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GKENERGY IPO

GK Energy Limited
Start Date19-09-2025
Application Timing10am-5pm
Price Range₹145 - ₹153
Min Qty98
Min. Investment₹14210
Listing Date26-09-2025
Close Date23-09-2025

About GK Energy Limited

Incorporated in 2008, GK Energy Limited is engaged in providing engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems under Component B of the Central Government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) Scheme. The company offers end-to-end solutions including survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pump systems.

GK Energy operates on an asset-light business model, sourcing solar panels, pumps, and other components under its own brand “GK Energy” from specialized vendors. As of August 2025, the company has 12 warehouses across three states and employs a localized workforce of 90 employees and 709 workmen, enabling efficient operations in five states.

For the financial year ending March 31, 2025, the company reported total income of Rs. 1,099.18 crore and profit after tax (PAT) of Rs. 133.21 crore. GK Energy’s financial strength is supported by robust return ratios, with ROE of 63.71% and ROCE of 55.65%.

Why To Invest in GK Energy Limited

Strong Government Support: The company operates under the PM-KUSUM scheme, ensuring policy support and steady demand for solar-powered pump installations.

Robust Financial Performance: GK Energy has reported strong profitability with a PAT margin of 12.12% and EBITDA margin of 18.24%, reflecting operational efficiency.

Asset-Light Model: By sourcing key components from specialized vendors, the company reduces capex burden and improves scalability.

Expanding Market Reach: With warehouses and manpower spread across multiple states, GK Energy is well-positioned for geographical expansion.

Healthy Valuations: Despite dilution post-IPO, the company maintains a strong market capitalization of Rs. 3103.10 crore, with reasonable P/E levels compared to peers.

Financial Table
Period Ended 31 Mar 2025
Assets583.62
Total Income1,099.18
Profit After Tax133.21
EBITDA199.69
NET Worth209.09
Reserves and Surplus175.07
Total Borrowing217.79
Strengths And Risks
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Strong Position in Solar-Powered Agricultural Pump Systems: GK Energy holds a leading position in implementing solar-powered agricultural pump systems under the PM-KUSUM scheme, ensuring a steady demand backed by government initiatives.
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Comprehensive End-to-End Solutions: The company provides complete EPC services, from survey and design to installation and maintenance, giving it a strong execution capability compared to peers.
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Impressive Return Ratios: Financial performance is backed by robust return metrics, with ROE at 63.71% and ROCE at 55.65%, highlighting efficient capital utilization.
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Asset-Light Business Model: By sourcing solar panels and pumps from specialized vendors, GK Energy operates an asset-light model, allowing flexibility, scalability, and lower capital expenditure.
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Wide Geographical Presence: With warehouses and manpower spread across multiple states, the company has developed a diversified presence, enabling it to operate efficiently across five Indian states.
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Dependence on Government Policies: A significant portion of GK Energy’s business relies on the PM-KUSUM scheme. Any changes in government policy or budget allocation may directly impact its growth.
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High Promoter Shareholding: Even after the IPO, promoter holding will remain at 78.64%, which may limit liquidity and restrict broader market participation.
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Industry Competition: The company faces strong competition from other EPC players in the renewable energy sector, which could affect its market share and margins.
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Seasonal Fluctuations in Earnings: Since the company primarily caters to the agricultural sector, its earnings are vulnerable to seasonal demand variations and weather conditions.
FAQs
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