Check Before You Invest : Insolation Energy Ltd

Q: 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: Is Insolation Energy Ltd a good quality company?

Insolation Energy Ltd is a average quality company, based on a somewhat consistent 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: Is Insolation Energy Ltd undervalued or overvalued?

Insolation 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. Price to Earnings, Current: 607.46, Historic Median: 41.16. Price to Book, Current: 6.94, Historic Median: 11.97. Price to Sales, Current: 27.05, Historic Median: 18.59. EV to EBITDA, Current: 265.94, Historic Median: 237.52

Q: Is Insolation Energy Ltd a good buy now?

Insolation Energy 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

Q: 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: 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: 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: Net Profit Margin of Insolation Energy Ltd?

Insolation Energy Ltd Net Profit Margin is 4.45% for FY-2025, is above its 5-year median of 3.22%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.4, Historic Median: 5.3. Operating Profit Margin (%), Current: 1.06, Historic Median: 4.72. Net Profit Margin (%), Current: 4.45, Historic Median: 3.22

Q: 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: 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.

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 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 Insolation Energy Ltd undervalued or overvalued?

Insolation 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	5-year Historic Median
Price to Earnings	607.46	41.16
Price to Book	6.94	11.97
Price to Sales	27.05	18.59
EV to EBITDA	265.94	237.52

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

Insolation Energy 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

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 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 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.3 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.4 Net Profit Margin of Insolation Energy Ltd?

Insolation Energy Ltd Net Profit Margin is 4.45% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	0.39	2.98
ROE (%)	2.07	17.7
ROCE (%)	3.26	16.27
Cash Conversion Cycle	98 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 Insolation Energy Ltd?

Insolation Energy Ltd Debt-to-Equity ratio is 0.06, which is lower the industry average of 0.25, 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

D: Promoter shareholding and pledge status of Insolation Energy Ltd?

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)

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

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 3.03%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-50.8	3
Gross Profit Growth (%)	60	16
Operating Profit Growth (%)	-75	19.2
Net Profit Growth (%)	66.7	16.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.39	0.79
ROE (%)	2.07	7.33
ROCE (%)	3.26	9.29
Cash Conversion Cycle (days)	98.37	121

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 111.18% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	111.2%	-44.3%

Q.2 Valuation ratios of Insolation Energy Ltd vs historical?

The current P/E ratio of 607.46 is higher than its historical median of 41.16, indicating that the stock is trading above its historical average valuation.

Q.3 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	607.46	41.16	37.32
Price to Book	6.94	11.97	3.80
Price to Sales	27.05	18.59	4.16
EV to EBITDA	265.94	237.52	22.30

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Check Before You Invest : Insolation Energy Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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