Check Before You Invest : Insolation Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does Insolation Energy Ltd belong to?

Insolation Energy Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.

Q.2 Is Insolation Energy Ltd a good quality company?

Insolation Energy Ltd is a average quality company, based on a somewhat consistent 8-year financial track record.

Q.3 Is Insolation Energy Ltd undervalued or overvalued?

Insolation Energy Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Insolation Energy Ltd a good buy now?

Insolation Energy Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Insolation Energy Ltd?

Insolation Energy Ltd revenue growth is -50.8% for FY-2025, which is below its 5-year CAGR of 4.91%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Insolation Energy Ltd?

Insolation Energy Ltd Return on capital employed is 3.26% for FY-2025, which is below its 5-year historical median of 16.27%. 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 Insolation Energy Ltd?

Insolation Energy Ltd Return on Asset is 1.73%, which is below its 5-year historical median of 7.08%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Insolation Energy Ltd?

Insolation Energy Ltd Return on equity is 2.07% for FY-2025, which is below its 5-year historical median of 17.7%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Insolation Energy Ltd?

Insolation Energy Ltd Cash conversion cycle is 98 days, above its 5-year historical median of 49 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.39	2.98
ROE	2.07	17.7
ROCE	3.26	16.27
Cash Conversion Cycle	98 days	49 days

Q.6 Gross Profit margin of Insolation Energy Ltd?

Insolation Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is above its 5-year median of 5.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Insolation Energy Ltd?

Insolation Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.06% for FY-2025, which is below its 5-year median of 4.72% indicating decreasing margins.

Q.8 Net Profit Margin of Insolation Energy Ltd?

Insolation Energy Ltd Net Profit Margin is 4.45% for FY-2025, is above with its 5-year median of 3.22%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.4	5.3
Operating Profit Margin	1.06	4.72
Net Profit Margin	4.45	3.22

Q.9 Debt to Equity ratio of Insolation Energy Ltd?

Insolation Energy Ltd Debt-to-Equity ratio is 0.06, which is lower with the industry average of 0.33, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Insolation Energy Ltd?

Insolation Energy Ltd Debt to cash flow from operations is -1.51, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Insolation Energy Ltd?

Promoters hold 66.12% of the Insolation Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Insolation Energy Ltd vs industry peers?

Insolation Energy Ltd revenue CAGR is 4.91%, compared to the industry median CAGR of 9.26%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-50.8	9.3
Gross Profit Growth	60	14.1
Operating Profit Growth	-75	15.2
Net Profit Growth	66.7	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.39	0.83
ROE	2.07	8.53
ROCE	3.26	9.68
Cash Conversion Cycle (days)	98.37	129

Valuation & price assessment

Q.1 Stock return of Insolation Energy Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 113.42% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	113.4%	-44.3%

Q.3 Valuation ratios of Insolation Energy 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	587.27	219.35	37.27
Price to Book	6.71	12.54	3.80
Price to Sales	26.15	19.59	4.14
EV to EBITDA	256.18	248.26	22.41

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