Websol-Energy

Solar Power Surge: Websol Energy Hits ₹1,774, Records Stunning 40% Rise in December!

 

Websol Energy Systems Limited (WESL) stock price hit a new all-time high of ₹ 1,774.50 during December 20’s intra-day trading on BSE and rose 05%. In December 2024, the share has had an impressive increase of 40%. Starting in trading at ₹84.45 on July 20, 2023, WESL shares have risen by a mind-blowing 2,000%. These impressive figures are due to a favourable business model and strategic development in the solar photovoltaic segment.

 

Robust Financial Performance

 

In the first half of the year FY 25 (April to September 2024), WESL reported a profit after tax of ₹64.88 crore. This performance is a noteworthy turnaround compared to the ₹8.94 crore net loss in H1FY24 and the ₹120.96 crore net loss recorded for the entire FY24. The company has well capitalized on the favourable domestic solar market situation hence the existence of cells more focused in the Domestic Content Requirement (DCR) market. WESL operations have also attracted attention from overseas purchasers, aiming for a balanced domestic and export mix as production capacity grows.

 

Major Capacity Expansions

 

WESL has recently commissioned the 600 MWP Mono PERC bifacial solar cell manufacturing plant and 550 MWP module manufacturing plant. It entered commercial operation in late 2024 for a 600 MWP facility and on August 1, 2024, for a 550 MWP module line. These expansions are strategic to meet the demand-supply needs of the solar energy market as well as consider the Indian government’s vision of the future energy mix.

 

India’s Solar Energy Growth

 

India’s total renewable power generation potential – solar as well as wind, along with other such forms – is expected to reach 132 GW only in 2023 and the figure is estimated to go up nearly to 170 GW by 2025. Solar energy is projected to cause this growth, with setups predicted to rise from 72 GW in 2023 to 104 GW in 2025.

The country has an installation target of 20GW in the newly launched FY25. It has added 17GW of solar in the FY24. Given this growth, WESL is well placed to unlock this growth through government production-linked incentives and favourable auction regulations.

On September 30, 2024, WESL, had a total of 42.2 million outstanding equity shares. Promoters had a majority share with 27.71 % of the stake while the retail investor and non-resident Indian investors had a total holding was 62.58 % and 7.91%, respectively. The company expects to have more business opportunities within the renewable energy market, especially in the synergy of storage with both solar systems, as well as the new ideas of floating PV modules.