Listed below is one of the leading players in the solar industry, engaged in the manufacturing of solar photovoltaic modules and providing turnkey solar solutions across different segments, that has delivered multibagger returns of 10,250 percent to the shareholders of the company in just 5 years
Price Action
With a market capitalization of Rs. 1,750 Crores, in Friday’s trade, the shares of Solex Energy Limited closed at Rs. 1,620 per equity share, down 2.52 percent from its previous day’s close price of Rs. 1,661.80. It has delivered a multibagger return of 254 percent in a year.
Long Term Gain
On March 30, 2020, the shares of Solex Energy Limited closed at Rs. 15.60 exhibiting a gain of around 10,250 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to ~Rs. 1.03 Crores.
About the Company
Solex Energy Limited is engaged in the manufacturing of solar photovoltaic modules and providing turnkey solar solutions across different segments, such as solar power plants, solar water pumps, utility-scale ground-mounted solar power plants, and many others. It is equipped with top-notch manufacturing capabilities for PV modules utilizing P-Type Mono PERC and N-Type TOPcon technology.
Solex Energy Limited Operations include Turnkey Projects, spanning Residential Rooftop, Commercial, Industrial, and Utility Ventures. It is engaged in OEM & ODM partnerships with esteemed Indian and International entities for module production under their brand names.
It has a strong clientele base with well-known players like Indian Oil Corporation Limited, Torrent Power, Oil & Natural Gas Limited, Amul, Taj, Indian Post, Indian Institute of Management, NPCIL, and many others.
Solex Energy Limited has a 1.5 GW solar module manufacturing capacity and it is undergoing Brownfield expansion to achieve a target capacity of 4.0-4.5 GW for Solar Module Manufacturing & exploring expansion into cell manufacturing for 2 GW.
Capex Plans
As part of its Vision 2030 strategy, Solex Energy Limited has announced investments exceeding Rs. 8,000 Crores for advancing solar technology and scaling operations, positioning the company as a fully integrated solar player.
As part of this ambitious plan, Solex Energy Limited is exploring the development of a new cell manufacturing facility with an initial capacity of 2 GW, with a scaling capacity of up to 5 GW.
Its module manufacturing capacity will be increased from 1.5 GW to 15 GW, with this Solex Energy also aims to expand its workforce to over 25,000 to support this growth.
It is Launching India’s First Rectangular Cell-Based Solar Modules with N-Type TOPcon Technology. A major component of its Vision 2030 is the launch of the Tapi-R series. This revolutionary solar module incorporates N-Type TOPcon Technology and a rectangular cell design, setting a new standard for solar energy generation in India.
The new product line is particularly suited for large-scale solar projects in challenging environments, such as deserts and barren lands, with a bifacial rate of approximately 80 percent and a power temperature coefficient of -0.28%/°C. The series also includes a comprehensive 12-year product warranty and a 30-year linear performance guarantee, with the lowest annual degradation.
Industry Outlook
As per Mercom India Research The India Solar Energy Market is projected to grow at a CAGR of 19.80 percent. The solar PV segment is anticipated to lead the market due to the decreasing costs of solar modules and their versatility in generating electricity and heating water, resulting in the largest market share.
The Module manufacturing capacity is forecasted to exceed 150 GW, while cell capacity is anticipated to reach 75 GW by 2026.
Financials and Ratios
Its revenue from operations grew by 127 percent from Rs. 161 Crores in FY23 to Rs. 366 Crores in FY24, accompanied by profits of Rs. 3 Crores to Rs. 9 Crores.
In terms of Return ratios, it has delivered a return on equity(ROE) of 20.8 percent and a return on capital employed (ROCE) of 17.9 percent. It has maintained a debt-to-equity ratio of 2.08
Written by: Bharath K.S
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