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At the time when newly-listed companies on the main bourses have been delivering robust returns to investors, select firms which debut on the BSE SME platform in the recent past have also changed the fortunes of investors in just a few months. Take this: with a rally of 1,638%, shares of EKI Energy Services have jumped to Rs 1,738.40 against the issue price of Rs 102. This means, Rs 1,00,000 invested in the IPO has now turned into over Rs 17 lakh at present. Shares of the company got listed on bourses on April 7 at Rs 140 per share.

Other SME companies like Suratwwala Business Group, Suumaya Corporation and Veer Global Infraconstruction have gained 346%, 201% and 185% from their respective issue prices.

Coming back to EKI Energy Services, investor Mukul Mahavir Agrawal held 1,08,000 shares or a 1.57% stake in the company as of June 30. With a net investment of over Rs 1,888 crore, Agrawal has more than a 1% stake in at least 40 companies on Dalal Street.

Performance

For the year ended March 2021, EKI Energy Services reported over 314% year-on-year growth in net profit at Rs 18.69 crore against Rs 4.51 crore a year ago. On the other hand, total income from operations increased 189% YoY to Rs 191.01 crore.

Founded in 2011, EKI Energy Services Limited is one of the leading companies in the carbon credit industry in India with an established global footprint. It delivers client services in the areas of a climate change advisory, carbon credits offsetting, ISO consultancy and electrical safety audits.

EKI Energy also offers services to both governments and private sector industries such as power generation, waste management and airports.

Management view

Commenting on the business performance, Chairman and Managing Director, Manish Dabkara said: “In line with global carbon credit markets, EKI Energy reported a stellar performance across all business segments during the year. The company reported revenue growth of 189% while EBITDA increased by over four times to Rs 25 crore. EBITDA margins have continuously improved over time and during the year expanded by 4% to 13.3%. With effective working capital management and strong business fundamentals, the company has maintained a net cash positive balance sheet.

“EKI Energy is the first climate change related company to be listed in India. Going forward with growing demand for climate control solutions, increasing awareness for carbon emissions reduction and various environment protection policies, demand for global climate control services is expected to increase significantly. With innovative business solutions and strong fundamentals, EKI Energy is confident in maintaining growth momentum and creating value for its shareholders,” said Dabkara.

(Disclaimer: Stocks mentioned in the article are for information purpose only. Consult your financial advisor before taking any position)