Surana Solar shining bright

The sun seems to be shining bright today on Surana Solar and this can be attributed directly to Rakesh Jhunjhunwala. He bought 2.56 lakh shares in the company via a bulk deal on NSE at an average price of Rs.53.74/share.

This company though not very often heard about on the street is a well-known name as manufacturer of solar energy systems with focus on solar photovoltaic modules. It is now planning to get into manufacture of LED bulbs and tubes with an initial capacity of 10,00,000 units with an established entity in the market.

This company is a part of the Hyderabad-based Surana Group and hopes to achieve a turnover of Rs 40 crore in the second year of operation from the new LED business. It had ended FY15 with a 178% jump in net profit at Rs.8 crore though sales was flat at Rs.125 crore.

As at 31st March 2015, promoter holding was at 74.99%, FIIs held 0.62% and DII at 0.05%. Market cap stands at Rs.289 crore.

The stock is currently up over 10% at Rs.59 levels with an intra day high at Rs.63.10. Its 52-week high stands at Rs.83.80.