Oriana Power – SME play on Renewable Energy

Thanks Sulabh for starting thread on Oriana Power. It was long pending as it is one of the most promising renewable energy (solar, hydrogen, CBG) microcaps company.

Few Pointers:
1/ FY24 Numbers: As per crisil report, orderbook in March’24 was 900crs+. They are expected to report revenues of 350crs+ in FY24 (350crs is minimum, they can report 375-400crs as per my expectations), this is 3x vs FY23

2/ Order book: Current order book should be around 1100crs. They should keep getting new orders around the year specially now as they have successfully completed some big projects in last FY (like Coal India etc). Orderbook should be significantly more by FY25 end

3/ Valuations: It is expected that they should report 1100-1200crs revenues and 110-130crs PAT in FY25 (3x growth vs FY24). This translates to 19-22x FY25PE. Other competitors Waaree Renewables and KPI Green are trading at 50x FY25PE. Oriana is expected to show highest growth among the big players and trading cheapest.

3/ Solar Parks: They are currently setting up 350MW solar parks across three states. Concall should provide more details on these

• Rajasthan – 100MW (total 250MW)
• Maharastra – 50MW
• UP – 50MW

4/ International Expansion: They are also expanding to Middle East market and participating in Dubai Energy exhibition on 16th-18th April. This market is expected to be a big contributor for them in next 1-2 days as only handful companies have international experience.

5/ Both green hydrogen (electrolysers + EPC) and CBG (EPC) should be a big growth driver for the company apart from solar EPC.

6/ Management Bandwidth // Strategic Mentor: The have this unique management combination that there are three young promoters who are expert in their own areas: Rupal (Sales/BD); Anirudh (Investor Relations/Strategy); Praveen (Operations)

Also they have Prashant Jain (ex MD JSW Energy) as strategic investor and mentor who has very deep understanding of the renewable energy market.

Thanks

Disclosure: This is just a research note. This is not a buy//sell recommendation