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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Solex Energy Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:13 pm

Market Cap 1,154 Cr.
Current Price 1,442
High / Low1,640/387
Stock P/E132
Book Value 57.8
Dividend Yield0.01 %
ROCE21.3 %
ROE23.2 %
Face Value 10.0
PEG Ratio-11.40

Competitors of Solex Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Honda India Power Products Ltd 3,395 Cr. 3,3483,475/2,10538.0 8010.49 %15.5 %11.5 % 10.0
Industry Average3,395.00 Cr3,348.0038.00801.000.49%15.50%11.50%10.00

Quarterly Result

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Sales857068225735372114193273
Expenses806764215534361913284253
Operating Profit544221129920
OPM %6%5%6%7%3%3%2%9%7%9%7%
Other Income0000000-0311
Interest00101011446
Depreciation00000001444
Profit before tax5331110-14110
Tax %28%22%35%26%31%31%-5%22%29%45%22%
Net Profit3221110-0318
EPS in Rs6.704.924.091.801.600.740.50-0.583.960.9110.01

Last Updated: June 9, 2024, 7:13 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:08 am

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales646341011491388072161234
Expenses64532961411317670150216
Operating Profit012687321118
OPM %5%2%6%6%5%5%4%3%7%8%
Other Income0000000034
Interest0111111168
Depreciation0001100058
Profit before tax0114762146
Tax %29%31%33%28%27%29%29%20%30%
Net Profit0013542134
EPS in Rs1.222.604.096.4010.069.013.401.243.394.87
Dividend Payout %0%0%0%16%0%6%9%12%4%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)200.00%66.67%-20.00%-50.00%-50.00%200.00%
Change in YoY Net Profit Growth (%)0.00%-133.33%-86.67%-30.00%0.00%250.00%

Growth

Compounded Sales Growth
10 Years:%
5 Years:10%
3 Years:5%
TTM:305%
Compounded Profit Growth
10 Years:%
5 Years:-3%
3 Years:-15%
TTM:6600%
Stock Price CAGR
10 Years:%
5 Years:97%
3 Years:150%
1 Year:107%
Return on Equity
10 Years:%
5 Years:12%
3 Years:6%
Last Year:7%

Last Updated: April 13, 2024, 9:22 am

Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1225555888
Reserves0019131719273030
Borrowings44166512196681
Other Liabilities492032474440183768
Total Liabilities915255271717673141188
Fixed Assets022111115558
CWIP-0-0-0-00-0-02410
Investments-0-0-0-0-0-0-0-000
Other Assets81323517070754885129
Total Assets915255271717673141188

Reserves and Borrowings Chart

Solex Energy Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1-4522421
Cash from Investing Activity -0-3-3-1-1-27-47
Cash from Financing Activity -06-2-2-02226
Net Cash Flow1-10-01-2-0

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-4.00-3.001.000.002.002.00-9.00-17.00-55.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days2797518113713614725510568
Inventory Days
Days Payable
Cash Conversion Cycle2797518113713614725510568
Working Capital Days2482920776481172165113
ROCE %23%37%42%34%29%11%4%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Apr 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Promoters70.43%70.43%70.43%70.43%70.43%70.65%43.49%70.65%70.65%70.65%70.65%70.66%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.10%
Public29.57%29.57%29.57%29.57%29.57%29.35%56.51%29.36%29.35%29.35%29.35%28.24%
No. of Shareholders2412252252202142462453083035679171,402

