Smallcap stock Gensol Engineering Ltd., once a promising player in India’s renewable energy sector, has experienced a dramatic decline in its stock value, shedding over 95% of investor wealth in the past year. This precipitous fall has left many retail investors grappling with significant losses.
Gensol Engineering Stock Performance
Over the last year, Gensol Engineering’s stock price has plummeted by approximately 95%, contrasting sharply with the broader market’s positive performance. The company’s stock is currently trading well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
The stock hit its 52-week high of ₹921.75, hit in September 2024 but is currently trading around 45.48.
While the stock has lost 82 percent in the last 6 months, it was positive, up 8.5 percent in the last 1 month.
However, in the last 5 years, the FII-backed stock has given multibagger returns, soaring 128 percent.
Underlying Causes of the Decline
Gensol Engineering’s collapse stemmed from multiple factors. Allegations of fund diversion by promoters for personal use raised serious governance concerns, eroding investor trust. Regulatory authorities barred promoters from accessing the securities market, heightening uncertainty.
Mounting debt led to insolvency proceedings, signaling severe financial distress, while audit scrutiny cast doubt on the company’s past disclosures. Together, these issues created a perfect storm of weak governance, regulatory clampdowns, and financial mismanagement, driving the stock down over 95 percent in a year and leaving retail investors with heavy losses.
FII-backed small-cap stock
As mentioned above, the BSE-listed stock is under the radar of FIIs as well. FIIs Century India Opportunity Fund Pc and Nova Global Opportunities Fund Pcc – Touchstone have a shareholding in this small-cap stock. By the end of the March 2025 quarter, FIIs held 4.66 percent stake or 17,91,584 shares in the firm.
Gensol Engineering’s precipitous stock decline serves as a stark reminder of the risks associated with investing in companies facing financial mismanagement and regulatory scrutiny. Retail investors are advised to exercise caution and conduct thorough due diligence before making investment decisions.
Gensol Engineering Limited, founded in 2007 and based in Ahmedabad, provides renewable energy solutions in India and abroad. It operates across EPC, Lease, and EV Manufacturing segments, offering solar EPC projects, advisory, O&M, energy storage, and tracking systems. The company also generates solar power and manufactures and leases electric vehicles and equipment.
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