Shares of a renewable energy company and one of the leading providers of sustainable solutions, aligned with the government and World Bank’s vision for renewable energy expansion and the Green Hydrogen mission, moved up by nearly 2.6 percent on NSE during Thursday’s trading session.
The stock is currently trading at a discount, and here are some factors that could benefit retail investors considering investing in the company.
Price Movement
With a market cap of Rs. 2,193.4 crores, the shares of Oriana Power Limited hit an intraday high at Rs. 1,165.95, up by around 2.6 percent, compared to its previous closing price of Rs. 1,136.2.
The stock hit its 52-week high at Rs. 2,984 on 14th June 2024, and compared to its closing price of Rs. 1,079.5, the stock is trading at a discount of nearly 64 percent.
Order Book & Vision 2030
Oriana Power continues to expand its footprint in the EPC and RESCO sectors, with a robust order book exceeding 500 MW and a business pipeline surpassing 1,500 MW.
The company aims to achieve over 6 GW in EPC capacity and more than 2.5 GW in IPP capacity by 2030. With a targeted annual growth rate of 25 percent, Oriana Power is committed to significantly increasing its CBG production.
Additionally, the company plans to establish itself as a major player in Battery Energy Storage Systems (BESS), aiming for a total capacity of 3.5 GWh by 2030.
The company targets to establish a giga factory, with an initial 500 MW operational capacity set for 2026, followed by an additional 500 MW planned in 2027.
Key Developments in H1 FY25
Oriana Power successfully expanded its operational portfolio, completing and delivering projects of more than 50 MW.
The company strengthened its position in the clean energy sector through a strategic partnership with a US-based firm to set up an electrolyser Gigafactory. This initiative reinforces its presence across the
entire clean energy value chain, spanning solar, Battery Energy Storage Systems (BESS), green hydrogen, and e-fuels. Oriana Power signed an MoU with a hydrogen off-taker for 100 percent of the green hydrogen production, amounting to 350 kg of hydrogen per day.
The company has submitted an Expression of Interest (EOI) to a state government for subsidy support in a 225 TPD e-Methanol project. Discussions are in advanced stages with off-takers in the US and Europe for the supply of e-Methanol and Green Ammonia.
Oriana Power entered into an MoU with one of India’s largest school chains to convert ~800 buses to green hydrogen-powered vehicles across its nationwide network. A milestone 2.7 MW floating solar plant was successfully developed at the Daroli Limestone mines.
The company commissioned a 4.5 MW solar power project at India’s largest copper deposit in Malanjhkhand (Madhya Pradesh), a project recognized by the Ministry of Mines as a landmark initiative.
Additionally, Oriana Power’s 100 MW solar park project in Haryana has secured 50 MW connectivity and project registration approvals from state authorities.
Financial Performance
Oriana Power experienced a significant growth in its revenue from operations, showing a year-on-year increase of around 462 percent from Rs. 64 crores in H1 FY24 to Rs. 359.5 crores in H1 FY25.
Similarly, its net profit increased during the same period from Rs. 5.7 crores to Rs. 48.6 crores, indicating an impressive rise of nearly 752.6 percent YoY.
Key growth strategies
- Expansion of IPP portfolio: Increasing solar power capacity to reduce emissions and align with renewable energy targets.
- Sternghteing E-fuels capability: Plans are underway to set up e-Methanol and Green Ammonia production facilities.
- Strategic land acquisition & development: By acquiring land near PE substations, Oriana Power aims to optimize project development and minimize transmission losses.
- Diversification into Emerging Sectors: The company is scaling up BESS and Compressed Bio-gas (CBG), targeting these sectors to contribute 10-20 percent of the next year’s revenue.
- Focus on High-Growth Regions in India: Oriana Power is prioritizing regions with favorable renewable energy policies, high solar irradiance, and strong industrial bases, such as Haryana and Andhra Pradesh.
About the Company
Oriana Power Limited operates across various segments of the power industry, encompassing power generation, engineering, procurement, and construction (EPC) of power projects, as well as operation and maintenance services.
Additionally, the company offers consultancy expertise in manufacturing, operations, and maintenance of power projects.
Moreover, the company undertakes activities akin to a General Electric power supply firm, involving the construction, installation, and maintenance of essential power infrastructure such as stations, cables, and lines.
Written by Shivani Singh
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