At a Glance
Ravindra Energy Ltd is in the solar power business — selling solar pumps, setting up rooftop/ground-mounted projects, and now (plot twist) launching electric heavy trucks in India through its associate company. But despite big announcements, its financials haven’t quite caught the same sun rays. With erratic profitability, a 91x P/E, and massive related-party exposure, the stock is more dramatic than a Bollywood climax.
1. 🧲 Introduction with Hook
From solar pumps in rural Maharashtra to electric trucks from China’s FOTON, Ravindra Energy’s business model reads like a startup pitch delivered after 3 Red Bulls.
- Revenue has zig-zagged like a Bitcoin chart 📉📈
- They gave a ₹300 Cr corporate guarantee to a related party 😬
- Yet the stock is up 95% in 1 year 🚀
So…what’s really going on behind the scenes?
2. ⚙️ WTF Do They Even Do? (Business Model)
Ravindra Energy does a bit of everything solar:
- ☀️ Solar Pumps: Empanelled under MNRE (Govt.) with subsidy schemes.
- 🏭 Ground-Mounted & Rooftop Solar Power Plants: Development + Sale of power.
- 💼 Associate Company (Energy in Motion Pvt Ltd): EV partnership with Beiqi FOTON (China) to launch heavy commercial electric vehicles in India starting FY26.
Also dabbles in:
- EPC Services
- Disinvestment of solar SPVs for cash rotation
- Raising funds through preferential allotments
3. 💸 Financials – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales (₹ Cr) | 253 | 131 | 250 |
| Net Profit (₹ Cr) | 17 | -51 | 22 |
| EBITDA Margin (%) | 6% | 26% | 17% |
| ROCE (%) | 10% | 11% | 10% |
| ROE (%) | 11% | -3% | 11% |
| Promoter Holding (FY25) | 64.77% | (↓ from 74.99%) |
🧠 TL;DR: Topline has been shrinking for years. FY24 was a shocker with net loss of ₹51 Cr due to negative other income. FY25 rebounded… but not convincingly.
4. 💰 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Market Cap | ₹2,401 Cr |
| P/E (TTM) | 91x |
| P/B Ratio | 6.94x |
| Book Value | ₹19 |
| CMP | ₹132 |
🤯 Valuation is in la-la land:
- 91x earnings for a loss-making, low-growth utility-style solar firm?
- 7x Book Value when there’s no Moat, No Monopoly, No Mega IP?
🟡 Fair Value Range (based on 12–15x normalized EPS of ₹1.2–1.5): ₹14–₹22
🌈 Versus CMP ₹132 – so yes, this is a valuation acid trip.
5. 🍿 What’s Cooking – News, Triggers, Drama
🔥 Headlines from the Past Year:
- 🧾 ₹300 Cr corporate guarantee to associate Energy in Motion
- ⚡ Exclusive deal with Beiqi FOTON for launching electric trucks in India
- 🔋 Won 100 MW + 44 MW solar projects under Maharashtra PM-KUSUM scheme
- 🔄 Divested solar project subsidiaries to raise cash
- 📈 Preferential issue + capital restructuring + listing on NSE
👀 The EV narrative is being used heavily. But execution remains to be seen. No trucks on roads yet.
6. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings (₹ Cr) | 117 | 148 | 190 |
| Reserves | ₹55 Cr | ₹-7 Cr | ₹160 Cr |
| Equity Capital | ₹138 Cr | ₹154 Cr | ₹179 Cr |
| Cash & Equiv. | ₹47 Cr | ₹69 Cr | ₹128 Cr |
🧨 Jump in reserves in FY25 mainly from equity raise, not profits.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY23 | 122 | -30 | -85 | +7 |
| FY24 | 61 | -81 | +22 | +2 |
| FY25 | 72 | -160 | +147 | +59 |
⚠️ Heavy Capex in FY25 funded by financing inflow — likely for solar and EV capex buildup.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 10% |
| ROE | 11% |
| Debtor Days | 25 Days ✅ (down from 186) |
| Working Capital | 30 Days ✅ (was 153) |
| Inventory Days | 10 Days |
| Days Payable | 65 Days |
🏆 Operational efficiency has improved dramatically in FY25. Credit where due.
9. 📈 P&L Breakdown – Show Me the Money
- Sales grew from ₹131 Cr in FY24 → ₹250 Cr in FY25 (91% growth)
- Operating Profit up to ₹42 Cr
- Net Profit ₹22 Cr
- EPS: ₹1.22 (but skewed by volatile Other Income)
Still, FY25 is the first decent year after many bad ones. Let’s not celebrate just yet.
10. 🧢 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | Sales (Cr) | PAT (Cr) | OPM% | CMP/BV |
|---|---|---|---|---|---|---|
| Ravindra Energy | 91x | 10% | ₹250 | ₹22 | 17% | 6.9x |
| MSTC | 19x | 26% | ₹310 | ₹197 | 57% | 5.1x |
| Redington | 20x | 18% | ₹99,000+ | ₹1,170 | 2% | 2.7x |
| BN Holdings | 119x | 11% | ₹299 | ₹19 | -12% | 6.0x |
📉 Compared to MSTC and Redington, Ravindra’s valuation looks wildly disconnected from fundamentals.
11. 🧾 Miscellaneous – Shareholding, Promoters
- Promoter Holding: ↓ from 74.99% → 64.77% in FY25
(Likely due to capital raise or dilution) - FIIs have entered (3.2% stake), possibly betting on the EV dream
- DIIs also hold 1.36%
- Retail Shareholders: Up from 70K to 82K → the crowd loves drama
12. 🧑⚖️ EduInvesting Verdict™
Ravindra Energy is giving classic “startup with a BSE listing” vibes.
💭 Solar power, EPC, EV Trucks, divestments, capital raises, guarantees to associates — this is a full masala Bollywood thriller. But like every masala film, logic and fundamentals take a backseat.
At 91x earnings, 7x book, with inconsistent financials, Ravindra is priced as if it’s Tesla + Adani Green + BYD combined — but delivers like an engineering student’s final-year project.
👀 EV deal with FOTON could be a game-changer if executed. But right now, the stock is a hope story.
🎯 Fair Value Estimate
- If normalized EPS sustains at ₹1.2–1.5 → 12–15x P/E gives us ₹14–₹22
- Current Price = ₹132
👉 That’s a 6x overvaluation, unless EV dreams come true
✍️ Written by Prashant | 📅 July 10, 2025
Tags: Ravindra Energy, Solar Power, EV Trucks India, PM-KUSUM, Renewable Energy, Foton, Smallcap Stocks, Related Party Transactions, MNRE, Green Energy Stocks, EduInvesting
