for the development of large scale renewable energy, energy storage, and power transmission projects.

Shares of a small cap renewables company was in the spotlight soon after the company involved in the development of utility scale wind power generation infrastructure signed an MoU with the Government of Botswana to collaborate on large-scale renewable energy generation, storage, and power transmission projects. With a market cap of Rs 2,260 cr K.P. Energy Ltd saw its stock hit an intraday high of Rs 346.7 which is 2.8 percent higher than the previous close of Rs 337.

What the News?

KP Group has signed a landmark MoU with the Government of Botswana to develop large-scale renewable energy, energy storage, and power transmission projects. This contract aligns well with the country’s mission of achieving a net-zero target by 2030. 

With an estimated investment of Rs 36,000 crore (Dollar 4 billion), this initiative aims to add nearly 5 GW of solar and wind capacity, upgrade high-voltage transmission lines, and even enhance cross-border power interconnections for regional clean energy exports. 

KP Group will be handling feasibility studies, project design, financing, construction, commissioning, and O&M (Operations & Maintenance). The collaboration also includes 30 annual scholarships for the Botswanan citizens that could boost local skills and position the country as a clean energy hub.

Previously the company had also informed about its MoU with Inox Wind Limited in order to develop 2.5 GW of Wind Projects across multiple states in India. As of the latest quarter the company informed that the company has 2.2 WG of orders in its current order book, with about 3 GW of  multi-year orders in the pipeline.

Business & Financial Overview

K.P. Energy Limited was established in 2010 and is part of the KP Group of Surat and is headquartered in the same city mentioned. The company specializes in utility-scale wind power generation, with its core activities include wind farm siting, land acquisition and permitting, engineering, procurement, construction, and commissioning (EPCC) of wind projects, as well as developing balance of plant (BoP) infrastructure. 

In the latest quarter the company saw a YoY revenue growth of 51 percent, going from Rs 199 Cr in Q2FY25 to Rs 301 Cr in Q2FY26, while the QoQ went up by 37 percent from Rs 219 Cr in Q1FY25. The YoY and QoQ Net Profits growth is at 44 percent, going from Rs 25 Cr in Q2FY25 and Q1FY26 to Rs 36 Cr in Q2FY26. 

The company has its 5 year Profit CAGR at 153 percent while the 3 years number stands at 88 percent. While the company’s 5 year sales CAGR is at 66 percent. Also the company’s stock has given a compounded return of 95 percent in 5 years. K.P. Energy Limited also has an ROE of 45 percent and a ROCE of 41.7 percent.

Written by Adithya Menon

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