Solex Energy Ltd (SOLEX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Modison

Rishabh Instrum.

Solex Energy

Salzer Electron.

Marsons

Hindusthan Insul

RIR Power Electr

Danish Power

Vivid Electromec

Prizor Viztech

Modern Insulator

Why is Solex Energy Ltd ?

Healthy long term growth as Net Sales has grown by an annual rate of 81.20% and Operating profit at 116.16%

With a growth in Net Profit of 364.41%, the company declared Outstanding results in Mar 26

NET SALES(Q) At Rs 885.53 cr has Grown at 248.09%
PBT LESS OI(Q) At Rs 77.80 cr has Grown at 296.13%
PAT(Q) At Rs 57.80 cr has Grown at 303.6%

With ROCE of 32.5, it has a Attractive valuation with a 3 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of -100.00%, its profits have risen by 127% ; the PEG ratio of the company is 0.1

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Below par performance in long term as well as near term

Along with generating -100.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Solex Energy should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Solex Energy for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Solex Energy

-15.26%

-0.27

57.33%

Sensex

-7.55%

-0.58

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

81.20%

EBIT Growth (5y)

116.16%

EBIT to Interest (avg)

2.85

Debt to EBITDA (avg)

1.93

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

4.21

Tax Ratio

25.04%

Dividend Payout Ratio

1.50%

Pledged Shares

Institutional Holding

0.94%

ROCE (avg)

28.66%

ROE (avg)

26.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.75

EV to EBIT

9.35

EV to EBITDA

7.98

EV to Capital Employed

3.04

EV to Sales

0.87

PEG Ratio

0.10

Dividend Yield

0.05%

ROCE (Latest)

32.52%

ROE (Latest)

36.40%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

38What is working for the Company

NET SALES(Q)

At Rs 885.53 cr has Grown at 248.09%

PBT LESS OI(Q)

At Rs 77.80 cr has Grown at 296.13%

PAT(Q)

At Rs 57.80 cr has Grown at 303.6%

OPERATING PROFIT TO INTEREST(Q)

Highest at 9.65 times

PBDIT(Q)

Highest at Rs 98.35 cr.

EPS(Q)

Highest at Rs 53.62

-8What is not working for the Company

INTEREST(9M)

At Rs 25.43 cr has Grown at 91.20%

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Here's what is working for Solex Energy

Net Sales - Quarterly

At Rs 885.53 cr has Grown at 248.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 77.80 cr has Grown at 296.13%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 57.80 cr has Grown at 303.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 9.65 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 885.53 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 98.35 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 77.80 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 57.80 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 53.62

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Solex Energy

Interest - Latest six months

At Rs 19.54 cr has Grown at 72.92%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)