⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ACMESOLAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | ACMESOLAR | Market Cap | 15,052 Cr. | Current Price | 249 ₹ | High / Low | 324 ₹ |
| Stock P/E | 290 | Book Value | 76.2 ₹ | Dividend Yield | 0.08 % | ROCE | 7.63 % |
| ROE | 5.18 % | Face Value | 2.00 ₹ | DMA 50 | 232 ₹ | DMA 200 | 243 ₹ |
| Chg in FII Hold | -1.54 % | Chg in DII Hold | 0.48 % | PAT Qtr | 31.7 Cr. | PAT Prev Qtr | 29.4 Cr. |
| RSI | 60.6 | MACD | 5.08 | Volume | 7,43,539 | Avg Vol 1Wk | 40,33,313 |
| Low price | 173 ₹ | High price | 324 ₹ | PEG Ratio | 5.26 | Debt to equity | 0.64 |
| 52w Index | 50.2 % | Qtr Profit Var | 2,394 % | EPS | 0.88 ₹ | Industry PE | 29.8 |
📊 Core Financials
- Profitability: PAT improved slightly from ₹29.4 Cr. to ₹31.7 Cr. (Qtr Profit Var: +2,394%)
- Margins: ROCE at 7.63% and ROE at 5.18% indicate weak efficiency
- Debt: Debt-to-equity ratio at 0.64 shows moderate leverage
- Cash Flow: EPS at ₹0.88 is very low, raising sustainability concerns
💰 Valuation Indicators
- P/E Ratio: 290 vs Industry PE of 29.8 → extremely overvalued
- P/B Ratio: Current Price ₹249 vs Book Value ₹76.2 → ~3.3x book
- PEG Ratio: 5.26 → growth priced at a steep premium
- Intrinsic Value: Current valuation far exceeds fundamentals
🏢 Business Model & Health
- Market Cap: ₹15,052 Cr. reflects mid-sized presence in renewable energy
- Dividend Yield: 0.08% provides negligible shareholder return
- Competitive Advantage: Positioned in solar energy, a growing sector
- Overall Health: Weak profitability, high debt, and stretched valuations undermine stability
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹170–190 if fundamentals improve
- Long-Term Holding: Risky at current valuations; suitable only if earnings scale up significantly
✅ Positive
- Presence in renewable energy sector with long-term growth potential
- Quarterly PAT shows slight improvement
- DII holding increased (+0.48%)
⚠️ Limitation
- Extremely high P/E ratio (290)
- Weak ROE (5.18%) and ROCE (7.63%)
- PEG ratio (5.26) indicates expensive growth
📉 Company Negative News
- FII holding decreased (-1.54%)
- High debt-to-equity ratio (0.64) compared to peers
📈 Company Positive News
- Quarterly PAT improved marginally
- DII holding increased (+0.48%)
🏭 Industry
- Industry PE: 29.8, far below ACMESOLAR’s PE
- Renewable energy sector has strong long-term demand drivers
🔎 Conclusion
ACMESOLAR operates in a promising renewable energy sector but currently suffers from weak profitability, high debt, and extremely stretched valuations.
While institutional support from DIIs is a positive, the stock is risky for long-term holding unless earnings improve significantly.
Entry should be considered only at lower levels, closer to intrinsic value, if profitability strengthens.