Check Before You Invest : Acme Solar Holdings Ltd

Snapshot

Q.1 Which industry/sub-sector does Acme Solar Holdings Ltd belong to?

Acme Solar Holdings Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is Acme Solar Holdings Ltd a good quality company?

Acme Solar Holdings Ltd is a weak quality company, based on a inconsistent 9-year financial track record.

Q.3 Is Acme Solar Holdings Ltd undervalued or overvalued?

Acme Solar Holdings Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Acme Solar Holdings Ltd a good buy now?

Acme Solar Holdings Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd revenue growth is 187.2% for FY-2025, which is above its 5-year CAGR of 2.23%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Return on capital employed is 7.65% for FY-2025, which is in line with its 5-year historical median of 7.65%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Return on Asset is 2.56%, which is in line with its 5-year historical median of 2.56%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Return on equity is 5.73% for FY-2025, which is in line with its 5-year historical median of 5.73%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Cash conversion cycle is -44 days, below its 5-year historical median of -35 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.18	0.1
ROE	5.73	5.73
ROCE	7.65	7.65
Cash Conversion Cycle	-44 days	-35 days

Q.6 Gross Profit margin of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.6% for FY-2025, which is above its 5-year median of 9.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.86% for FY-2025, which is above its 5-year median of 5.08% indicating increasing margins.

Q.8 Net Profit Margin of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Net Profit Margin is 13.96% for FY-2025, is in line with with its 5-year median of 13.96%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	18.6	9.8
Operating Profit Margin	19.86	5.08
Net Profit Margin	13.96	13.96

Q.9 Debt to Equity ratio of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Debt-to-Equity ratio is 0.50, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Acme Solar Holdings Ltd?

Acme Solar Holdings Ltd Debt to cash flow from operations is 5.74, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Acme Solar Holdings Ltd?

Promoters hold 83.29% of the Acme Solar Holdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Acme Solar Holdings Ltd vs industry peers?

Acme Solar Holdings Ltd revenue CAGR is 2.23%, compared to the industry median CAGR of 0.59%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	187.2	0.6
Gross Profit Growth	0	-0.1
Operating Profit Growth	0	NAN
Net Profit Growth	-55	-3.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.18	0.13
ROE	5.73	2.44
ROCE	7.65	4.39
Cash Conversion Cycle (days)	-44.44	63

Valuation & price assessment

Q.1 Stock return of Acme Solar Holdings Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 40.93% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	40.9%

Q.3 Valuation ratios of Acme Solar Holdings Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	345.76	90.87	27.19
Price to Book	3.95	3.05	1.80
Price to Sales	10.19	13.14	6.78
EV to EBITDA	63.33	70.21	13.53

Check more companies

1. SJVN

2. CESC

3. Acme Solar Holdings

4. JP Power Ventures

5. Clean Max Env. Energ

6. Reliance Power

7. Indian Energy Exch

8. GMR Power and Urban

9. PTC India

10. RattanIndia Power

Check trending companies

1. Vardhman Textiles Ltd.

2. Tata Elxsi Ltd.

3. Shree Cement Ltd.

4. Amara Raja Energy & Mobility Ltd.

5. Vishal Mega Mart Ltd.