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.923.391.283.399.01
Diluted EPS (Rs.)10.923.391.283.399.01
Cash EPS (Rs.)21.509.061.553.929.67
Book Value[Excl.RevalReserv]/Share (Rs.)57.8047.0343.8047.7344.84
Book Value[Incl.RevalReserv]/Share (Rs.)57.8047.0343.8047.7344.84
Dividend / Share (Rs.)0.000.150.150.300.50
Revenue From Operations / Share (Rs.)457.40202.1490.41161.18279.43
PBDIT / Share (Rs.)38.1317.502.797.3315.61
PBIT / Share (Rs.)27.5611.832.476.8114.95
PBT / Share (Rs.)14.434.811.534.7712.64
Net Profit / Share (Rs.)10.923.391.233.399.01
PBDIT Margin (%)8.338.653.084.545.58
PBIT Margin (%)6.025.852.734.225.35
PBT Margin (%)3.152.381.692.954.52
Net Profit Margin (%)2.381.671.362.103.22
Return on Networth / Equity (%)18.887.202.817.1020.09
Return on Capital Employeed (%)22.7410.963.7210.8227.13
Return On Assets (%)4.121.921.322.216.27
Long Term Debt / Equity (X)1.021.190.370.040.00
Total Debt / Equity (X)2.081.750.600.470.22
Asset Turnover Ratio (%)2.071.500.961.091.94
Current Ratio (X)1.321.532.221.641.60
Quick Ratio (X)0.740.971.561.461.48
Inventory Turnover Ratio (X)6.326.295.149.2321.01
Dividend Payout Ratio (NP) (%)0.004.4224.2914.730.00
Dividend Payout Ratio (CP) (%)0.001.6519.3612.760.00
Earning Retention Ratio (%)0.0095.5875.7185.270.00
Cash Earning Retention Ratio (%)0.0098.3580.6487.240.00
Interest Coverage Ratio (X)2.902.492.973.356.75
Interest Coverage Ratio (Post Tax) (X)1.831.482.322.484.89
Enterprise Value (Cr.)743.97409.41110.4026.4014.19
EV / Net Operating Revenue (X)2.032.531.530.330.10
EV / EBITDA (X)24.3929.2549.517.291.84
MarketCap / Net Operating Revenue (X)1.772.121.260.210.07
Retention Ratios (%)0.0095.5775.7085.260.00
Price / BV (X)14.019.132.610.730.43
Price / Net Operating Revenue (X)1.772.121.260.210.07
EarningsYield0.010.010.010.090.45

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,770.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 22.76% compared to the current price 1442

Intrinsic Value: 1,565.29

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 8.55% compared to the current price ₹1442

Last 5 Year EPS CAGR: -11.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.33%, which is a positive sign.
  2. The company has shown consistent growth in sales (102.10 cr) and profit (3.20 cr) over the years.
  1. The stock has a high average Working Capital Days of 107.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 153.67, which may not be favorable.
  3. The company has higher borrowings (21.90) compared to reserves (15.40), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Solex Energy Ltd:
    1. Net Profit Margin: 2.38%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.74% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 18.88% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.83
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.74
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 132 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: 2.08
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Solex Energy Ltd. is a Public Limited Listed company incorporated on 13/10/2014 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L40106GJ2014PLC081036 and registration number is 081036. Currently company belongs to the Industry of Electric Equipment - General. Company’s Total Operating Revenue is Rs. 72.33 Cr. and Equity Capital is Rs. 8.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - GeneralPlot No. 131/A, Phase 1, Nr. Krimy Industries, Anand Gujarat 388121info@solex.in
http://www.solex.in
Management
NamePosition Held
Mr. Chetan Sureshchandra ShahChairman & Managing Director
Mr. Kalpeshkumar Ramanbhai PatelExecutive Director
Mr. Piyush Kailashchandra ChandakExecutive Director
Mrs. Kiran Ritesh ShahExecutive Director
Mr. Vipul Mulchand ShahNon Executive Director
Mr. Anil RathiNon Executive Director
Mr. Kamlesh Pravin YagnikIndependent Director
Mr. Rajeshbhai Tulsibhai PatelIndependent Director
Mr. Amitkumar D TrivediIndependent Director

FAQ

What is the latest fair value of Solex Energy Ltd?

The latest fair value of Solex Energy Ltd is ₹1770.24.

What is the Market Cap of Solex Energy Ltd?

The Market Cap of Solex Energy Ltd is 1,154 Cr..

What is the current Stock Price of Solex Energy Ltd as on 19 June 2024?

The current stock price of Solex Energy Ltd as on 19 June 2024 is ₹1,442.

What is the High / Low of Solex Energy Ltd stocks in FY 2024?

In FY 2024, the High / Low of Solex Energy Ltd stocks is 1,640/387.

What is the Stock P/E of Solex Energy Ltd?

The Stock P/E of Solex Energy Ltd is 132.

What is the Book Value of Solex Energy Ltd?

The Book Value of Solex Energy Ltd is 57.8.

What is the Dividend Yield of Solex Energy Ltd?

The Dividend Yield of Solex Energy Ltd is 0.01 %.

What is the ROCE of Solex Energy Ltd?

The ROCE of Solex Energy Ltd is 21.3 %.

What is the ROE of Solex Energy Ltd?

The ROE of Solex Energy Ltd is 23.2 %.

What is the Face Value of Solex Energy Ltd?

The Face Value of Solex Energy Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Solex Energy Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE