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Check Before You Invest : Websol Energy System Ltd

BSE: 517498 NSE: WEBELSOLAR ISIN: INE855C01023
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Websol Energy System Ltd belong to?
Websol Energy System Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Websol Energy System Ltd a good quality company?
Websol Energy System Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Websol Energy System Ltd undervalued or overvalued?
Websol Energy System Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Websol Energy System Ltd a good buy now?
Websol Energy System 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 Websol Energy System Ltd?
Websol Energy System Ltd revenue growth is 2,125.3% for FY-2025 , which is below its 5 year CAGR of 24.1% , indicating slower growth.
Q.2 Gross Profit margin of Websol Energy System Ltd?
Websol Energy System Ltd Gross profit margin which is the profit after deduction of direct costs, is 40.9% for FY-2025 , which is above its 5 year median of 13.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Websol Energy System Ltd?
Websol Energy System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.05% for FY-2025 , which is above its 5 year median of 12.4% indicating increasing margins.
Q.4 Net Profit Margin of Websol Energy System Ltd?
Websol Energy System Ltd Net Profit Margin is 26.89% for FY-2025 , is above with its 5 year median of 4.54%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 40.9 13.1
Operating Profit Margin 44.05 12.4
Net Profit Margin 26.89 4.54
Q.5 Return on Asset of Websol Energy System Ltd?
Websol Energy System Ltd Return on Asset is 36.33(x), which is above its 5 year historical median of 3.39(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Websol Energy System Ltd?
Websol Energy System Ltd Return on equity is 83.7% for FY-2025 , which is above its historical median of 5.29%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Websol Energy System Ltd?
Websol Energy System Ltd Return on capital employed is 59.38% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Websol Energy System Ltd?
Websol Energy System Ltd Cash conversion cycle is -24 , below its historical median of 17 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.35 0.52
ROE 83.7 5.29
ROCE 59.38 7.75
Cash Conversion Cycle -24 17
Q.9 Debt to Equity ratio of Websol Energy System Ltd?
Websol Energy System Ltd Debt-to-Equity ratio is 0.58 , which is above with the industry average of 0.25 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Websol Energy System Ltd?
Websol Energy System Ltd Debt to cash flow from operations is 0.91 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Websol Energy System Ltd?
Promoters hold 27.71% of the Websol Energy System Ltd, with 88.12% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Websol Energy System Ltd vs industry peers?
Websol Energy System Ltd revenue CAGR is 24.10% , compared to the industry median CAGR of 3.89% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 575.5 41.9
Gross Profit 235.2 5.3
Operating Profit 253 5.2
Net Profit 155 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.35 0.79
ROE 83.7 7.33
ROCE 59.38 9.29
Cash Conversion Cycle -24.03 121

Valuation & price assessment

Q.1 Stock return of Websol Energy System Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 30.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 30.9% 78.7% 114.1% -36.4%
Q.3 Valuation ratios of Websol Energy System Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 15.12 7.60 44.31
Price to Book 6.59 0.51 4.02
Price to Sales 4.18 0.40 4.15
EV to EBITDA 9.6 6.86 23.98

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