🧠 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
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM | ROE |
|---|---|---|---|---|---|
| FY21 | 72 | 6 | 0.91 | 25% | 13% |
| FY22 | 250 | 18 | 2.74 | 14% | 24% |
| FY23 | 438 | 44 | 6.58 | 16% | 37% |
| FY24 | 471 | 58 | 8.74 | 18% | 42% |
| FY25 | 939 | 115 | 17.29 | 19% | 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?
| Metric | Value |
|---|---|
| CMP | ₹503 |
| Market Cap | ₹3,368 Cr |
| TTM EPS | ₹17.29 |
| P/E | 29.2x |
| Book Value | ₹47 |
| P/B | 10.7x |
| ROE | 46.2% 🔥 |
🎯 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
| FY | Net Worth | Debt | Total 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?
| FY | CFO | Capex (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?
| Metric | Value |
|---|---|
| ROE | 46.2% ✅ |
| ROCE | 42.3% ✅ |
| OPM | 19% ✅ |
| Debtor Days | 126 ❌ |
| Inventory Days | 126 ❌ |
| CCC | 71 days (manageable) |
📦 EPC biz is naturally working-cap heavy, but profit velocity is keeping up.
9️⃣ P&L Breakdown – Quarterly Surge Alert
| Quarter | Revenue (₹ Cr) | PAT (₹ Cr) | EPS | OPM |
|---|---|---|---|---|
| Mar 2024 | ₹207 | ₹25 | ₹3.73 | 15% |
| Jun 2024 | ₹127 | ₹18 | ₹2.73 | 18% |
| Sep 2024 | ₹199 | ₹25 | ₹3.74 | 20% |
| Dec 2024 | ₹212 | ₹26 | ₹3.96 | 20% |
| Mar 2025 | ₹401 | ₹46 | ₹6.87 | 18% |
Steady, predictable, and trending UP.
🔟 Peer Comparison – Wind vs Goliaths
| Company | P/E | ROE | OPM | Mcap |
|---|---|---|---|---|
| KP Energy | 29x | 46% | 19% | ₹3,368 Cr |
| JSW Energy | 50x | 7.4% | 44% | ₹89,000 Cr |
| NTPC | 14x | 13.6% | 28.8% | ₹3.25 L Cr |
| Adani Green | 97x | 14.6% | 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
| Shareholder | FY22 | FY25 |
|---|---|---|
| Promoters | 59.6% | 45.0% ❌ |
| FIIs | 0.0% | 0.80% ✅ |
| DIIs | 0.0% | 0.91% ✅ |
| Public | 40.4% | 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
