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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Solex Energy Ltd

About the Company - Solex Energy Ltd

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 - Gensets/TurbinesPlot 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

Solex Energy Ltd. Share Price Update

Share PriceValue
Today₹672.40
Previous Day₹616.35

Basic Stock Data of Solex Energy Ltd

Market Cap 720 Cr.
Current Price 900
High / Low990/261
Stock P/E185
Book Value 47.8
Dividend Yield0.02 %
ROCE12.0 %
ROE7.46 %
Face Value 10.0

Data Source: screener.in

Competitors of Solex Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Honda India Power Products Ltd 2,510 Cr. 2,4763,136/1,79127.0 7570.67 %18.8 %13.7 % 10.0
Industry Average2,510.00 Cr2,476.0027.00757.000.67%18.80%13.70%10.00

Solex Energy Ltd Quarterly Results

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales857068225735372114193
Expenses806764215534361913284
Operating Profit5442211299
OPM %6%5%6%7%3%3%2%9%7%9%
Other Income0000000-031
Interest0010101144
Depreciation0000000144
Profit before tax5331110-141
Tax %28%22%35%26%31%31%-5%22%29%45%
Net Profit3221110-031
EPS in Rs6.704.924.091.801.600.740.50-0.583.960.91

Solex Energy Ltd Quarterly Chart

Solex Energy Ltd Profit & Loss

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%

Solex Energy Ltd Profit & Loss Yearly Chart

Solex Energy Ltd 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:84%
3 Years:162%
1 Year:88%
Return on Equity
10 Years:%
5 Years:12%
3 Years:6%
Last Year:7%

Solex Energy Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1225555888
Reserves0019131719273030
Borrowings44166512196681
Other Liabilities492032474440183768
Total Liabilities915255271717673141188
Fixed Assets022111115558
CWIP00000002410
Investments0000000000
Other Assets81323517070754885129
Total Assets915255271717673141188

Solex Energy Ltd 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

Solex Energy Ltd 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%

Solex Energy Ltd Financial Efficiency Indicators Chart

Solex Energy Ltd Share Holding Pattern

MonthSep 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Apr 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Promoters70.43%70.43%70.43%70.43%70.43%70.43%70.65%43.49%70.65%70.65%70.65%70.65%
Public29.57%29.57%29.57%29.57%29.57%29.57%29.35%56.51%29.36%29.35%29.35%29.35%
No. of Shareholders252241225225220214246245308303567917

Solex Energy Ltd Shareholding Pattern Chart

No. of Solex Energy Ltd Shareholders

This stock is not held by any mutual fund

Solex Energy Ltd ROCE Trend

Solex Energy Ltd EPS Trend

Solex Energy Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.391.283.399.0110.07
Diluted EPS (Rs.)3.391.283.399.0110.07
Cash EPS (Rs.)9.061.553.929.6711.25
Book Value[Excl.RevalReserv]/Share (Rs.)47.0343.8047.7344.8436.39
Book Value[Incl.RevalReserv]/Share (Rs.)47.0343.8047.7344.8436.39
Dividend / Share (Rs.)0.150.150.300.500.50
Revenue From Operations / Share (Rs.)202.1490.41161.18279.43301.74
PBDIT / Share (Rs.)17.502.797.3315.6116.46
PBIT / Share (Rs.)11.832.476.8114.9515.28
PBT / Share (Rs.)4.811.534.7712.6413.77
Net Profit / Share (Rs.)3.391.233.399.0110.07
PBDIT Margin (%)8.653.084.545.585.45
PBIT Margin (%)5.852.734.225.355.06
PBT Margin (%)2.381.692.954.524.56
Net Profit Margin (%)1.671.362.103.223.33
Return on Networth / Equity (%)7.202.817.1020.0927.66
Return on Capital Employeed (%)10.963.7210.8227.1334.83
Return On Assets (%)1.921.322.216.276.99
Long Term Debt / Equity (X)1.190.370.040.000.01
Total Debt / Equity (X)1.750.600.470.220.35
Asset Turnover Ratio (%)1.500.961.091.942.43
Current Ratio (X)1.532.221.641.601.41
Quick Ratio (X)0.971.561.461.481.29
Inventory Turnover Ratio (X)6.295.149.2321.0119.53
Dividend Payout Ratio (NP) (%)4.4224.2914.730.009.93
Dividend Payout Ratio (CP) (%)1.6519.3612.760.008.89
Earning Retention Ratio (%)95.5875.7185.270.0090.07
Cash Earning Retention Ratio (%)98.3580.6487.240.0091.11
Interest Coverage Ratio (X)2.492.973.356.7510.91
Interest Coverage Ratio (Post Tax) (X)1.482.322.484.897.67
Enterprise Value (Cr.)409.41110.4026.4014.1920.79
EV / Net Operating Revenue (X)2.531.530.330.100.13
EV / EBITDA (X)29.2549.517.291.842.56
MarketCap / Net Operating Revenue (X)2.121.260.210.070.10
Retention Ratios (%)95.5775.7085.260.0090.06
Price / BV (X)9.132.610.730.430.83
Price / Net Operating Revenue (X)2.121.260.210.070.10
EarningsYield0.010.010.090.450.33

Solex Energy Ltd Profitability Ratios (%)

Solex Energy Ltd Liquidity Ratios

Solex Energy Ltd Liquidity Ratios (%)

Solex Energy Ltd Interest Coverage Ratios (X)

Solex Energy Ltd Valuation Ratios

Fair Value / Intrinsic Value of Solex Energy Ltd

Fair Value: ₹659.82

The stock is overvalued by 26.69% compared to the current price ₹900

*Investments are subject to market risks

Strength and Weakness of Solex Energy Ltd

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 is trading at a high valuation with an average P/B ratio of 11.94 and average Dividend Yield of 4.64%.
  2. The stock has a high average Working Capital Days of 107.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 153.67, which may not be favorable.
  4. The company has higher borrowings (20.40) compared to reserves (14.60), which may suggest financial risk.

Should I Buy Solex Energy Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Solex Energy Ltd:
    1. Net Profit Margin: 1.67%
      • 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: 10.96% (Industry Average ROCE: 18.8%)
      • 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. Interest Coverage Ratio (Post Tax): 1.48
      • 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.
    4. Quick Ratio: 0.97
      • 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.
    5. ✗ Stock P/E: 194 (Industry average Stock P/E: 24.3)
      • 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.
    6. ✗ Total Debt / Equity: 1.75
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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