🔥 KP Energy Ltd – The ₹939 Cr Wind Whisperer That Outsmarted the Big Boys 🔥

🔥 KP Energy Ltd – The ₹939 Cr Wind Whisperer That Outsmarted the Big Boys 🔥

🧠 At a Glance

K.P. Energy is not your regular power generator. It’s the full-stack Wind Power D2C agency — scouting land, laying cables, erecting turbines, commissioning wind farms, and now even running a few of them. With ROE of 46.2%, a 5-year profit CAGR of 154%, and a moat built on execution + EPC + ownership, this ₹3,368 Cr stock has outpaced the big guys — quietly and profitably. “NTPC is the elephant, Adani is the dragon… and this tiny Gujarati tornado is the ninja.”


1️⃣ Hook: “What If a Wind Farm Company Behaved Like a SaaS Startup?”

K.P. Energy’s secret sauce?

  • 💡 97% of revenue is from EPCC services — a capital-light, high-margin wind project business
  • 💰 Margins have expanded from 14% to 19% in 3 years
  • ⚡ Now scaling its IPP portfolio too — 45.7 MW operational
  • 📈 Stock is up 143% in 3 years
  • 📞 Biggies like Senvion, Inox Wind, and now Delta Electronics India are clients/partners

In short: they build wind farms for others, with others, and for themselves


2️⃣ WTF Do They Even Do?

Full-Stack Wind Project Builder:

  • 🎯 EPCC – Engineering, Procurement, Construction & Commissioning of wind farms (core)
  • 🧱 Balance of Plant (BoP) infrastructure: roads, substations, grid connectivity
  • 🌬️ IPP (Independent Power Producer): Owns 45.7 MW of operating assets
  • ☀️ Bonus: A few MW of solar & hybrid capacity on the side

📍Operations are largely Gujarat-centric. But a 1.8 GW MoU with Madhya Pradesh is underway.


3️⃣ Financials – Wind + Profit = Tornado

FYRevenue (₹ Cr)PAT (₹ Cr)EPS (₹)OPMROE
FY217260.9125%13%
FY22250182.7414%24%
FY23438446.5816%37%
FY24471588.7418%42%
FY2593911517.2919%46% ✅

🧠 5-Year Sales CAGR: 66%
🧠 5-Year Profit CAGR: 154%
💸 Profit doubled in FY25, despite heavy IPP investments


4️⃣ Valuation – Is It Windy or Worth It?

MetricValue
CMP₹503
Market Cap₹3,368 Cr
TTM EPS₹17.29
P/E29.2x
Book Value₹47
P/B10.7x
ROE46.2% 🔥

🎯 Forward EPS (FY26E) ≈ ₹22
🎯 Reasonable PE band for infra EPC: 18x–22x
👉 Fair Value Range = ₹395 – ₹485

It’s fairly priced right now — not a steal, but not in bubble land either.


5️⃣ What’s Cooking – MoUs, Megawatts & Moves

  • 🛠️ 1 GW Order from Senvion (May 2025)
  • ISTS connectivity for 100 MW wind project in Gujarat (May 2025)
  • 💽 MoU with Delta Electronics India for:
    • EV Infra
    • Green Hydrogen
    • Solar Inverters
  • 🌱 Signed 1.8 GW MoU with Madhya Pradesh Govt (Feb 2025)
  • 🚀 IPP Portfolio now 45.7 MW (growing fast)

They’re not just EPC now — they’re platformizing wind.


6️⃣ Balance Sheet – Leverage is Blowing, But for a Reason

FYNet WorthDebtTotal Assets
FY21₹55 Cr₹33 Cr₹265 Cr
FY23₹117 Cr₹49 Cr₹346 Cr
FY25₹280 Cr₹252 Cr₹1,169 Cr
  • 🔺 Leverage increased as they build wind assets
  • 🔋 But operating cash flow is strong: ₹162 Cr in FY25
  • 💡 Debt is productive, not desperate

7️⃣ Cash Flow – Finally, Free Cash Flow?

FYCFOCapex (CFI)FCF
FY23₹28 Cr-₹21 Cr₹7 Cr
FY24₹33 Cr-₹70 Cr-₹37 Cr ❌
FY25₹162 Cr-₹241 Cr-₹79 Cr ❌

Heavy capex = investing in own wind farms. Not scary, but worth tracking.


8️⃣ Ratios – Sexy or Stressy?

MetricValue
ROE46.2% ✅
ROCE42.3% ✅
OPM19% ✅
Debtor Days126 ❌
Inventory Days126 ❌
CCC71 days (manageable)

📦 EPC biz is naturally working-cap heavy, but profit velocity is keeping up.


9️⃣ P&L Breakdown – Quarterly Surge Alert

QuarterRevenue (₹ Cr)PAT (₹ Cr)EPSOPM
Mar 2024₹207₹25₹3.7315%
Jun 2024₹127₹18₹2.7318%
Sep 2024₹199₹25₹3.7420%
Dec 2024₹212₹26₹3.9620%
Mar 2025₹401₹46₹6.8718%

Steady, predictable, and trending UP.


🔟 Peer Comparison – Wind vs Goliaths

CompanyP/EROEOPMMcap
KP Energy29x46%19%₹3,368 Cr
JSW Energy50x7.4%44%₹89,000 Cr
NTPC14x13.6%28.8%₹3.25 L Cr
Adani Green97x14.6%79%₹1.6 L Cr

KP Energy is small, sharp, and ROE-rich — but doesn’t (yet) enjoy the regulatory/political clout of giants.


1️⃣1️⃣ Shareholding – Institutions Finally Noticing

ShareholderFY22FY25
Promoters59.6%45.0% ❌
FIIs0.0%0.80% ✅
DIIs0.0%0.91% ✅
Public40.4%53.27% ✅

Promoters trimmed 21% stake in 3 years, but retail + institutions absorbed it well.


1️⃣2️⃣ EduInvesting Verdict™

K.P. Energy is India’s most underrated wind power platform — quietly compounding profits while the biggies battle on headlines.

✅ High ROE, high growth
✅ Clean project execution + expanding IPP book
❗ Cash flow negative due to aggressive infra investment
❗ Promoter stake cut = needs watching

🎯 Fair Value Range: ₹395 – ₹485
(based on 18–22x forward EPS of ₹22)


💬 Think of KP Energy as the “Zoho” of wind infra: bootstrapped, efficient, and boringly profitable. Until someone wakes up and says — hey, this could be a ₹10,000 Cr stock in 3 years.

✍️ Written by Prashant | 📅 July 6, 2025

Tags: KP Energy, Wind EPC, Renewable Infra India, IPP Business, Senvion, Delta Electronics India, Wind Power Stocks, High ROE Stocks, Gujarat Infra, EduInvesting

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