🧠 At a Glance
Websol Energy went from zero revenue to ₹575 Cr in just two years, posted ₹155 Cr PAT in FY25, and saw its stock do yoga from ₹500 to ₹1,900. But here’s the twist: it still has 91.8% of promoter stake pledged, trades at 20x book, and ROE = 80%. Is this India’s SunPower moment or just sunstroke?
1. 🧨 Intro: From BIFR to “Boss, Iska PE Kitna Hai?”
Websol’s comeback could be in a Netflix docu-drama:
- 📉 2019: ₹69 Cr revenue, negative profits, begging for survival
- 📈 2025: ₹575 Cr revenue, ₹155 Cr profit, hot orders, and factories buzzing
The transformation? Blinding.
The stock price? Dazzling.
The fundamentals? Still… puzzling.
2. ☀️ WTF Do They Even Do?
Websol makes crystalline photovoltaic solar cells and PV modules used in:
- 🏭 Industrial solar farms
- 🏘️ Rooftop panels
- 🌍 Exports + domestic projects
⚙️ Capacity Additions:
- New 600 MW cell line commissioned at Falta
- Expansion deals signed with CRI Pumps, Luminous, others
Basically: Solar Cell + Module Producer. Not EPC. Not fancy AI-digital-green-BS. Just hardcore manufacturing.
3. 💸 Financials – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹17 Cr | ₹26 Cr | ₹575 Cr |
| EBITDA | -₹13 Cr | -₹1 Cr | ₹253 Cr |
| Net Profit | -₹24 Cr | -₹121 Cr | ₹155 Cr |
| EBITDA Margin | -74% | -5% | 44% |
| ROE | -6% | -29% | 80.2% |
| ROCE | -11% | -14% | 59.2% |
🚀 TTM Growth:
- Sales: up 20x
- PAT: from -₹121 Cr to +₹155 Cr
- Margins: turned from dark coal to sunshine
Unreal turnaround. But is it sustainable?
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹1,291 |
| EPS (FY25) | ₹35.6 |
| P/E | 36.2x |
| Book Value | ₹64 |
| P/B | 20.2x 🚨 |
| Market Cap | ₹5,604 Cr |
🧮 EduFair Value Range:
If FY26 profit grows 20–25% → ₹180–₹200 Cr PAT
Apply sustainable P/E of 25–30x → MCap = ₹4,500–₹6,000 Cr
So… FV Range = ₹1,040 – ₹1,380
Which means the stock is… pretty much where it should be now (unless another 5x growth is incoming).
5. 🍛 What’s Cooking – News, Triggers, Drama
- 🆕 600 MW line launched at Falta
- 🤝 250 MW deal with CRI Pumps
- 🔌 100 MW order from Luminous
- 🏭 Commercial production started at new Module Line (Aug ’24)
- 📢 FY25 Result: ₹575 Cr revenue, ₹155 Cr PAT
- ⚠️ Resignation of Company Secretary + New internal auditors = governance shuffle
Everything looks peachy… until you check pledge data.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Net Worth | ₹278 Cr |
| Borrowings | ₹153 Cr |
| Total Assets | ₹514 Cr |
| Fixed Assets | ₹290 Cr |
| CWIP | ₹17 Cr |
| Promoter Pledge | 91.8% 😱 |
⚠️ Super asset-light turnaround
⚠️ Pledged promoter shares is red flag #1
⚠️ Reserves rebuilding, but weak past still visible
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | -₹8 Cr | -₹6 Cr | ₹10 Cr | -₹4 Cr |
| FY24 | ₹35 Cr | -₹223 Cr | ₹189 Cr | ₹1 Cr |
| FY25 | ₹167 Cr | -₹86 Cr | -₹35 Cr | ₹47 Cr |
🟢 FY25: Strong cash generation
🟠 FY24: Raised money to expand
🔴 FY23: Basically crawling
But now it’s producing consistent cash — if they don’t screw it up.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 59.2% |
| ROE | 80.2% |
| D/E | ~0.55x |
| OPM | 44% |
| Pledged Holding | 91.8% 🔥 |
| Debtor Days | 3 (!!) |
| Inventory Days | 70 |
| CCC | 7 days 🔥 |
This is… beautiful. Efficiency is unbelievable.
But is it too good to be true?
9. 💰 P&L Breakdown – Show Me the Money
| Item | FY25 |
|---|---|
| Sales | ₹575 Cr |
| Operating Profit | ₹253 Cr |
| Other Income | ₹2 Cr |
| Depreciation | ₹41 Cr |
| Interest | ₹19 Cr |
| PBT | ₹194 Cr |
| PAT | ₹155 Cr |
✅ Clean profit jump
✅ No funny accounting (as of now)
⚠️ Would be great if they started paying dividends — 0% payout is 👎
10. 🧩 Peer Comparison – Who Else in the Game?
| Company | ROCE | OPM | P/E | P/B | MCap |
|---|---|---|---|---|---|
| Websol Energy | 59% | 44% | 36x | 20x | ₹5,600 Cr |
| Waaree Energies | 35% | 18% | 47x | 9.3x | ₹88K Cr |
| Premier Energies | 41% | 27% | 50x | 16x | ₹47K Cr |
| Shilchar Tech | 71% | 30% | 44x | 18.5x | ₹6.4K Cr |
👉 Websol has superior efficiency metrics
👎 But lowest promoter skin in game and highest pledge risk
11. 📦 Misc – Shareholding, Promoters, FII Movement
| Category | Mar ’25 |
|---|---|
| Promoter | 27.71% |
| FII | 4.24% |
| DII | 0.02% |
| Public | 68.04% |
| Pledge | 91.8% |
| Shareholders | 1.27 lakh 🫢 |
⚠️ Promoter stake too low
⚠️ 91.8% of that small stake = pledged
📈 Retailer heaven, institutional ghost town
12. 🧑⚖️ EduInvesting Verdict™
Websol Energy is India’s most dramatic solar comeback story. The numbers are glowing. But:
- ⚠️ Pledged promoter stake = recipe for volatility
- ⚠️ Valuation is rich (P/B 20x)
- ⚠️ Governance red flags linger
✅ But if the business sustains ₹150–₹200 Cr profit and grows another 30–40%, then the rerating already happened — the challenge is not screwing it up.
🧮 EduFair Value Range = ₹1,040 – ₹1,380
✍️ Written by Prashant | 📅 9 July 2025
Tags: Websol Energy, solar turnaround, high ROE stocks, pledged shares, solar panel manufacturers, PV stocks India, EduInvesting
