Vikran Engineering's stock surged 9.5% on Monday, reaching Rs 110.35 after the company won contracts for solar projects totaling 45.75 MW in Madhya Pradesh.
Why the Stock Jumped
The market reacted positively to the new solar contracts because they add steady, long‑term revenue to the company's earnings. The shares have also been on a short‑term uptrend, gaining about 18% in the last week and 15% over the past two weeks.
Details of the Solar Projects
- Location: Vidisha district, Madhya Pradesh.
- Capacity: 45.75 MW AC, to be supplied to Madhya Pradesh Power Management Company Limited (MPPMCL).
- Scheme: Part of the PM KUSUM‑C programme, implemented under the Surya Mitra Krishi Feeders Scheme, which encourages solarisation of agricultural feeders.
- Role: Vikran Engineering will act as the Renewable Power Generator (RPG) for the grid‑connected solar PV plants.
- Power Purchase Agreement (PPA): 25‑year contract with tariffs of Rs 2.75‑2.80 per kilowatt‑hour.
What It Means for Investors
These contracts give Vikran Engineering a predictable cash flow for the next 25 years, which can improve its financial stability and growth prospects. The projects also expand the company's footprint in both decentralised and utility‑scale solar segments, aligning with India's push for renewable energy.
Disclaimer
Remember, this is just an overview of recent developments, not a recommendation to buy or sell. Do your own research and consider your risk tolerance before making any investment decisions.