Gensol Engineering share price extends losses to 10-day, touches 5% lower circuit

Gensol Engineering share price has been on a consistent decline, marking its 10th consecutive session of losses, with a drop of over 50%. Gensol Engineering share price today fell by 5%, reaching a 52-week low following the announcement that the company's promoters have divested a 2.37% stake in the EPC firm. In its exchange filing, the company announced its plan to invest ₹28.99 crore by converting warrants into equity in the firm.

The company disclosed in its exchange filing that, in line with the promoter group's steadfast support for the company's growth path, warrants will be converted into 4,43,934 equity shares at a price of ₹871 per share.

This move underscores the promoters' strong dedication to Gensol's strategic advancement in renewable energy and electric mobility, ensuring the company is adequately financed. This investment follows a recent strategic choice made by the promoters to release liquidity through an equity stake sale, with the proceeds being reinvested into the company.

Gensol Engineering announced a consolidated profit after tax of ₹18 crore in the December quarter, reflecting a rise of over 6% due to higher revenue. In the same period last year, the company recorded a PAT of ₹17 crore, according to their statement. The firm's total revenue surged by 30%, reaching ₹345 crore compared to ₹266 crore in the same quarter the previous year. Additionally, its EBITDA for the quarter was ₹63 crore, up from ₹53 crore a year prior.

Technical Views

Gensol Engineering share price today opened at ₹293.60 apiece on the BSE, the stock touched an intraday low of ₹289.90 per share, and an intraday high of ₹297 apiece.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities highlighted that Gensol Engineering share price has broken its IPO low of 436, plunging with a massive 3,151% surge in volume against its 50-day average. The stock remains weak and in a clear downtrend.

With no historical support at these levels, Fibonacci extension analysis suggests a probable downside target of 205. This level could act as support, but given the heavy selling pressure, investors should remain cautious. Until signs of reversal emerge, Gensol’s bearish momentum may continue, explained Jain.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Gensol Engineering share prices are under tremendous pressure, with prices sharply fallen from levels of 550 to 290 in March almost down more than 45% , the counter has also started moving in lower circuits, and ideally any bounce should be used to exit. 330 is resistance whereas 250 is next support.

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