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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517498 | NSE: WEBELSOLAR

Websol Energy System Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 8:50 pm

Market Cap 5,719 Cr.
Current Price 1,317
High / Low1,646/191
Stock P/E106
Book Value 43.4
Dividend Yield0.00 %
ROCE14.3 %
ROE6.40 %
Face Value 10.0
PEG Ratio-2.04

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Websol Energy System Ltd

Competitors of Websol Energy System Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.032.8/19.9 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 3,077 Cr. 8121,377/70937.8 1550.00 %14.3 %20.1 % 10.0
Gagan Polycot India Ltd 0.86 Cr. 0.86/ 4.080.00 %81.2 %81.2 % 10.0
Fusion Micro Finance Ltd 1,859 Cr. 185675/161 2510.00 %14.1 %19.6 % 10.0
Five X Tradecom Ltd 0.99 Cr. 0.48/ 9.350.00 %0.00 %0.00 % 10.0
Industry Average4,512.36 Cr231.11161.59108.530.26%21.63%72.28%9.42

All Competitor Stocks of Websol Energy System Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales435850633140000125112
Expenses36514357715622132868
Operating Profit7775-4-2-5-1-1-1-2-344
OPM %17%12%13%9%-129%-14%-1,627%-1,327%-750%-277%-429%-13%39%
Other Income21211-0-1100-101-40
Interest1111111111055
Depreciation44444444444248
Profit before tax4442-8-7-11-5-6-5-107-3632
Tax %26%-3%51%69%-6%-45%-39%6%-12%-25%-49%62%28%
Net Profit3420-8-4-7-5-5-4-55-5923
EPS in Rs1.001.100.550.14-2.08-1.06-1.76-1.38-1.29-1.02-12.95-13.885.42

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:14 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales114305356280296183691961542131726137
Expenses12329135127126716793193120187302799
Operating Profit-914592917-2533426-13-138
OPM %-8%5%1%3%10%9%-36%1%22%12%-74%-5%28%
Other Income25-39-39-170111746061-110-104
Interest1931215966934510
Depreciation13181615151415151515153640
Profit before tax-16-74-52-9795-29-156914-32-153-117
Tax %0%0%1%14%0%0%0%-127%29%30%-25%-21%
Net Profit-16-74-52-10795-2944910-24-121-94
EPS in Rs-7.24-33.84-23.83-4.4935.831.79-9.971.3415.862.64-6.11-28.66-22.43
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-362.50%29.73%80.77%890.00%-93.67%-680.00%113.79%1125.00%-79.59%-340.00%-404.17%
Change in YoY Net Profit Growth (%)0.00%392.23%51.04%809.23%-983.67%-586.33%793.79%1011.21%-1204.59%-260.41%-64.17%

Websol Energy System Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-22%
5 Years:-18%
3 Years:-45%
TTM:30392%
Compounded Profit Growth
10 Years:6%
5 Years:11%
3 Years:%
TTM:374%
Stock Price CAGR
10 Years:55%
5 Years:125%
3 Years:163%
1 Year:569%
Return on Equity
10 Years:%
5 Years:0%
3 Years:-4%
Last Year:-6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital22222222222729313137394242
Reserves-90-164-217-2273674959414315515266146
Borrowings42838938235284817678353628184159
Other Liabilities1713834003061751871521097558486158
Total Liabilities530629587453317369352311284286267353406
Fixed Assets339322280266283304287254239225210270304
CWIP112000010006300
Investments0000000000005
Other Assets191296307187346564564561515397
Total Assets530629587453317369352311284286267353406

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-4-56-1330142105136-3-835
Cash from Investing Activity +-2-14-4-028-1613-0-1-6-223
Cash from Financing Activity +-06315-30-168-12-11-14-35610189
Net Cash Flow-6-7-1-12-30012-41

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-437.00-375.00-377.00-343.00-55.00-64.00-101.00-75.00-1.00-10.00-41.00-185.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days23021016294242513347463711
Inventory Days143556133751216297056544525
Days Payable38132828325064172517134157588781,334
Cash Conversion Cycle-9-63-60-124-55-79-249-72-4045-298-798
Working Capital Days-235-126-146-222-142-49-180-49-2439-272-411
ROCE %-1%-5%-3%62%8%-12%-1%11%7%-11%-14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters25.37%25.37%25.37%25.37%25.37%26.76%26.76%26.76%26.76%27.71%27.71%27.71%
FIIs7.70%3.75%2.98%2.70%2.78%3.84%4.08%4.14%0.83%0.77%0.47%0.01%
DIIs0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.25%0.00%0.00%
Public66.91%70.86%71.63%71.90%71.83%69.38%69.13%69.09%72.40%71.26%71.82%72.28%
No. of Shareholders31,95660,24978,17378,23176,49574,34972,62269,25562,10161,03286,1641,02,892

