EduInvesting 5-Year Recap Series
🔍 At a Glance
Sahaj Solar Ltd has gone from a sleepy SME to a small-cap supernova — clocking 131% profit CAGR and a 64% revenue jump in FY25 alone. From manufacturing solar modules to building entire photovoltaic power plants, the company’s journey from ₹3 crore in FY15 to ₹331 crore in FY25 revenue deserves an honest, solar-powered roast. 🌞💸
☀️ 1. About the Company
Founded in 2010, Sahaj Solar Ltd (SSL) operates across:
- Solar module manufacturing
- EPC services for photovoltaic plants (PV)
- Project development & PPA management
- Customized solar product solutions
While the big boys chase subsidies, SSL has quietly plugged into the MSME socket and scaled up to a 850 MW capacity by Oct 2025.
Business Model in 3 Lines:
- Build solar plants for others.
- Sell solar modules.
- And in classic SME fashion, carry 233 days worth of debtors like it’s Diwali year-round. 🧾💀
👔 2. Key Managerial Personnel (KMP)
- Pramit Brahmbhatt – Promoter & strategic brains behind the expansion.
- High Promoter Holding – 71.28% even post-listing. No dilution carnage yet.
- No big-name FIIs or DIIs, but public shareholding has gone up to 26.87% — retail is biting the solar bait.
📊 3. Financials (5-Year Overview)
🔹 Revenue & Profit Growth (Standalone)
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| FY21 | 55 | 0.4 | 5% | 0.44 |
| FY22 | 66 | 1 | 6% | 0.98 |
| FY23 | 183 | 6 | 6% | 3.70 |
| FY24 | 179 | 12 | 12% | 7.61 |
| FY25 | 307 / 331* | 26 / 28* | 13% | 11.73 |
📌 FY25 company disclosures mention ₹331 Cr in earnings call vs ₹307 Cr in Screener. PAT ~₹28 Cr
- 5Y Revenue CAGR: 58%
- 5Y PAT CAGR: 131% 🧠
- OPM Expansion: From 5% to 13%
- EPS 5x’d in 3 years
🧮 4. Forward-Looking Fair Value (FV) Estimate
Assuming Sahaj Solar can:
- Maintain 13% OPM,
- Clock ₹450–500 Cr revenue in FY26 (50% YoY growth),
- Maintain current tax rates and cost controls.
Forward EPS Estimate (FY26):
₹35–₹40 Cr PAT → EPS = ₹14–₹16
Industry P/E Range: 25–40
SSL Current P/E: 23.4
⚙️ Fair Value Range (FY26E):
₹350 – ₹640
(Current Price: ₹274)
🌞 5. Growth Outlook
- 💼 Order Book ₹304 Cr as of Mar 2025
- 🏗️ Capacity expansion to 850 MW by Oct 2025
- 🔋 Rising Solar Installations across India (esp. Tier-2, Rural Infra) boost EPC demand
- 💸 PLI Schemes (if tapped) could further boost margins
- 👷♂️ CSR/PR Game Strong – frequent updates, visits, media chatter = SME awareness game on point.
But…
Biggest Risk?
Cash stuck with customers = 233 Debtor Days 🤯
They sell solar panels… but collecting money seems harder than launching Chandrayaan-4.
📉 6. Balance Sheet Breakdown (Mar 2025)
| Metric | Value |
|---|---|
| Equity Capital | ₹11 Cr |
| Reserves | ₹94 Cr |
| Total Borrowings | ₹57 Cr |
| Total Assets | ₹298 Cr |
| Cash from Operations | –₹52 Cr (yes, NEGATIVE) |
| Receivables | Off the charts |
⚠️ Red Flag:
- Operating cash flow has been consistently negative.
- Business growing faster than money is entering the bank.
💀 “Sahaj Solar: Where profits are sunny, but cash flows are stormy.”
📈 7. Ratios Snapshot
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 36% | 39% | 32% |
| ROE (%) | 41% | 41% | 38% |
| Debtor Days | 105 | 176 | 233 |
| Inventory Days | 22 | 36 | 29 |
| Payable Days | 124 | 114 | 178 |
| Cash Conversion Cycle | 3 | 98 | 85 |
⚠️ Cash Conversion Crisis incoming?
They’re basically funding clients’ solar dreams on their own dime.
🧠 8. EduInvesting Take
Sahaj Solar is the SME version of a startup on Shark Tank:
- Great pitch,
- Explosive topline growth,
- Strong industry tailwinds,
- But… show me the cash, bro.
Still, the fundamentals are miles ahead of most SME-listed solar players. And they’re priced cheaper too (P/E ~23 vs >40 for peers like Websol, Waaree, Premier Energies).
So yes, if solar is the future, Sahaj might just be the scrappy underdog quietly loading up on orders before a giant PE firm or PSU comes knocking.
But unless they start collecting money from customers… this rocket might run out of fuel. 🔥
🚨 9. Risks & Red Flags
- 🧾 Receivables Monster: 233 days debtor cycle is unsustainable.
- 🧻 Cash Flow Dumpster Fire: Negative CFO for 2 years.
- 🧯 No Dividend Policy yet — growth over payouts.
- 🧠 Interest Capitalization? May be inflating profits.
And finally — it’s an SME stock. Liquidity is thinner than solar film and sudden upper/lower circuits are par for the course.
🏁 Final Verdict:
“Sahaj Solar is what happens when a disciplined Gujarati business mind meets a green energy megatrend… but forgets to follow up on invoice payments.”
📉 Stock Price is up, Profits are up, but until the cash flow catches up, don’t expect the institutions to jump in yet.
This one’s solar with shades on — cool, but risky.
Author: Prashant Marathe
Date: June 7, 2025
Tags: Sahaj Solar, SME Stocks, Solar Energy, Renewable Energy, Cash Flow, EduInvesting 5-Year Recap, SME IPOs
