EKI Energy touches $1 billion market cap, first listed SME company to get valuation

In just 9 months, the amount of investors in the company has increased 67 times. The company’s clients include Indian Railways, NTPC, NHPC, Adani Group.

EKI Energy’s market cap crosses $1 billion

In the year 2021, the momentum in the shares of EKI Energy, a company that earned investors a lot, continues in 2022 as well. Today the company achieved a new historical level when the company achieved a valuation of one billion dollars with the stock reaching a new high. The company has achieved the level of valuation in just 9 months. The company is the first S&P BSE SME listed company to have achieved this valuation.

Shares slipped as they reached new record levels

The stock of EKI Energy closed with a decline of 5 percent in the stock market today. However, during trading, the stock reached its record levels of 10946. At this height, the company’s market cap crossed Rs 7500 crore. Rupee is below the level of 75 against the dollar i.e. the company’s market cap has crossed the level of one billion dollars during trading. However, profit-booking was seen in the stock at record high and the stock closed at 9903 level while the market cap. With a fall of about Rs 800 crore, it came to the level of 6800.

Amount increased 67 times in 9 months

The stock of EKI Energy has grown 67 times in just 9 months. The stock was at a level below 150 in early April. The stock is seeing gains since July. At the same time, the pace of its growth intensified in December. At present, the stock has reached near the level of 10 thousand. That is, every 10 thousand rupees invested in it in April has now increased to more than Rs 6.75 lakh. The total market cap of the company is currently close to Rs 68 hundred crores. At the same time, the free float market cap is below Rs 2 thousand crores. The special thing is that the market cap of the company was below 100 crores at the time of listing.

Why did the stock rise

Royal Dutch Shell has announced the formation of a joint venture with EKI Energy, in which it will invest $160 million over the next 5 years. The joint venture will provide nature based solutions to companies in India. The joint venture plans to get 115 million carbon credits in the next 5 years. In fact, Shell is emphasizing on expanding green energy in India. EKI will hold 51 per cent stake in the joint venture. The rest will be with Shell. EKI Energy was formed in 2008. The company is in the carbon credit business. At present, the company has 2500 clients in 40 countries. This includes World Bank, Indian Railways, NTPC, Adani Group, Soft Bank, NHPC.

How is the company’s performance

The promoter’s holding in Indore’s Green Consultancy Company is 73.37 percent. FII holds 5.36 percent stake. At the same time, the company has a debt of only Rs 1.4 crore against cash of Rs 15.6 crore. The sales growth of the company has been 189 percent. At the same time, the profit growth of one year is 314 percent.

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