ACMESOLAR - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.2

Let’s unpack ACMESOLAR’s fundamentals to assess whether its green energy mission translates into green portfolio gains.

☀️ Core Financials Analysis

Profitability & Returns

EPS ₹6.35 at a high P/E of 42.5 signals optimism priced in, but actual profitability is modest.

ROE 7.5% and ROCE 8.4% — below ideal thresholds; suggests inefficiency in capital deployment.

Debt & Liquidity

Debt-to-equity 2.43 — significantly high leverage; risky if interest rates increase or cash flow tightens.

Dividend yield is negligible at 0.07%, making it purely a growth-focused stock.

Quarterly Profit

PAT rose from ₹132 Cr to ₹143 Cr — healthy uptick, though profit variation of 10,170% seems anomalous or possibly a base-effect skew.

💸 Valuation Snapshot

Metric Value Insight

P/E Ratio 42.5 Slightly above industry PE; growth optimism priced in

P/B Ratio ~3.85 Reasonable given Book Value ₹74.5

PEG Ratio 0.88 Fairly valued on growth metrics

Intrinsic Value ❌ Likely lower than CMP Debt and low ROE weigh on fundamentals

🔋 Business Model & Edge

A renewable energy player with a strong macro tailwind from decarbonization and solar infrastructure growth.

However, high debt load could restrict capacity expansion or margins.

FII holding ↑1.02% shows rising foreign investor confidence.

DII holding ↓0.48% signals some domestic caution — perhaps debt-related.

📉 Technical Outlook

RSI: 59.0 — neutral to slightly overbought; momentum still intact.

MACD: 8.74 — bullish crossover indicates strength.

Price near 52W high ₹304 — momentum has carried it far from DMA 200 ₹240.

Volume surge (~47L) vs. average (~44L) reflects active trading interest.

📍 Suggested Entry Zone & Holding Strategy

Entry Zone: ₹255–₹275 — near DMA 50 support.

Accumulate cautiously due to elevated debt and moderate return metrics.

Long-term view depends on how effectively ACMESOLAR scales without ballooning leverage further. Monitor execution on green projects and regulatory incentives closely.

If you’d like a debt-adjusted DCF model or peer comparison with other solar players like Adani Green or Tata Power Renewable, I can break that down too. Let’s build a clean-energy watchlist 🌱⚡.

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