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Check Before You Invest : Solarium Green Energy Ltd

BSE: 544354 NSE: ISIN: INE0W0H01017
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Solarium Green Energy Ltd belong to?
Solarium Green Energy Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Solarium Green Energy Ltd a good quality company?
Solarium Green Energy Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Solarium Green Energy Ltd undervalued or overvalued?
Solarium Green Energy Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 23.64 32.49
Price to Book 3.12 3.87
Price to Sales 1.91 2.77
EV to EBITDA 15.71 22.20
Q.4 Is Solarium Green Energy Ltd a good buy now?
Solarium Green 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Solarium Green Energy Ltd?
Solarium Green Energy Ltd revenue growth is 29.7% for FY-2025, which is above its 3-year CAGR of 11.19%, indicating faster growth.

Q.2 Gross Profit margin of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.2% for FY-2025, which is in line with its 3-year median of 10.2%, indicating stable margins.

Q.3 Operating Profit Margin of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.49% for FY-2025, which is in line with its 3-year median of 11.49% indicating stable margins.

Q.4 Net Profit Margin of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Net Profit Margin is 8.08% for FY-2025, is in line with its 3-year median of 8.08%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 10.2 10.2
Operating Profit Margin (%) 11.49 11.49
Net Profit Margin (%) 8.08 8.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Return on Asset is 11.91%, which is in line with its 3-year historical median of 11.91%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Return on capital employed is 20.23% for FY-2025, which is in line with its 3-year historical median of 20.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Return on equity is 23.07% for FY-2025, which is below its 3-year historical median of 44.93%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Cash conversion cycle is 120 days, above its 3-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 3-year
Historic Median
Asset Turnover (x) 1.47 2.59
ROE (%) 23.07 44.93
ROCE (%) 20.23 20.23
Cash Conversion Cycle 120 days 49 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Debt-to-Equity ratio is 0.48, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Solarium Green Energy Ltd?
Solarium Green Energy Ltd Debt to cash flow from operations is -1.1, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Solarium Green Energy Ltd?

Q.1 Promoter shareholding and pledge status of Solarium Green Energy Ltd?
Promoters hold 58.58% of the Solarium Green Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Solarium Green Energy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Solarium Green Energy Ltd vs industry peers?
Solarium Green Energy Ltd revenue CAGR is 11.19%, compared to the industry median CAGR of 15.92%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 29.7 15.9
Gross Profit Growth (%) 4.6 40.5
Operating Profit Growth (%) 8.3 34.4
Net Profit Growth (%) 18.8 53.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.47 0.82
ROE (%) 23.07 11.66
ROCE (%) 20.23 14.75
Cash Conversion Cycle (days) 119.83 53

Valuation & price assessment

Q.1 Stock return of Solarium Green Energy Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -23.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -23.4%
Q.2 Valuation ratios of Solarium Green Energy Ltd vs historical?
The current P/E ratio of 23.64 is lower than its historical median of 32.49, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 23.64 32.49 22.41
Price to Book 3.12 3.87 1.92
Price to Sales 1.91 2.77 1.65
EV to EBITDA 15.71 22.20 12.04

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