🔦 At a Glance
Solex Energy Ltd, an SME rocket that’s already up 100%+ YoY, claims it’ll scale 4 GW solar module capacity by October 2025, backed by a ₹1,500 Cr capex dream. With revenue up 81% YoY, a juicy ROE of 39%, and profit tripling in FY25 — is this a real breakout or just solar flare hype?
1. 🎣 Introduction with Hook
Solar stocks are like gym memberships in January. Everyone wants one, only a few deliver results.
Solex Energy has quietly become a serious contender in India’s solar hardware story — a full-stack module maker + EPC player that has gone from ₹80 Cr topline (FY21) to ₹660 Cr in FY25. Even better? Net profit is up 10x in 3 years.
But now it’s dreaming of gigascale, 4 GW module + cell fab, big-boy capex, and investor meets with words like “backward integration”.
So here’s the question:
Is Solex India’s next solar manufacturing champion…
or just another sunny-side bubble?
2. 🔧 Business Model: WTF Do They Even Do?
Solex operates in two main segments:
- Manufacturing – Solar PV modules
- Mono / Poly crystalline
- 10W to 600W range
- OEM/ODM for Indian & global clients
- EPC Turnkey Projects
- Rooftop solar for resi/commercial
- Industrial and utility-scale solar
- Solar street lighting & home systems
- Government tenders (DISCOMs, MNRE schemes)
📦 Clients: Corporates, govt agencies, solar installers
🏭 Plant: Gujarat (with 600 MW current capacity)
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 80 | 72 | 161 | 366 | 660 |
| Net Profit (₹ Cr) | 2 | 1 | 3 | 9 | 40 |
| OPM (%) | 4% | 3% | 7% | 8% | 10% |
| ROE (%) | 2.7% | 1% | 2.7% | 8.7% | 38.7% 🔥 |
| ROCE (%) | 11% | 4% | 12% | 18% | 28.2% |
📈 Profit CAGR (3Y): 242%
📈 Revenue CAGR (3Y): 109%
🔥 One of the fastest-growing solar manufacturers in India
4. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹1,316
- Market Cap: ₹1,421 Cr
- EPS (FY25): ₹36.66
- P/E: 35.9x
- P/B: 8.98x
📉 Fair Value Range Estimate:
At 20–25x on ₹36.66 EPS = ₹735 – ₹915
🚨 Current P/E (35x) prices in a perfect execution of 4GW expansion. Any slip, and the panel cracks.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 📣 ₹1,500 Cr capex plan to reach 4 GW module + cell manufacturing
- ⚙️ Fully integrated plant under construction — back-end cell line + front-end module
- 📈 Q4FY25 profit up 231% YoY
- 👀 Promoters acquired additional shares in June 2025 at ₹900 — confidence move?
But…
- 🧨 Promoter holding down 4.5% over 3 years
- 🧾 D/E creeping up due to funding capex
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Worth (₹ Cr) | 38 | 46 | 158 |
| Debt (₹ Cr) | 66 | 96 | 148 |
| D/E Ratio | 1.74x | 2.1x | 0.94x |
| Total Assets | 141 | 212 | 467 |
📌 Capex is showing up in fixed assets (₹110 Cr) and working capital buildup. Still asset-light compared to peers.
7. 💸 Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| CFO (₹ Cr) | ₹2 | -₹49 |
| Capex (CFI) (₹ Cr) | -₹21 | -₹54 |
| Financing (CFF) | ₹20 | ₹113 |
| Net Cash Flow | ₹0 | ₹10 |
🧠 High-growth solar = negative FCF, high working capital cycles.
This is expected — but must stabilize post capex.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| OPM % | 10% |
| ROE % | 38.7% |
| ROCE % | 28.2% |
| Cash Conversion | 124 days |
| Inventory Days | 123 |
| Debtor Days | 62 |
Solid ROE + improving margins = green flags
But CCC of 4+ months = needs tight control as scale increases
9. 📊 P&L Breakdown – Show Me the Money
- FY25 revenue: ₹660 Cr (up 81% YoY)
- EBITDA: ₹69 Cr
- Net profit: ₹40 Cr
- EPS: ₹36.66
- Dividend: 2% payout — still reinvesting mode
📈 Every metric is trending up. Classic hockey-stick chart. The question: can it stay up?
10. 🤝 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM % | Sales (₹ Cr) | Mcap (₹ Cr) |
|---|---|---|---|---|---|
| Solex | 35.9 | 39% | 10% | 660 | 1,421 |
| Waaree Renew | 55+ | 24% | 12% | ~3,000 | 11,000+ |
| Adani Green | 90+ | 20% | 36% | 9,000+ | 2.5 L Cr |
| Suzlon | 44.1 | 41.3% | 17% | 10,889 | 91,000 |
📌 Solex has better ROE than Waaree, but 5x smaller in topline
Waaree’s vertical integration & order book is much deeper
11. 👨👩👧👦 Misc – Promoters, Shareholding, Governance
- Promoter holding: 66.15% (down from 70.65%)
- FII holding: Negligible (0.01%)
- DII: 0.79%
- Public: 33%
- Shareholders: 2,917 (up 13x in 2 years)
✅ Promoters recently bought more shares at ₹900
📉 But dilution has happened — watch closely if it continues post capex
12. 🧠 EduInvesting Verdict™
Solex Energy is the dark horse of India’s solar manufacturing surge.
✅ Strong growth
✅ Solid ROE + improving OPM
✅ Ambitious 4GW plan with real capex underway
✅ Promoter skin in the game
But…
⚠️ Priced at perfection (~36x P/E)
⚠️ Cash flows under pressure from capex
⚠️ Execution risk: Capex plans often look better in PPTs than in P&L
🎯 Fair Value Range: ₹735 – ₹915
(Assuming 20–25x on FY25 EPS of ₹36.66)
Verdict™:
Solar ke zamaane mein Solex hai naaraaz toh nahi, bas thoda mehenga hai.
If execution matches ambition, this could become Gujarat’s Waaree 2.0.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Solex Energy, solar stocks, SME multibagger, renewable energy, capex stocks, 4GW module expansion, smallcap solar, India solar manufacturing
