At a Glance
Agni Green Power is in the business of setting up solar PV plants across India, but its real business is bagging more tenders than it can execute. With a ₹53 Cr market cap, 219 debtor days, and barely-there profits, this SME EPC player is a classic “Order Hai, Margin Nahi” case.
1. 🔋 Introduction with Hook
Imagine a solar EPC startup that:
- Wins contracts from WBREDA, POWERGRID, BEL, ONGC, ZEDA, and BRBNMPL
- But consistently struggles to convert all that “sunlight” into actual cash
- Has a P/E of 85, but EPS of ₹0.32
- Raised equity capital like it was collecting Pokémon cards — from ₹0.23 Cr to ₹19.5 Cr over a few years
Welcome to Agni Green Power Ltd — a solar EPC firm where the press releases are sunny, but the balance sheet’s still cloudy ☁️
2. ☀️ WTF Do They Even Do?
Business Model:
- EPC contractor for solar PV systems (Rooftop + Ground Mounted)
- Handles design, engineering, procurement, installation & commissioning
- Offers O&M services for completed projects
- Specializes in government orders, especially in health, education & utility buildings
- Registered MNRE channel partner
- Orders range from 50 kWp rooftops to 3 MWp off-grid projects
In short: A small-cap L&T wannabe, focused on rural and semi-urban solar infra.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹22 Cr | ₹35.3 Cr | ₹41.1 Cr |
| Net Profit | ₹–1.41 Cr | ₹0.38 Cr | ₹0.63 Cr |
| OPM | –0.54% | 5.9% | 6.64% |
| ROCE | 0.56% | 5.34% | 6.94% |
| ROE | Negative | 1.8% | 2.02% |
✅ Gradual recovery from negative margins
❌ But FY25 PAT still < ₹1 Cr on ₹41 Cr revenue — not inspiring
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹27.4
- Market Cap: ₹53 Cr
- EPS (TTM): ₹0.32
- P/E: 84.8x (😂)
- P/B: 1.70
- ROE: 2.02%
🎯 Fair Value Range: ₹10–₹18 (Assuming stable EPS of ₹0.5–₹1 and P/E of 15–20)
You don’t pay NTPC-like P/Es for a company with ₹1.3 Cr EBITDA and ₹219 days in receivables.
5. 🧾 What’s Cooking – News, Triggers, Drama
They’re bagging solar orders like it’s a Flipkart sale:
- ✅ Jun 2025 – ₹1.2 Cr rooftop order from WBREDA (7 plants)
- ✅ May 2025 – ₹4.71 Cr order from POWERGRID (1 MW rooftop)
- ✅ Mar–Apr 2025 – ₹6 Cr+ in orders across Mizoram and BRBNMPL
- ✅ 2024 – ₹8.77 Cr WBREDA plant, ₹2.13 Cr for 38 PV plants, ₹61 lakh BEL maintenance
📣 They’re active in almost every PSU solar scheme in East/Northeast India
But… can they deliver?
6. 💸 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹19.5 Cr | ₹19.5 Cr | ₹19.5 Cr |
| Reserves | ₹10.9 Cr | ₹11.3 Cr | ₹11.9 Cr |
| Borrowings | ₹9.7 Cr | ₹8.9 Cr | ₹9.8 Cr |
| Total Liabilities | ₹44.8 Cr | ₹47.6 Cr | ₹48.9 Cr |
💣 They’re basically operating on borrowed money
🏗️ No CWIP, no new solar plants of their own — all EPC for others
📉 Low asset base, high working capital risk
7. 🧾 Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| Op Cash Flow | ₹–0.02 Cr | ₹1.31 Cr ✅ |
| Investing | ₹–0.15 Cr | ₹0.19 Cr |
| Financing | ₹–2.51 Cr | ₹–1.01 Cr |
FY25 is first proper year of positive op cash flow after YEARS of negative numbers.
Is it sustainable or fluke? We’ll see.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| OPM | 6.64% |
| ROE | 2.02% |
| ROCE | 6.94% |
| D/E | 0.5 |
| Debtor Days | 219 😵 |
| CCC | 219 |
| Working Capital Days | 223 |
They get orders from POWERGRID but payments? That’s slower than an Indian PSU file movement.
9. 💵 P&L Breakdown – Show Me the Money
- FY25 Sales: ₹41.09 Cr
- EBITDA: ₹2.73 Cr
- PAT: ₹0.63 Cr
- Interest Cost: ₹1.96 Cr = 🔥 eating into margins
- Net Profit Margin: 1.53%
Even a tender award celebration party will cost more than that.
10. 🧠 Peer Comparison – Who Else in the Game?
| Peer | MCap | P/E | ROE | OPM |
|---|---|---|---|---|
| NBCC | ₹31K Cr | 51x | 26% | 5.18% |
| Ircon Intl | ₹18K Cr | 25x | 12% | 7.85% |
| Kalpataru Projects | ₹20K Cr | 36x | 9.6% | 9.1% |
| Agni Green | ₹53 Cr | 85x | 2% | 6.64% |
Valuation is like PSU. Margins are like SME. Execution? Work in progress.
11. 📦 Miscellaneous – Shareholding, Promoters, etc.
| Category | Stake |
|---|---|
| Promoters | 70.57% ✅ |
| Public | 29.43% |
| FII/DII | ~0% (some DII trace entries) |
🎯 Stable shareholding
👥 Total shareholders: ~1,060 → micro float
🧑🔬 No known pledging or insider trades
12. 🧠 EduInvesting Verdict™
Agni Green Power is a classic smallcap EPC turnaround attempt:
- Small size
- Big PSU orders
- Razor-thin profits
- Huge working capital cycles
- Valuation straight out of 2021 bull market
What to like:
- Consistent order inflows
- Sector tailwind (solar, renewables)
- OPM improving steadily
What to fear:
- 219 Debtor Days = PSU receivables pain
- Low interest coverage
- Profit < interest = 🚨
- 85x P/E with ₹0.32 EPS? LOL.
🎯 Fair Value Range = ₹10–₹18
(Assuming 10–12x P/E on normalized ₹1–1.5 EPS)
✍️ Written by Prashant | 📅 8 July 2025
Tags: Agni Green Power, solar EPC stocks, SME solar, PSU tenders, rooftop solar India, WBREDA, Mizoram, POWERGRID India, renewable energy India, microcap stock analysis, EduInvesting
