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MoneyWorks4Me

Check Before You Invest : Vikram Solar Ltd

BSE: 544488 NSE: VIKRAMSOLR ISIN: INE078V01014
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Vikram Solar Ltd belong to?
Vikram Solar Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Vikram Solar Ltd a good quality company?
Vikram Solar Ltd is a good quality company, based on a consistently good 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 Vikram Solar Ltd undervalued or overvalued?
Vikram Solar Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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 14.23 -
Price to Book 1.6 -
Price to Sales 0.97 -
EV to EBITDA 4.52 -
Q.4 Is Vikram Solar Ltd a good buy now?
Vikram Solar 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 Vikram Solar Ltd?
Vikram Solar Ltd revenue growth is 40.3% for FY-2026, which is above its 5-year CAGR of 24.43%, indicating faster growth.

Q.2 Gross Profit margin of Vikram Solar Ltd?
Vikram Solar Ltd Gross profit margin which is the profit after deduction of direct costs, is 17% for FY-2026, which is above its 5-year median of 10.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Vikram Solar Ltd?
Vikram Solar Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.87% for FY-2026, which is above its 5-year median of 14.54% indicating increasing margins.

Q.4 Net Profit Margin of Vikram Solar Ltd?
Vikram Solar Ltd Net Profit Margin is 9.8% for FY-2026, is above its 5-year median of 3.17%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17 10.2
Operating Profit Margin (%) 19.87 14.54
Net Profit Margin (%) 9.8 3.17

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vikram Solar Ltd?
Vikram Solar Ltd Return on Asset is 10.99%, which is above its 5-year historical median of 3.15%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vikram Solar Ltd?
Vikram Solar Ltd Return on capital employed is 34.07% for FY-2026, which is above its 5-year historical median of 22.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Vikram Solar Ltd?
Vikram Solar Ltd Return on equity is 21.45% for FY-2026, which is above its 5-year historical median of 16.63%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Vikram Solar Ltd?
Vikram Solar Ltd Cash conversion cycle is 125 days, below its 5-year historical median of 150 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 (x) 1.12 0.99
ROE (%) 21.45 16.63
ROCE (%) 34.07 22.23
Cash Conversion Cycle 125 days 150 days

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

Q.9 Debt to Equity ratio of Vikram Solar Ltd?
Vikram Solar Ltd Debt-to-Equity ratio is 0.03, 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 Vikram Solar Ltd?
Vikram Solar Ltd Debt to cash flow from operations is 0.16, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vikram Solar Ltd?

Q.1 Promoter shareholding and pledge status of Vikram Solar Ltd?
Promoters hold 63.01% of the Vikram Solar Ltd, with 9.24% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vikram Solar Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vikram Solar Ltd vs industry peers?
Vikram Solar Ltd revenue CAGR is 24.43%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 40.3 -
Gross Profit Growth (%) 118.5 52.3
Operating Profit Growth (%) 86.4 33.3
Net Profit Growth (%) 235.7 47.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.12 0.84
ROE (%) 21.45 8.07
ROCE (%) 34.07 9.92
Cash Conversion Cycle (days) 125.49 114

Valuation & price assessment

Q.1 Stock return of Vikram Solar Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -55.98% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -56%
Q.2 Valuation ratios of Vikram Solar Ltd vs historical?
The current P/E ratio of 14.23 is higher than its historical median of , 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 14.23 - 39.08
Price to Book 1.6 - 4.13
Price to Sales 0.97 - 4.09
EV to EBITDA 4.52 - 21.70

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