NSEI:BRIGHT

Stock Analysis Report

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Executive Summary

Bright Solar Limited manufactures and sells solar pump and solar pumping systems in India. More Details


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.

Share Price & News

How has Bright Solar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRIGHT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

BRIGHT

-2.9%

IN Construction

-4.3%

IN Market


1 Year Return

0.6%

BRIGHT

-33.9%

IN Construction

-1.6%

IN Market

Return vs Industry: BRIGHT exceeded the Indian Construction industry which returned -33.9% over the past year.

Return vs Market: BRIGHT exceeded the Indian Market which returned -1.6% over the past year.


Shareholder returns

BRIGHTIndustryMarket
7 Day2.6%-2.9%-4.3%
30 Day-14.4%-8.3%-4.2%
90 Day-38.7%-1.6%6.6%
1 Year1.9%0.6%-32.6%-33.9%0.2%-1.6%
3 Yearn/a-28.5%-31.5%1.9%-3.0%
5 Yearn/a-9.9%-15.6%38.6%28.4%

Price Volatility Vs. Market

How volatile is Bright Solar's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bright Solar undervalued compared to its fair value and its price relative to the market?

32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRIGHT (₹8) is trading above our estimate of fair value (₹0.83)

Significantly Below Fair Value: BRIGHT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRIGHT is poor value based on its PE Ratio (32x) compared to the IN Construction industry average (12.4x).

PE vs Market: BRIGHT is poor value based on its PE Ratio (32x) compared to the Indian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BRIGHT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BRIGHT's PB Ratio (0.4x) is in line with the IN Construction industry average.


Next Steps

Future Growth

How is Bright Solar forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bright Solar has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Bright Solar performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRIGHT has high quality earnings.

Growing Profit Margin: BRIGHT's current net profit margins (2.2%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: BRIGHT's earnings have declined by 2.2% per year over the past 5 years.

Accelerating Growth: BRIGHT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRIGHT had negative earnings growth (-77.9%) over the past year, making it difficult to compare to the Construction industry average (-16.1%).


Return on Equity

High ROE: BRIGHT's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is Bright Solar's financial position?


Financial Position Analysis

Short Term Liabilities: BRIGHT's short term assets (₹366.5M) exceed its short term liabilities (₹145.8M).

Long Term Liabilities: BRIGHT's short term assets (₹366.5M) exceed its long term liabilities (₹6.0M).


Debt to Equity History and Analysis

Debt Level: BRIGHT's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: BRIGHT's debt to equity ratio has reduced from 148.2% to 1.6% over the past 5 years.

Debt Coverage: BRIGHT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BRIGHT's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Bright Solar current dividend yield, its reliability and sustainability?

1.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRIGHT's dividend (1.25%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: BRIGHT's dividend (1.25%) is low compared to the top 25% of dividend payers in the Indian market (2.32%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BRIGHT has been paying a dividend for less than 10 years.

Growing Dividend: BRIGHT has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), BRIGHT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Piyushkumar Thumar (39 yo)

2.67yrs

Tenure

₹3,450,000

Compensation

Mr. Piyushkumar Babubhai Thumar has been the Chairman and Managing Director of Bright Solar Ltd since January 25, 2018 and has been its Executive & Non Independent Director since April 23, 2010. Mr. Thumar ...


CEO Compensation Analysis

Compensation vs Market: Piyushkumar's total compensation ($USD46.84K) is about average for companies of similar size in the Indian market ($USD48.88K).

Compensation vs Earnings: Piyushkumar's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Piyushkumar Thumar
Chairman & MD2.67yrs₹3.45m66.66%
₹ 108.8m
Keyur Muchhala
Chief Financial Officer0.75yrno datano data
Sahul Jotaniya
Company Secretary & Compliance Officer2.58yrs₹436.00kno data
Vishal Modasariya
Head of Serviceno datano datano data
Viral Shah
Project Head of Solar Rooftop0.67yrno datano data

1.7yrs

Average Tenure

Experienced Management: BRIGHT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Piyushkumar Thumar
Chairman & MD2.67yrs₹3.45m66.66%
₹ 108.8m
Jagrutiben Joshi
Non-Executive & Non-Independent Director2.67yrs₹100.00kno data
Chalapathi Satya Mogalapalli
Non Executive Independent Director2.67yrs₹100.00kno data
Phool Saluja
Non Executive Independent Director2.67yrs₹100.00kno data

2.7yrs

Average Tenure

46.5yo

Average Age

Experienced Board: BRIGHT's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BRIGHT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bright Solar Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bright Solar Limited
  • Ticker: BRIGHT
  • Exchange: NSEI
  • Founded: 2010
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹163.200m
  • Shares outstanding: 20.40m
  • Website: https://www.brightsolar.in

Number of Employees


Location

  • Bright Solar Limited
  • C-1103,Titanium Square
  • Thaltej Cross Road
  • Ahmedabad
  • Gujarat
  • 380059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRIGHTNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2018

Biography

Bright Solar Limited manufactures and sells solar pump and solar pumping systems in India. It is involved in assembling DC/AC solar pumps and solar pump systems under the PUMPMAN, BRIGHT SOLAR, and BRIGHT ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 19:24
End of Day Share Price2020/09/25 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.