Solar penny stock under Rs 70 hit the upper circuit after receiving an order worth Rs 172 crore from Jodhpur Vidyut Vitran Nigam Ltd (JDVVNL)

Silgo Retail Ltd has been awarded a Letter of Award (LOA) from Jodhpur Vidyut Vitran Nigam Limited (JDVVNL) for a project under the PM-KUSUM Component A Scheme. The company is tasked with the design, survey, supply, installation, testing, commissioning, operation, and maintenance for 25 years of grid-connected solar power plants. These plants, with a combined capacity of 48.5 MW, will be set up at 25 different sites. The contract also includes the associated 11 KV lines to connect the plants to various 33/11 KV sub-stations and the installation of a remote monitoring system (RMS).

The project is valued at approximately Rs 172 crore, which includes GST, and is expected to be completed during the financial year 2026-27. The solar power plants will have a final levelized tariff of Rs 3.03 per unit for one site and Rs 2.60 per unit for the remaining 24 sites. The total annual electricity generation is projected to be 79,200,000 units, which is expected to generate a total annual revenue of Rs 20,79,84,000 for the company. This contract represents a significant domestic order for Silgo Retail Ltd in the renewable energy sector.

About the Company

Silgo Retail Limited, a company incorporated in 2016 and based in Jaipur, India, is primarily engaged in the business of designing, manufacturing, and trading silver jewellery. While the company's manufacturing facility is in Jaipur and its product portfolio includes various silver items like rings, necklaces, and bangles, it has recently decided to expand its business operations by entering the renewable energy sector. This strategic move will allow the company to pursue a wide range of activities, including setting up and maintaining solar, wind, and hybrid energy plants, engaging in energy trading, and developing energy-related infrastructure and technologies. The new business focus will enable Silgo Retail to undertake turnkey projects, provide EPC services, and engage in carbon credit trading, diversifying its portfolio beyond its traditional jewellery business.

On Tuesday, shares of Silgo Retail Ltd hit a 5 per cent upper circuit to Rs 69.11 per share from its previous closing of Rs 65.82 per share. The stock’s 52-week high is Rs 79 per share and its 52-week low of Rs 26.21 per share. The company has a market cap of over Rs 160 crore and the stock has given multibagger returns of 164 per cent from its 52-week low of Rs 26.21 per share.

Disclaimer: The article is for informational purposes only and not investment advice.