ACMESOLAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | ACMESOLAR | Market Cap | 18,352 Cr. | Current Price | 303 ₹ | High / Low | 324 ₹ |
| Stock P/E | 354 | Book Value | 76.2 ₹ | Dividend Yield | 0.07 % | ROCE | 7.63 % |
| ROE | 5.18 % | Face Value | 2.00 ₹ | DMA 50 | 268 ₹ | DMA 200 | 252 ₹ |
| Chg in FII Hold | -0.43 % | Chg in DII Hold | 0.18 % | PAT Qtr | 31.7 Cr. | PAT Prev Qtr | 29.4 Cr. |
| RSI | 63.9 | MACD | 14.1 | Volume | 12,04,262 | Avg Vol 1Wk | 9,96,722 |
| Low price | 196 ₹ | High price | 324 ₹ | PEG Ratio | 6.41 | Debt to equity | 0.64 |
| 52w Index | 83.3 % | Qtr Profit Var | 2,394 % | EPS | 0.88 ₹ | Industry PE | 31.0 |
📈 Positive
- Market capitalization of ₹18,352 Cr. provides liquidity and visibility in the renewable sector.
- Dividend yield of 0.07% offers minimal but steady shareholder return.
- Quarterly PAT improved to ₹31.7 Cr. from ₹29.4 Cr., showing slight earnings recovery.
- DII holdings increased (+0.18%), reflecting domestic institutional support.
- Trading above DMA 50 (₹268) and DMA 200 (₹252), indicating medium-term technical strength.
⚠️ Limitation
- Extremely high P/E ratio of 354 vs industry average of 31.0, signaling severe overvaluation.
- Weak ROCE (7.63%) and ROE (5.18%) highlight poor efficiency.
- PEG ratio of 6.41 indicates growth is priced expensively.
- EPS of ₹0.88 is very low, limiting shareholder returns.
- Debt-to-equity ratio of 0.64 shows moderate leverage risk.
🚨 Company Negative News
- FII holdings reduced (-0.43%), showing declining foreign investor confidence.
- Earnings remain weak despite marginal PAT improvement.
🌟 Company Positive News
- Quarterly PAT growth (+2,394% variation) compared to previous weak base.
- RSI at 63.9 and MACD positive (14.1) suggest short-term bullish momentum.
🏭 Industry
- Industry P/E is 31.0, far below ACMESOLAR’s valuation.
- Renewable energy sector has long-term growth potential, but requires consistent profitability.
📝 Conclusion
ACMESOLAR is highly overvalued with weak fundamentals, making it a risky candidate for long-term investment unless profitability improves significantly.
🔑 **Entry Zone:** ₹200–230, closer to support levels (₹196) and below DMA averages.
📌 **Long-term Holding Guidance:** Weak suitability. Existing holders should consider reducing exposure at current levels. Holding period of 1–2 years only if earnings growth stabilizes and debt levels reduce. Risk remains high due to valuation disconnect; strict stop-loss discipline advised around ₹285.
This analysis shows ACMESOLAR’s valuation is disconnected from its fundamentals. Would you like me to prepare a sector overlay benchmarking (ACMESOLAR vs peers like Adani Green, Tata Power Renewables) to highlight relative valuation and efficiency gaps?