⚠ 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.
SWSOLAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | SWSOLAR | Market Cap | 4,899 Cr. | Current Price | 210 ₹ | High / Low | 451 ₹ |
| Stock P/E | 16.4 | Book Value | 20.1 ₹ | Dividend Yield | 0.00 % | ROCE | 13.5 % |
| ROE | 11.2 % | Face Value | 1.00 ₹ | DMA 50 | 218 ₹ | DMA 200 | 274 ₹ |
| Chg in FII Hold | -1.30 % | Chg in DII Hold | -1.84 % | PAT Qtr | 73.1 Cr. | PAT Prev Qtr | 54.9 Cr. |
| RSI | 48.8 | MACD | -4.46 | Volume | 1,82,98,655 | Avg Vol 1Wk | 57,38,137 |
| Low price | 192 ₹ | High price | 451 ₹ | PEG Ratio | 0.29 | Debt to equity | 2.60 |
| 52w Index | 6.99 % | Qtr Profit Var | -5.65 % | EPS | -100 ₹ | Industry PE | 17.6 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from 54.9 Cr. to 73.1 Cr., but YoY profit variation (-5.65%) shows weakness.
- Profit Margins: EPS reported at -100 ₹, indicating accounting or reporting adjustments; ROE 11.2%, ROCE 13.5% — moderate efficiency.
- Debt Ratios: Debt-to-equity at 2.60, reflecting high leverage and financial risk.
- Cash Flows: Likely under pressure due to high debt and inconsistent profitability.
- Return Metrics: ROE and ROCE modest, not strong enough to justify high leverage.
💹 Valuation Indicators
- P/E Ratio: 16.4 (slightly below industry PE of 17.6, suggesting fair valuation).
- P/B Ratio: ~10.4 (Current Price / Book Value = 210 / 20.1).
- PEG Ratio: 0.29 (indicates undervaluation relative to growth, but debt risk remains).
- Intrinsic Value: Current price appears speculative given weak fundamentals and high leverage.
🏢 Business Model & Competitive Advantage
- Operates in renewable energy with focus on solar power projects.
- Competitive advantage lies in sectoral demand tailwinds and government renewable energy initiatives.
- High debt and weak profitability limit long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 180–200 ₹ (closer to low price support).
- Long-Term Holding: Risky due to high leverage and inconsistent earnings; suitable only for high-risk investors.
✅ Positive
- Sectoral demand tailwinds from renewable energy initiatives.
- Quarterly PAT improved sequentially from 54.9 Cr. to 73.1 Cr.
- PEG ratio at 0.29 suggests potential undervaluation if growth stabilizes.
⚠️ Limitation
- High debt-to-equity ratio (2.60).
- Negative EPS (-100 ₹) indicates weak profitability.
- ROE (11.2%) and ROCE (13.5%) modest compared to peers.
📉 Company Negative News
- FII holdings reduced (-1.30%), showing cautious foreign sentiment.
- DII holdings reduced (-1.84%), reflecting domestic institutional caution.
- MACD at -4.46 indicates bearish technical signals.
📈 Company Positive News
- Sequential PAT growth (+33%).
- Strong trading volumes indicate active market interest.
- Renewable energy sector tailwinds support long-term demand outlook.
🏭 Industry
- Industry PE at 17.6, highlighting SWSOLAR’s fair valuation.
- Renewable energy industry remains strong, driven by government policies and global sustainability goals.
🔎 Conclusion
- SWSOLAR faces high debt and weak profitability despite sectoral demand tailwinds.
- Valuation is fair, but risks outweigh near-term upside.
- Best entry zone lies near 180–200 ₹ for speculative investors.
- Conservative investors should avoid until debt reduces and profitability stabilizes.