GENSOL ENGINEERING LIMITED

Started in 2012, Gensol Engineering Limited is a part of Gensol group of companies, which offer EPC and solar advisory services. The company is engaged in providing technical due diligence, detailed engineering, quality control, construction supervision, and other consulting services for solar projects across many countries, including India. Being a one-stop solution for a value chain of the solar industry, it provides advisory services to leading project developers, leading institutions, solar EPC companies, and government policymakers. Under EPC business, the company manages turnkey engineering, construction and procurement contracts, internationally, with a team of 180+ engineers. Collectively, Gensol has erected solar power plants of over 188 MW capacity on ground and rooftops so far. With International reach, it provides consulting services to Kenya, Ukraine, Oman, Gabon, Sierra Leone, Nepal, Afghanistan, Indonesia, Philippines and Chad. It is also working on an EPC project in Egypt. In March 2015, the company has entered into a Joint Venture with Solarig N-Gage SA, Spain, which operates, constructs and owns photovoltaic solar parks. Gensol has a subsidiary named Gensun Renewable Pvt Ltd established in 2018 to work on power production generation & sales related activities under RESCO business. Recently, Gensol Engineering has become a technical consultant to NTPC for EPC Vendors for Ground Mounted, Floating & Rooftop Solar PV Projects for two years from 25 Sept 2019 to 24th Sept 2021. As per the financial performance front, Gensol has posted turnover/net profits of Rs. 62.32 cr. / Rs. 1.19 cr. (FY17), Rs. 69.64 cr. / Rs. 5.34 cr. and Rs. 83.85 cr. / Rs. 6.50 cr. (FY19). Company has trade receivables around 22.55 Cr which is around 27%.    For last three fiscals, Gensol has posted an average EPS of Rs. 8.65 and an average RoNW of 68.47%. The issue is priced at a P/BV of 3.85 on the basis of its NAV of Rs. 21.58 as on 31.03.19. If we take FY19 consolidated earnings and attribute it on fully diluted equity post issue, then asking P/E is around 9.3, which is fully priced in current market scenario. Comparison with peer companies is shown in above table. On BRLM's front, for Pantomath Capital Advisors Private Limited this is the 58th IPO in last three fiscals and from last 10 IPOs, nine opened above issue price with 0.05% to 11% premium on the day of listing. As of now, from last 10 IPOs, 7 are trading below issue price and remaining above issue price. ( As on 26.09.19 ) Company has shown good results and consistent growth, RoNW 49.81% and issue looks reasonably priced. With focus of Government on renewable energy to reduce pollution, new solar power plants are increasing and hence future of this company looks good. Performance of BRLM is poor after listing, So we give NEUTRAL rating to this SME IPO.

• 1 Mr. Anmol Singh Jaggi
• 2 Mr. Puneet Singh Jaggi