At a Glance:
Sungarner Energies is an SME-listed microcap making UPS, batteries, wires, and EV bits under its SELTRIK brand. It’s also into turnkey solar EPC. Revenues doubled in FY25, but the stock is down 67% from its peak. Why? Let’s do a battery backup test on this one.
🔌 1. What They Do – Sun, Cells, and Sales Pitches
- 🎯 Makes batteries, inverters, solar EPC systems, switchgear, and wires
- 💡 Pushes EV products under its brand SELTRIK
- 🏗️ Provides turnkey solar EPC services – rooftops to utility-scale farms
- 📍 Registered office in Delhi, production hustle in North India
🛠️ Think of it as a mix of Luminous meets Tata Power Solar— but at SME scale.
💹 2. Financials – High Voltage Revenue, Flickering Margins
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM | ROE | ROCE |
|---|---|---|---|---|---|
| FY24 | 17.2 | 1.07 | 11.4% | – | – |
| FY25 | 33.5 | 1.73 | 11.2% | 16.6% | 17.9% |
- 🔋 Revenue nearly doubled YoY (95% TTM growth)
- ⚡ But net profit grew only 62% = margin contraction risk
- EPS FY25 = ₹7.46
💰 3. Valuation – High P/E, Low Float, SME Drama
- CMP: ₹293
- P/E: 39.2x
- Book Value: ₹48.5 → P/BV: 6.04x
- Market Cap: ₹67.9 Cr = still in microcap penny lane
🎯 Fair Value Calculation:
| Scenario | EPS FY26E | P/E | FV |
|---|---|---|---|
| 🧂 Base | ₹8.5 | 25x | ₹212 |
| 🚀 Aggressive | ₹10 | 30x | ₹300 |
| 🧨 Optimistic Bubble | ₹12 | 35x | ₹420 |
🎯 FV Range: ₹212 – ₹420
(CMP ₹293 is mid-range – not super cheap, not overhyped)
🧾 4. Balance Sheet – Grew Fast, Borrowed Faster
- Total Assets jumped 2.2x in FY25 to ₹40 Cr
- Debt rose from ₹5.7 Cr → ₹14.4 Cr 📈
- Equity stable at ₹2.32 Cr (no dilution)
- Reserves: ₹8.92 Cr → healthy profit retention
📉 Cash from ops: –₹5.14 Cr in FY25
🧯 Heavily working capital dependent = red flag zone
⏱️ 5. Working Capital: A Slow Circuit
| Metric | FY24 | FY25 |
|---|---|---|
| Debtor Days | 157 | 209 🔴 |
| Inventory Days | 229 | 206 |
| Payable Days | 60 | 201 ✅ |
| Cash Conversion Cycle | 327 | 214 ✅ |
Customers delay payments, but Sungarner now delays suppliers’ payments too 😬
🧍♂️ 6. Shareholding – No Moves, Just HODL
- Promoter Holding: Constant at 61.49%
- No new dilution, no FII/DII entries yet
- Public holding: 38.5% across 792 shareholders
🧘 Low float = high volatility = 🚀 + 💣
🕳️ 7. Red Flags – Alert Your Inverter
- ❌ Cash flow issues: 2 years of negative cash from operations
- ❌ SME stocks usually low in liquidity
- ❌ Stock is down 67% from ₹909 ATH
- ❌ No dividends, despite profits and EPS > ₹7
- ❌ P/E > 39x is a stretch unless growth sustains
🌞 8. Final Verdict – Solar is Hot, But Stock is Toasty
Sungarner looks exciting on pitch decks but has a few uncharged batteries underneath:
- Yes, revenue doubled ✔️
- Yes, brand in EV/solar is cool ✔️
- But… cash flows weak ❌, P/E expensive ❌, and debt rising fast ❌
Not a scam — but not yet a market darling either. Wait for FY26 earnings or order wins before entering again.
🏷️ Tags:
Sungarner Energies, Solar EPC SME, Inverter Stocks India, EV Battery Manufacturers, SME IPO Watch, EduInvesting Analysis, SELTRIK brand, Fair Value Stock
✍️ Written by Prashant | 📅 June 26, 2025