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.)-29.99-6.312.9122.101.40
Diluted EPS (Rs.)-29.99-6.312.9119.301.21
Cash EPS (Rs.)-20.13-2.156.8226.716.40
Book Value[Excl.RevalReserv]/Share (Rs.)25.5249.3052.2953.8131.44
Book Value[Incl.RevalReserv]/Share (Rs.)25.5249.3052.2953.8131.44
Revenue From Operations / Share (Rs.)6.134.4458.1949.3263.91
PBDIT / Share (Rs.)-1.56-2.548.4612.224.46
PBIT / Share (Rs.)-10.09-6.504.287.29-0.59
PBT / Share (Rs.)-36.17-8.133.7822.24-4.99
Net Profit / Share (Rs.)-28.66-6.112.6421.781.34
PBDIT Margin (%)-25.42-57.2814.5424.776.97
PBIT Margin (%)-164.70-146.377.3514.77-0.93
PBT Margin (%)-590.42-183.096.4945.08-7.81
Net Profit Margin (%)-467.77-137.514.5344.162.10
Return on Networth / Equity (%)-112.29-12.385.0440.474.27
Return on Capital Employeed (%)-15.63-12.047.0210.70-0.89
Return On Assets (%)-34.29-8.863.3823.861.32
Long Term Debt / Equity (X)1.510.000.020.070.41
Total Debt / Equity (X)1.700.140.180.150.70
Asset Turnover Ratio (%)0.080.060.740.510.59
Current Ratio (X)0.380.300.910.570.49
Quick Ratio (X)0.140.060.550.320.38
Inventory Turnover Ratio (X)1.240.828.586.866.82
Interest Coverage Ratio (X)-1.39-2.5810.164.192.20
Interest Coverage Ratio (Post Tax) (X)-2.29-4.543.772.342.84
Enterprise Value (Cr.)2239.74327.32376.99154.48105.90
EV / Net Operating Revenue (X)86.6119.001.771.010.54
EV / EBITDA (X)-340.61-33.1712.164.067.76
MarketCap / Net Operating Revenue (X)79.5517.431.620.840.19
Price / BV (X)19.101.571.800.770.39
Price / Net Operating Revenue (X)79.5617.441.620.840.19
EarningsYield-0.05-0.070.020.520.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Websol Energy System Ltd as of November 25, 2024 is: 300.31

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.

As of November 25, 2024, Websol Energy System Ltd is Overvalued by 77.20% compared to the current share price 1,317.00

Intrinsic Value of Websol Energy System Ltd as of November 25, 2024 is: 144.12

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 25, 2024, Websol Energy System Ltd is Overvalued by 89.06% compared to the current share price 1,317.00

Last 5 Year EPS CAGR: -52.01%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -151.42, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -150.17, which is a positive sign.
  1. The stock has a low average ROCE of 3.42%, which may not be favorable.
  2. The company has higher borrowings (177.85) compared to reserves (20.23), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (180.46) and profit (-25.38).

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 Websol Energy System Ltd:
    1. Net Profit Margin: -467.77%
      • 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: -15.63% (Industry Average ROCE: 21.63%)
      • 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%: -112.29% (Industry Average ROE: 72.28%)
      • 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): -2.29
      • 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: 0.14
      • 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: 106 (Industry average Stock P/E: 161.59)
      • 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: 1.7
      • 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 - Qualitative Analysis

Websol Energy Systems Ltd. is a Public Limited Listed company incorporated on 08/02/1990 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L29307WB1990PLC048350 and registration number is 048350. Currently company belongs to the Industry of Electric Equipment - General. Company’s Total Operating Revenue is Rs. 213.22 Cr. and Equity Capital is Rs. 36.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - GeneralPlot No. 849, Block P, Kolkata West Bengal 700053investors@webelsolar.com
http://www.webelsolar.com
Management
NamePosition Held
Mr. S L AgarwalChairperson & Managing Director
Mr. Sanjana KhaitanDirector & CFO
Mrs. Sreeram VasanthiNon Executive Director
Mr. Devan KaushikInd. Non-Executive Director
Mr. Kushal AgarwalInd. Non-Executive Director
Mr. Vishal PatodiaDirector

FAQ

What is the latest intrinsic value of Websol Energy System Ltd?

The latest intrinsic value of Websol Energy System Ltd as on 25 November 2024 is ₹300.31, which is 77.20% lower than the current market price of ₹1,317.00.

What is the Market Cap of Websol Energy System Ltd?

The Market Cap of Websol Energy System Ltd is 5,719 Cr..

What is the current Stock Price of Websol Energy System Ltd as on 25 November 2024?

The current stock price of Websol Energy System Ltd as on 25 November 2024 is 1,317.

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

In FY 2024, the High / Low of Websol Energy System Ltd stocks is 1,646/191.

What is the Stock P/E of Websol Energy System Ltd?

The Stock P/E of Websol Energy System Ltd is 106.

What is the Book Value of Websol Energy System Ltd?

The Book Value of Websol Energy System Ltd is 43.4.

What is the Dividend Yield of Websol Energy System Ltd?

The Dividend Yield of Websol Energy System Ltd is 0.00 %.

What is the ROCE of Websol Energy System Ltd?

The ROCE of Websol Energy System Ltd is 14.3 %.

What is the ROE of Websol Energy System Ltd?

The ROE of Websol Energy System Ltd is 6.40 %.

What is the Face Value of Websol Energy System Ltd?

The Face Value of Websol Energy System 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 Websol Energy System 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