Stock to Buy

Heavy buying and consecutive upper circuits: Is there any heat left in this small-cap stock?

heavy buying and consecutive upper circuits

Volume refers to the number of shares of a particular stock which have changed hands in a specific period of time, mainly one day. Stocks having higher volumes means there are a greater number of investors who are interested in purchasing or selling them. Therefore, heavy buying and consecutive upper circuits indicate optimism around a particular stock and investors can expect healthy returns in a short duration of time. 

If a particular stock which has a high trading volume continues to rise, it usually means that there is a strong buying pressure. This can be concluded because it means that demand of investors has been pushing the prices to higher highs. One the other hand, if the price continues to fall with high trading volume, it suggests that the stock is experiencing a lot of selling pressure. Usually different analysts tend to draw different conclusions. If a stock continues to rise on low trading volume, it may mean that there is an absence of sellers. And if a particular stock continues to decline on low volume, it may mean that there are very few bids for that stock. Therefore, what’s better than a stock has been seeing heavy buying and consecutive upper circuits? Everything said and done, investors are continuously on a look out for the share which are experiencing heavy buying and consecutive upper circuits. 

Gensol Engineering Limited-heavy buying and consecutive upper circuits

Founded in 2012, this company forms part of Gensol group of companies, that provides engineering, procurement, and construction (EPC) services for the purposes of development of solar power plants. It has a dedicated and strong team of more than 240 employees, and the company excels in managing turnkey projects on global scale. Over past couple of years, it has installed ground-mounted and rooftop solar power plants which have a combined capacity of more than 590 MW. Focus of the company has always been on expanding its operations, and thus, the company has established a cutting-edge EV manufacturing facility in Pune, India. This facility assists in the development and production of electric 3 wheelers and 4 wheelers.

In 1Q24, the company’s revenue came in at INR1,517 million, exhibiting a rise of 47% year-over-year from INR1,029 million in 1Q23. Its EBITDA came in at INR437 million, up 179% in comparison to INR157 million in 1Q23. EBITDA margin in 1Q24 was 28.8%, up 1,362 basis points from 15.2% in 1Q23. Profit after Tax (PAT) of the company was at INR102 million, up 2% year-over-year. 

The company seems to be well-positioned and beyond ready to capitalise on increased demand for renewable energy & electric mobility which India needs in its quest to be climate neutral by 2070. 

Strong order book and healthy pipeline of projects of Gensol Engineering Limited reinforces its position as trusted partner and force multiplier for the creation of high-quality solar assets. Expectations are there that it can sustain its positive performance in upcoming times as it continues to invest in its capabilities and expand its global footprint. Apart from this, its recent listing on main board of NSE exhibits, in every imaginable dimension, the company’s increased commitment of transparency and growth.

The company has announced that it, in normal course of business, maiden 2 turnkey international Solar Engineering, Procurement, and Construction projects in Dubai with Dubai Government Workshop Warehouse along with Dubai Police. This aggregates to capacity of 14.08 MWp. These projects have cumulative order value of ~INR101.6 crores, excluding the associated taxes. As a result of these order wins, the company should be able to have access to greater market which is full of dynamism, vibrancy and untapped potential for renewable energy solutions which have the capability to deliver favourable impacts on both Indian and UAE markets. 

Gensol Engineering Limited should be able to see strong growth over upcoming years and this growth should stem from brighter outlook for solar business and EV business. A critical factor which continues to support growth in solar power market in India is increased investments in renewable energy. Low carbon emissions coming from renewable sources and increased concerns about environmental protection continue to help adoption of renewable sources of energy. Collectively, these factors have led to an increase in investments in renewable energy throughout the world. 

Global energy mix has changed tremendously over past 2 decades. Improved energy efficiency and reducing cost of renewable energy continued to play a critical role in balancing energy supply and demand. Talking about the EV industry, logistics and last mile delivery markets grew significantly due to immediate acceleration in 2020 as a result of lock-downs and safety concerns. Compact EVs are the preferred choice of all logistic providers. The company’s cargo vehicle provides unparalleled ease of access in low footprint design with one of the lowest cost per mile. This makes perfect for not only Indian customers, but customers who are present in North America and in European markets.

In upcoming years, EV market is expected to be supported by favorable TCO (Total Cost of Ownership), government policy push, charging infrastructure growth, battery manufacturing advancements, etc.  

In the months of July, the company has received LOI from OREDA for offering 300 EVs with fleet management service on operating lease for 5 years. Gensol Engineering Limited’s participation in this tender was on behalf of its subsidiary, Gensol EV Lease Private Limited to offer EVs on lease to OREDA. The company was declared a successful bidder in this tendering process. Cumulative billing value of this tender comes out to be INR1,15,00,00,000, exclusive of taxes. 

To sum up

Since the stock of Gensol Engineering Limited has seen heavy buying and consecutive upper circuits, it appears that this stock has been on investors’ and traders’ watchlist. On Friday, 1st September 2023, the stock price of the company was locked in at the upper circuit of 5% and the price closed at INR1,920 per share. 

In just 6 months, this stock has delivered a phenomenal return of ~41.4%. This means an investment of just INR1,00,000 would have become INR1,41,400. It has seen heavy buying and consecutive upper circuits in the past few sessions because of which this stock has turned many heads. 

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CEO & Editor
I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as,, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.

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