GK Energy IPO Review
G K Energy IPO Review coveres details of business model, Financial performance, balancesheet details and ratio analysis and the our verdict.
🕗 Last Update: 17 September 2025, 6.00 AM
Business Model
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Incorporated in 2008, GK Energy provides end-to-end EPC services for solar-powered agricultural water pump systems under the Government’s PM-KUSUM scheme.
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It follows an asset-light model, sourcing panels and pumps under its brand from specialized vendors.
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Strong network with 13 leased warehouses across 3 states and 60 employees as of Nov-24.
Financial Performance
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Revenue Growth: From ₹70.63 cr (FY22) to ₹423.63 cr (H1FY25 annualized), showing rapid scaling.
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Profitability: PAT surged from ₹1.56 cr (FY22) to ₹51.08 cr (Sep-24). PAT margin at 12.12% and EBITDA margin at 18.24% indicate efficient cost management.
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Net Worth: Expanded from ₹9.12 cr (FY22) to ₹107.03 cr (Sep-24).
Balance Sheet & Ratios
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Borrowings: Increased from ₹24.38 cr (FY22) to ₹202.94 cr (Sep-24), reflecting higher working capital needs.
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ROE 63.71% & ROCE 55.65% – very attractive returns.
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Debt/Equity at 0.74 – moderate leverage but rising trend needs monitoring.
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Valuations: EPS ₹7.86, P/E 19.47x, P/B 24.17x – indicate expensive valuation compared to sector peers.
Strengths
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High scalability under government-backed scheme.
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Asset-light model with strong return ratios.
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Rising demand for renewable-powered agriculture solutions.
Risks
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Heavy dependence on PM-KUSUM scheme allocations.
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Rising borrowings and stretched working capital cycle.
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High valuations at IPO pricing.
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