1. At a Glance
A ₹666 Cr EV battery + motor company with a powerful 3-year CAGR of 53% in profits and 22% in sales. ROCE? 30%. ROE? 24%. Debtor days rising? Absolutely. Cash flow? Crying. But the order book? Glowing like a fully charged lithium-ion pack.
2. Introduction with Hook
Imagine if Tesla outsourced its battery unit to an SME in India that’s barely five years old, but already flirting with ₹220 Cr in annual revenue. That’s CLN Energy—born in 2019, now supplying lithium-ion battery packs from 2 KWh scooters to 500 KWh solar stations. One day it’s shipping motors for EVs, next day it’s bidding BSNL contracts. You can’t pin this battery down.
- ₹107.91 Cr BSNL battery order
- ROCE of 30.5%
- 3-year ROE average: 33.1%
- EPS = ₹12.24 | P/E = 51.6x
Clearly, the voltage is real—but is it safe to touch?
3. Business Model (WTF Do They Even Do?)
CLN Energy Ltd is a full-stack B2B EV and energy solution company. It doesn’t sell you the EV; it builds the entire inside of it.
Product Verticals:
- Manufactured Goods: Lithium-ion battery packs, electric motors, EV controllers, onboard chargers.
- Traded Goods: Battery Management Systems (BMS), wiring harnesses, control units.
- Services: Customised battery prototypes, EV powertrain design consulting.
Clients & Use Cases:
- Electric 2W, 3W, 4W OEMs
- Solar power systems (stationary batteries)
- Telecom backup (BSNL, etc.)
Business Edge:
- Built-to-spec battery solutions
- Diversified revenue across mobility and stationary applications
- Prototype-to-production model
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM (%) | PAT Margin (%) |
|---|---|---|---|---|---|
| FY22 | 122 | 6 | 4 | 5% | 3.2% |
| FY23 | 129 | 13 | 1 | 10% | 0.8% |
| FY24 | 133 | 19 | 10 | 14% | 7.5% |
| FY25 | 219 | 24 | 13 | 11% | 5.9% |
- Margins stabilizing, revenue rising
- FY25 PAT margin dipped slightly due to increased tax + depreciation
- FY23 was a one-time earnings weirdness (loss due to other income write-off)
5. Valuation
a) P/E Method
- EPS FY25 = ₹12.24
- Apply P/E range 35x–50x for high-growth EV component players
→ FV Range = ₹428 to ₹612
b) EV/EBITDA Method
- EBITDA FY25 = ₹24 Cr
- Apply 20x–25x multiple → EV = ₹480–₹600 Cr
- Debt = ₹16 Cr → Equity = ₹464–₹584 Cr
- Equity per share (11 Cr shares) = ₹422–₹531
CMP = ₹632
Verdict: Slightly overcharged. A solar inverter might be needed.
6. What’s Cooking – News, Triggers, Drama
- BSNL order: ₹107.91 Cr lithium-ion battery supply
- New Acquisition: 40.1% in Electrovault Power → entry into BESS (Battery Energy Storage Systems)
- IPO Impact: Recently listed on SME platform, now looking to up-list
- Debtors ballooned: From 88 to 125 days = Working capital stress
- ESOP scheme: Employee retention game initiated = scale mode ON
7. Balance Sheet
| Item | Mar ’22 | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|---|
| Equity Capital | ₹1 Cr | ₹1 Cr | ₹3 Cr | ₹11 Cr |
| Reserves | ₹2 Cr | ₹2 Cr | ₹10 Cr | ₹84 Cr |
| Borrowings | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹16 Cr |
| Total Liabilities | ₹62 Cr | ₹110 Cr | ₹113 Cr | ₹199 Cr |
Key Highlights:
- Borrowings introduced in FY25 = funding large orders?
- Reserves jumped 8x = retained earnings + IPO proceeds
- Total assets doubled in FY25 = rapid scale-up visible
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow (₹ Cr) |
|---|---|---|---|---|
| FY22 | ₹8 | ₹-9 | ₹2 | ₹1 |
| FY23 | ₹15 | ₹-15 | ₹0 | ₹-0 |
| FY24 | ₹7 | ₹-5 | ₹0 | ₹2 |
| FY25 | ₹-67 | ₹-13 | ₹83 | ₹4 |
Analysis:
- FY25 CFO tanked due to working capital shock (debtor pile-up)
- Raised ₹83 Cr from financing to stay afloat
- Cash position stable, but only thanks to fund infusion
9. Ratios – Sexy or Stressy?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| ROE (%) | 32% | 6% | 28.75% | 24% |
| ROCE (%) | 238% | 146% | 30% | 30.5% |
| Debtor Days | 88.3 | 71 | 68 | 125 |
| Inventory Days | 128 | 102 | 147 | 141 |
| Payables Days | 109 | 183 | 234 | 123 |
| Cash Conv. Cycle | 42 | -10 | -18 | 142 |
Conclusion:
- FY25 working capital efficiency slipped drastically
- ROCE remains strong → still capital-efficient
- Inventory well managed = supply chain optimization in play
10. P&L Breakdown – Show Me the Money
| FY | Sales | EBITDA | EBITDA % | PAT | PAT Margin |
|---|---|---|---|---|---|
| FY23 | ₹129 | ₹13 Cr | 10% | ₹1 Cr | 0.8% |
| FY24 | ₹133 | ₹19 Cr | 14% | ₹10 Cr | 7.5% |
| FY25 | ₹219 | ₹24 Cr | 11% | ₹13 Cr | 5.9% |
Takeaways:
- Margins are healthy but plateauing
- FY25 profit growth slower than revenue = cost pressure?
11. Peer Comparison
| Company | MCap (Cr) | Sales (Cr) | PAT (Cr) | P/E | ROE (%) |
|---|---|---|---|---|---|
| Uno Minda | ₹61,646 | ₹16,774 | ₹936.9 | 65.8 | 17.5 |
| Bharat Forge | ₹58,078 | ₹15,122 | ₹1,007 | 57.6 | 12.3 |
| CLN Energy | ₹666 | ₹219 | ₹13 | 51.6 | 24.0 |
Verdict:
CLN is micro but mighty. Premium valuation justified for its niche and growth—but needs a steady hand on working capital controls.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Mar ’25 |
|---|---|
| Promoters | 72.60% |
| FIIs | 12.60% |
| DIIs | 1.90% |
| Public | 12.90% |
| No. of SH | 863 |
Highlights:
- Strong promoter control → confidence booster
- FII stake = validation for tech + green narrative
- SME tag, but institutional backing? Rare combo.
13. EduInvesting Verdict™
CLN Energy is not your usual battery stock. It’s a lithium-powered juggernaut that’s balancing engineering depth with IPO dazzle. BSNL orders, Electrovault acquisition, and smart product-market fit make it one of the most investable stories in the EV ecosystem—if they can clean up working capital and prove margin consistency.
Verdict:
A real electrifying play, if you’re okay with the occasional circuit breaker.
Metadata
– Written by EduInvesting Research Team | July 13, 2025
– Tags: CLN Energy, EV Battery Stocks, Lithium-ion, Green Energy, SME EV Components, BSNL Contracts, Powertrain Stocks
