KPI Green Energy Share Price Target: 2023, 2024, 2025, 2030

By Dotsmovie Jan10,2024

KPI Green Energy Share Price Target: Welcome to this in-depth analysis of KPI Green Energy share price targets. Today, we’ll provide a comprehensive review of KPI Green Energy’s operations, profit drivers, growth avenues and all key aspects to understand the company’s future share price movement.

After a thorough analysis of the stock fundamentals, we’ll share our price target estimates so you can evaluate if this is the right stock to buy now for long-term gains. This article discusses KPI Green Energy’s potential share price in 2023, 2024, 2025 and 2030.

kpi green energy share price
kpi green energy share price

But before jumping into the price forecasts, let’s first understand what KPI Green Energy does, its financials, business outlook and so on. This background will help you make a well-informed investment decision.

KPI Green Energy – Company Background

KPI Green Energy is part of the KP Group founded in 2008. The company operates in the solar power generation industry with operations across India.

It mainly works in two business verticals:

Independent Power Producer (IPP): KPI Green sells solar power directly to commercial and industrial consumers like factories, malls, industries etc. This segment contributes 47% to overall revenues.

Captive Power Producer: Here, KPI Green provides end-to-end solar solutions including design, equipment supply, engineering, construction etc. This accounts for 40% of total revenues.

The management aims to develop new solar parks to drive growth. They have already secured debt funding for expansion plans.

KPI Green Energy – Business Model

As mentioned above, KPI Green Energy operates through two main business segments:

A. Independent Power Producer (IPP)

  • KPI Green sets up solar power units and sells the electricity generated directly to industrial and commercial clients instead of routing through the grid
  • Customers include manufacturers, warehouses, multiplexes etc. with high power needs
  • IPP contributes 47% of the total revenues as of FY22

B. Captive Solar Solutions

  • Here KPI Green offers end-to-end solar power solutions for customers planning onsite/rooftop solar units
  • Services offered include design, engineering, equipment supply, construction, operations and maintenance
  • This segment accounts for 40% of the company’s total revenues

The company has delivered robust growth in recent years. Revenues have surged at a CAGR of 53% over FY17-FY22 – from ₹260 crores to ₹2,200 crores.

Going forward, the strong project pipeline and expansion plans augur well for future growth.

Financial Analysis of KPI Green Energy

Here are some key financial metrics of KPI Green Energy:

  • Market Cap: ₹3,270 Crore
  • Share Price (28 Dec 2022): ₹904
  • 52 Week High/Low: ₹960/₹345
  • P/E Ratio: 27.0
  • Book Value per Share: ₹71.4
  • Dividend Yield: 0.17%
  • ROCE: 24.7%
  • ROE: 53.4%
  • Face Value: ₹10.0
  • Price to Book Ratio: 12.7
  • Debt: ₹676 Crore
  • Debt/Equity Ratio: 2.62

As evident, KPI Green Energy has maintained a healthy balance sheet so far. The surging revenues and stable margins have translated into rising profits and returns for investors.

The company does have high debt levels currently owing to expansion spending. However the projects commissioned should start generating cash flows to pay debts.

Overall, KPI Green seems to be poised for robust long-term growth ahead.

KPI Green Energy Shareholding Pattern

Promoters hold a 74% stake in the company as of Sep 2022. Public and institutional investors account for the remaining 26% shareholding.

Growth Drivers for KPI Green Energy

The prospects look bright for KPI Green Energy across both business verticals:

A. Independent Power Producer (IPP)

  • Rising power costs to spur higher demand for cheap solar power from industrial and commercial clients
  • Favorable regulatory policies push businesses to switch to green energy
  • KPI Green’s strong track record is likely to result in more customer wins

B. Captive Solar Power Solutions

  • captive solar power adoption is expected to gain traction over the next decade
  • KPI Green well positioned to capitalize given its diverse project portfolio across segments

Furthermore, the company aims to enhance capacities across IPP and captive power solutions. The debt funding raised recently will finance these expansion plans.

KPI Green Energy Share Price Target 2023

KPI Green Energy stock has surged over 150% in the last one year, vastly outperforming broader indices. Even now, the stock seems to have strong upside potential ahead.

Given the high double-digit revenue and profit growth, improving return ratios and sector tailwinds, we expect KPI Green Energy share price to reach Rs. 1,070 – Rs. 1,140 in 2023 – marking a 15-20% upside from current levels.

KPI Green Energy Share Price Target 2025

In the medium term, KPI Green Energy should be able to sustain a healthy growth trajectory given the structural drivers.

Assuming earnings growth stays strong at over 20% CAGR driven by capacity expansion and stable margins, we see scope for further upside.

Our KPI Green Energy share price target for 2025 stands at Rs. 1,600 – Rs. 1,800 – implying a CAGR of 20-25% over the next 3 years.

KPI Green Energy Share Price Target 2030

Taking a long-term view, the solar power market and KPI Green’s competitive position therein could evolve dramatically over the coming decade.

But given the green energy adoption tailwinds globally, the government’s aggressive renewable power targets and KPI’s early mover advantage, we foresee immense growth potential.

KPI Green Energy’s share price has the potential to reach Rs. 3,400 – Rs. 3,700 by 2030 – a 4x growth over current levels.

Right Time to Buy KPI Green Energy Shares

Despite the sharp run-up, KPI Green Energy stock seems to have room for further upsides from a long-term perspective.

Given the huge untapped market, structural sector tailwinds, improving financials and reasonable valuations, this is a good time to buy the stock.

Investors could accumulate KPI Green shares on dips for multi-bagger returns over the next 5-10 years.

KPI Green Energy’s Improving Profits

Over the past three years, KPI Green Energy’s earnings per share has witnessed volatility with ups and downs. But the 154% EPS growth last year signals a positive turnaround.

Such a sharp improvement in the bottom line indicates the company’s strengthening profitability. This forms a good base for the next growth phase.

The robust topline growth paired with sound margins further underlines the earnings potential ahead. As operations scale up, KPI Green’s profit growth momentum should continue going forward.

Conclusion – Is KPI Green Energy a Good Buy?

In summary, KPI Green Energy looks well-placed to capitalize on India’s exponential solar power market potential over the coming years.

Despite some leverage currently, the financial profile looks healthy to support future capacity expansion plans.

Given the structural growth drivers, diversified presence across IPP and captive solar solutions, execution track record and reasonable valuations, we believe KPI Green Energy stock investment offers an attractive risk-reward proposition.

Investors could consider buying the stock on dips for outsized gains over the long run.

We hope this detailed analysis on KPI Green share price targets for 2023, 2025 and 2030 has been helpful for you to make an informed investment decision. Let us know your feedback or any other questions in the comments section below.

Frequently Asked Questions (FAQs)

What is the current share price of KPI Green Energy?

The current share price of KPI Green Energy (as of 28 Dec 2022) is ₹904.

What is the 52-week high/low for KPI Green Energy stock?

Over the past year, KPI Green Energy’s share price touched a high of ₹960 and a low of ₹345.

What is the market capitalization of the company?

KPI Green Energy presently has a market capitalization of around ₹3,270 crores.

Who are the key investors of KPI Green Energy?

Promoters hold a 74% stake while public shareholders and institutions own the remaining 26%.

Does KPI Green Energy pay dividends?

KPI Green Energy has consistently paid dividends over the past 5 years. The current dividend yield is around 0.17%.

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