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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 517498 | NSE: WEBELSOLAR

Fundamental Analysis of Websol Energy System Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:27 pm

Market Cap 2,327 Cr.
Current Price 550
High / Low749/82.2
Stock P/E
Book Value 25.5
Dividend Yield0.00 %
ROCE16.7 %
ROE10.4 %
Face Value 10.0
PEG Ratio0.00

Data Source: screener.in

Competitors of Websol Energy System Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Amara Raja Energy & Mobility Ltd
Aik Pipes & Polymers Ltd 85.9 Cr. 135152/96.525.2 34.40.00 %23.0 %24.8 % 10.0
ABC India Ltd 60.0 Cr. 111161/81.027.3 83.40.45 %8.10 %5.07 % 10.0
Vaxtex Cotfab Ltd 18.7 Cr. 1.025.34/0.65 1.020.00 %29.7 %41.8 % 1.00
Visagar Polytex Ltd 31.4 Cr. 1.132.12/0.80 0.050.00 %85.4 %156 % 1.00
Industry Average432.94 Cr152.6137.2277.310.24%26.03%20.54%7.88

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales47435850633140000125
Expenses38365143577156221328
Operating Profit97775-4-2-5-1-1-1-2-3
OPM %19%17%12%13%9%-129%-14%-1,627%-1,327%-750%-277%-429%-13%
Other Income221211-0-1100-101-4
Interest2111111111105
Depreciation44444444444424
Profit before tax54442-8-7-11-5-6-5-107-36
Tax %402%26%-3%51%69%6%45%39%-6%12%25%49%-62%
Net Profit-153420-8-4-7-5-5-4-55-59
EPS in Rs-4.791.001.100.550.14-2.08-1.06-1.76-1.38-1.29-1.02-12.95-13.88

Last Updated: July 10, 2024, 11:24 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 11:24 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales114305356280296183691961542131726
Expenses123291351271267167931931201873033
Operating Profit-914592917-2533426-13-8
OPM %-8%5%1%3%10%9%-36%1%22%12%-74%-29%
Other Income25-39-39-170111746061-104
Interest19312159669345
Depreciation131816151514151515151536
Profit before tax-16-74-52-9795-29-156914-32-153
Tax %0%0%-1%-14%0%0%-0%127%29%30%25%21%
Net Profit-16-74-52-10795-2944910-24-121
EPS in Rs-7.24-33.84-23.83-4.4935.831.79-9.971.3415.862.64-6.11-28.66
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%

Growth

Compounded Sales Growth
10 Years:-22%
5 Years:-18%
3 Years:-45%
TTM:50%
Compounded Profit Growth
10 Years:4%
5 Years:8%
3 Years:%
TTM:26%
Stock Price CAGR
10 Years:36%
5 Years:90%
3 Years:97%
1 Year:546%
Return on Equity
10 Years:%
5 Years:-1%
3 Years:-5%
Last Year:-10%

Last Updated: July 17, 2024, 4:59 pm

Balance Sheet

Last Updated: July 10, 2024, 11:24 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital222222222227293131373942
Reserves-90-164-217-2273674959414315515266
Borrowings42838938235284817678353628184
Other Liabilities17138340030617518715210975584861
Total Liabilities530629587453317369352311284286267353
Fixed Assets339322280266283304287254239225210270
CWIP11200001000630
Investments000000000000
Other Assets1912963071873465645645615153
Total Assets530629587453317369352311284286267353

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-437.00-375.00-377.00-343.00-55.00-64.00-101.00-75.00-1.00-10.00-41.00-192.00

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

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days44230210162942425133474637
Inventory Days53143556133751216297056544
Days Payable373813282832506417251713415758878
Cash Conversion Cycle59-9-63-60-124-55-79-249-72-4045-298
Working Capital Days-140-235-126-146-222-142-49-180-49-2439-272
ROCE %-31%-1%-5%-3%62%8%-12%-1%11%7%-11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters25.04%25.37%25.37%25.37%25.37%25.37%26.76%26.76%26.76%26.76%27.71%27.71%
FIIs1.67%7.70%3.75%2.98%2.70%2.78%3.84%4.08%4.14%0.83%0.77%0.47%
DIIs0.03%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.25%0.00%
Public73.27%66.91%70.86%71.63%71.90%71.83%69.38%69.13%69.09%72.40%71.26%71.82%
No. of Shareholders25,45431,95660,24978,17378,23176,49574,34972,62269,25562,10161,03286,164

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.)-20.12-2.156.8226.716.40
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 (%)-25.44-57.2814.5424.776.97
PBIT Margin (%)-164.73-146.377.3514.77-0.93
PBT Margin (%)-590.40-183.096.4945.08-7.81
Net Profit Margin (%)-467.74-137.514.5344.162.10
Return on Networth / Equity (%)-112.29-12.385.0440.474.27
Return on Capital Employeed (%)-15.64-12.047.0210.70-0.89
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)0.970.828.586.866.82
Interest Coverage Ratio (X)-1.39-2.5810.164.192.20
Interest Coverage Ratio (Post Tax) (X)-2.30-4.543.772.342.84
Enterprise Value (Cr.)2239.92327.32376.99154.48105.90
EV / Net Operating Revenue (X)86.6219.001.771.010.54
EV / EBITDA (X)-340.41-33.1712.164.067.76
MarketCap / Net Operating Revenue (X)79.5617.431.620.840.19
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: 40.58

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.

Overvalued: 92.62% compared to the current price 550

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 20.42

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.

Overvalued: 96.29% compared to the current price 550

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -49.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -128.83, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -78.75, which is a positive sign.
  1. The stock has a low average ROCE of 2.00%, which may not be favorable.
  2. The company has higher borrowings (179.42) compared to reserves (9.75), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (184.08) and profit (-17.75).

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: -467.74%
      • 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: -15.64% (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%: -112.29% (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): -2.30
      • 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: (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: 1.70
      • 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

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, 48, Pramatha Choudhury Sarani, Kolkata West Bengal 700053investors@webelsolar.com
http://www.webelsolar.com
Management
NamePosition Held
Mr. S L AgarwalChairman & Managing Director
Mrs. Sreeram VasanthiExecutive Director
Mr. Devan KaushikInd. Non-Executive Director
Mr. Dharmendra SethiaInd. Non-Executive Director
Mr. Vishal PatodiaInd. Non-Executive Director
Mrs. Dipti BudhiaNon Executive Director

FAQ

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

The latest fair value of Websol Energy System Ltd is ₹40.58.

What is the Market Cap of Websol Energy System Ltd?

The Market Cap of Websol Energy System Ltd is 2,327 Cr..

What is the current Stock Price of Websol Energy System Ltd as on 19 July 2024?

The current stock price of Websol Energy System Ltd as on 19 July 2024 is 550.

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 749/82.2.

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

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

What is the Book Value of Websol Energy System Ltd?

The Book Value of Websol Energy System Ltd is 25.5.

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 16.7 %.

What is the ROE of Websol Energy System Ltd?

The ROE of Websol Energy System Ltd is 10.4 %.

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