At a glance
Advait Energy Transitions Ltd has turned from a niche infra EPC player into a smallcap sensation, growing its revenue from ₹28 Cr in FY19 to ₹399 Cr in FY25 — a 14x boom. Profits multiplied too, but the party comes with flashing red lights: high receivables, lofty valuations, and yes — promoters quietly offloading stock. Classic mid-cap drama.
1. ⚡ About the Company
Advait Energy Transitions Ltd (formerly known as Advait Infratech) operates in:
- Power Transmission & Substation EPC (especially live-line reconductoring — a rare niche)
- Telecom infra, including OFC and mobile towers
- Renewable Energy: GH2 infra, solar EPC, battery energy systems
- Turnkey solutions across energy transition needs
They’re pitching themselves as the ‘Bridge to India’s Green Grid’ — from wires to watts to watts-on-wheels.
2. 👨💼 Key Managerial Personnel (KMP)
- Shalin Sheth (CMD) – Electrical engineer, entrepreneur, and now… seller of shares.
- Rejal Sheth (Director) – Also promoter, recently dumped 1 lakh shares.
- AETL’s core team is lean, execution-heavy, and reliant on EPC margins and project wins.
Their recent actions (like insider selling) make the bulls nervous.
3. 📈 Financial Performance (FY21–FY25)
Revenue (₹ Cr)
| Year | Revenue |
|---|---|
| FY21 | ₹66 |
| FY22 | ₹79 |
| FY23 | ₹104 |
| FY24 | ₹209 |
| FY25 | ₹399 |
5-year CAGR = ~55%
A rare smallcap with acceleration post IPO.
Net Profit (₹ Cr)
| Year | PAT |
|---|---|
| FY21 | ₹5 |
| FY22 | ₹5 |
| FY23 | ₹8 |
| FY24 | ₹22 |
| FY25 | ₹32 |
Profit grew ~6x in 5 years. Not jaw-dropping, but steady — until the recent burst.
Margins & Ratios
| Metric | FY25 |
|---|---|
| OPM | 13% |
| ROE | 22% |
| ROCE | 28% |
| EPS | ₹28.6 |
| P/E | 71x |
| Book Value | ₹187 |
| P/B | 10.9x |
🚨 Warning: That P/E and P/B combo screams priced for perfection.
4. 📊 Forward-Looking Fair Value (FV)
Assumptions:
- FY26E PAT: ₹40 Cr
- P/E band: 25x–35x (based on niche growth, with correction risk baked in)
- Market Cap Range: ₹1,000 Cr – ₹1,400 Cr
- Shares: ~1.12 Cr
- FV per share = ₹900–₹1,250
⚠️ Current CMP is ₹2,034 → the stock is trading way above fair value, unless earnings double again.
5. 🔋 Growth Triggers & Outlook
- GH2 EPC orders could explode if govt’s hydrogen push accelerates.
- Battery storage + Solar hybrid tenders could add annuity-style revenue.
- Live-line reconductoring is a cash cow — no shutdowns = premium margins.
- Entering international markets (Middle East, Africa) via tenders.
6. 🧠 EduInvesting Take
Advait is the poster boy of smallcap optimism:
✔️ EPC + Renewables = market frenzy
✔️ High ROCE, growing topline
✔️ Tailwinds from grid expansion and solar push
But…
❌ Promoters have been quietly dumping shares
❌ Receivables at 173 days is ugly, even by EPC standards
❌ Valuation is hyped up beyond fundamentals
This is the kind of stock that wins retail hearts during bull runs…
And breaks them during corrections.
Best analogy?
It’s like a well-dressed guy at a party — charming, sharp, impressive…
But you check his wallet, and half the cash is IOUs from friends who haven’t paid in months.
7. 🚨 Risks & Red Flags
- Receivables risk (173 days) — indicates delayed payments.
- Promoter selling — Shalin & Rejal Sheth reducing stake, raising eyebrows.
- Low dividend payout despite profitability.
- Inventory and debtor cycle volatility — classic EPC problem.
- Insanely rich valuation — 71x P/E in a cyclical business? Ballsy.
TL;DR – Is Advait the next KEI, or a candle waiting to melt?
✅ If you’re looking for the next multibagger in the energy EPC space, Advait looks the part.
❌ But if you believe in buying growth with margin of safety — wait. Or dig deeper into order book execution.
Either way, it’s no longer “undiscovered.”
The market has discovered it. Now it’s your turn to discover whether it’s undervalued growth or overvalued hype.
Author: Prashant Marathe
Date: 13 June 2025
Tags: Advait Energy, Power Infra, Smallcap EPC, GH2 India, EduInvesting, Promoter Selling, Energy Transition Stocks
