Doral Group Renewable Energy Resources (TASE:DORL): Valuation Check After New ₪250m Private Placement

Doral Group Renewable Energy Resources (TASE:DORL) just lined up fresh capital by agreeing to sell over 9 million new shares to MORE Provident Funds and Pension at ₪27.5 each, raising about ₪250 million.

See our latest analysis for Doral Group Renewable Energy Resources.

The private placement lands after a strong run, with a 90 day share price return of 78.12 percent and a one year total shareholder return of 114.72 percent, suggesting momentum is still building rather than fading.

If this deal has you rethinking where growth might come from next, it could be worth scanning fast growing stocks with high insider ownership for other fast moving opportunities.

Yet with Doral still loss making but drawing in long term institutional money at only a slight discount to the market, the real question is whether this signals an undervalued growth story or a market already pricing in tomorrow’s expansion.

Price to sales of 11x, is it justified?

On a price to sales basis, Doral Group Renewable Energy Resources looks cheap versus similar Israeli peers but expensive against the wider Asian renewable energy space.

The price to sales ratio compares the company’s market value to its annual revenue, a useful lens for loss making or early stage renewable developers where earnings are still negative but top line traction matters.

For local investors, Doral’s 11x price to sales looks supportive given peers average 17.5x. This implies the market is not fully matching the premium valuations granted to comparable Israeli renewable names.

Zooming out to the broader Asian renewable energy industry, however, that same 11x multiple towers over the 2.2x regional average. This sharp contrast suggests the market is assigning Doral a rich growth and project pipeline premium that other operators are not enjoying.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to sales of 11x (ABOUT RIGHT)

However, sizeable losses and a lofty sales multiple versus Asian peers mean that any project delays or policy setbacks could quickly challenge today’s growth premium.

Find out about the key risks to this Doral Group Renewable Energy Resources narrative.

Build Your Own Doral Group Renewable Energy Resources Narrative

And if this perspective does not quite fit how you see Doral or you would rather dig into the numbers yourself, you can pull together a fresh narrative in just a few minutes, Do it your way.

A great starting point for your Doral Group Renewable Energy Resources research is our analysis highlighting 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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