🔍 At a Glance
Once a rising star in the solar EPC space, Ujaas Energy is making headlines again with a near 300% stock rally in 3 years. But behind the scenes, sales have collapsed, and profits are sporadic at best. With working capital days of 828 and debtor days over 300, is this a revival or just another low-float momentum mirage?
🧱 Business Model – WTF Do They Even Do?
Ujaas operates in:
- ⚡ Solar Power Projects – EPC + O&M for third-party clients
- ☀️ Own solar farms – Long-term PPA revenue
- 🔌 Electric Vehicle products – Recent vertical, minimal details
- 🏭 Solar product manufacturing – Panels, structures, inverters (small scale)
They were among India’s first listed pureplay solar companies but lost ground as competition surged and capex dried up.
📊 Financials Snapshot
| Metric | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Sales (₹ Cr) | 50.88 | 35.09 | 44.67 | 30.16 | 26.73 | 26.94 |
| Net Profit (₹ Cr) | -13.35 | -30.43 | -109.7 | -18.06 | 28.96 | 8.85 |
| ROCE (%) | -3.77 | -8.73 | -3.47 | -2.01 | 14.04 | 10.44 |
| OPM (%) | -16.2% | -57.5% | -4.9% | 9.2% | -0.2% | 16.4% |
🧠 Key Insight: Margins and profitability only turned positive after years of bleeding. Turnaround signs exist but sustainability is unclear.
💰 Valuation – Cheap? LOL.
| Metric | Value |
|---|---|
| Market Cap | ₹3,455 Cr |
| P/E Ratio | 390x |
| Book Value | ₹4.77 |
| Price / Book | 65.1x |
📉 This is one of the most expensive stocks in India by book value, and it’s not even a tech company.
🔥 What’s Cooking – News + Events
- 🏭 Sold a factory shed in Indore for ₹32.48 lakh – no operational impact.
- 🎁 Bonus issue (17:25) in June 2025, possibly to fuel market excitement.
- 💸 Earnings still largely driven by “other income”, not core operations.
- 🧾 Working capital bloated – 828 days and growing!
🧾 Balance Sheet Check
| Item | FY25 |
|---|---|
| Equity | ₹10.66 Cr |
| Reserves | ₹74.82 Cr |
| Borrowings | ₹24.00 Cr (down from ₹140 Cr in FY18) |
| Total Assets | ₹112.72 Cr |
| Fixed Assets | ₹29.7 Cr |
✅ Debt almost gone
❌ Reserves still low
⚠️ Asset-light but not cash-rich
💸 Cash Flow – Sab Number Game Hai
- FY24 Cash from Ops: ₹125 Cr
- FY25 Cash from Ops: ₹2.78 Cr
👀 The FY24 number is misleading – it includes massive adjustments and working capital reversals.
📉 Key Ratios
| Ratio | Value |
|---|---|
| Debtor Days | 324 |
| Inventory Days | 903 (!) |
| CCC | 1,168 days |
| ROE (FY25) | 10.1% |
| OPM (TTM) | 16.4% |
| Promoter Holding | 89.98% (Post restructuring) |
🚨 CCC above 1,000 days = suspect working capital, especially with tiny sales base
🧼 Cleaned up shareholding post 2023 – earlier was 99.99% public!
🧾 P&L Breakdown (TTM)
- Sales: ₹26.94 Cr
- Operating Profit: ₹4.41 Cr
- Net Profit: ₹8.85 Cr
- Other Income: ₹7.42 Cr 😬
✅ Margins improved
❌ Core operating profit is just ₹1.4 Cr if you remove “Other Income”
🥊 Peer Comparison
| Company | Sales (TTM ₹Cr) | ROCE (%) | P/E | CMP/BV | Market Cap (₹Cr) |
|---|---|---|---|---|---|
| NTPC | 1.88L | 10.7 | 13.9 | 1.76 | 3.2L |
| Adani Green | 11.2K | 8.7 | 98 | 13.16 | 1.6L |
| JSW Energy | 11.7K | 6.5 | 50 | 3.26 | 89K |
| Ujaas Energy | 26.9 | 10.4 | 390 | 65.1 | 3,455 |
👽 Ujaas is priced like a tech unicorn with none of the scale, moat, or execution.
🧾 Promoters & Shareholding
- Promoter holding now 89.98% (vs. 0.01% till FY23)
- Sudden jump post restructuring – needs deeper analysis if this was a reverse merger, buyback, or just a market play
- Public holding shrunk to 10%
🧠 EduInvesting Verdict™
“Solar Power to the People — But No Profits for the Shareholders.”
Ujaas is a classic low-float rally story:
- Tiny equity base ✅
- Reworked shareholding ✅
- Bonus issue to create hype ✅
- Profitability aided by “other income” ✅
- Peer valuation? Completely disconnected ❌
Fair Value Calculation (based on best-case FY25 PAT of ₹8.85 Cr and 15–20x P/E):
- FV Range = ₹133 Cr – ₹177 Cr market cap
- Per share FV (on 11.11 Cr shares): ₹12 – ₹16
- Current Price = ₹311 = 20x overvalued
🏷️ Tags:
Ujaas Energy, solar stock bubble, SME rally stocks, undervalued solar companies, working capital red flags, momentum stocks India, low float rally stocks, EduInvesting stock roast
✍️ Written by Prashant | 📅 July 3, 2025
