NSEI:BRIGHT

Stock Analysis Report

Executive Summary

Bright Solar Limited engages in the solar pump and solar pumping system assembling business in India.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

19.8%

BRIGHT

0.2%

IN Construction

3.1%

IN Market


1 Year Return

-67.3%

BRIGHT

6.7%

IN Construction

3.7%

IN Market

Return vs Industry: BRIGHT underperformed the Indian Construction industry which returned 6.7% over the past year.

Return vs Market: BRIGHT underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

BRIGHTIndustryMarket
7 Day19.8%0.2%3.1%
30 Day50.3%4.5%5.7%
90 Day-19.9%-3.0%1.4%
1 Year-66.9%-67.3%8.0%6.7%5.9%3.7%
3 Yearn/a20.9%16.9%22.3%16.0%
5 Yearn/a35.5%28.1%42.5%28.9%

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?

8.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BRIGHT (₹10.9) is trading above our estimate of fair value (₹0.89)

Significantly Undervalued: BRIGHT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRIGHT is good value based on its PE Ratio (8.8x) compared to the Construction industry average (12.9x).

PE vs Market: BRIGHT is good value based on its PE Ratio (8.8x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low 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 is good value based on its PB Ratio (0.6x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

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

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRIGHT's forecast earnings growth (10.4% per year) is above the savings rate (7.6%).

Earnings vs Market: BRIGHT's earnings (10.4% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: BRIGHT's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if BRIGHT's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if BRIGHT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if BRIGHT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bright Solar performed over the past 5 years?

28.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BRIGHT's earnings have grown significantly by 28.9% 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 (-62.3%) over the past year, making it difficult to compare to the Construction industry average (1.1%).


Return on Equity

High ROE: BRIGHT's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: BRIGHT's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: BRIGHT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bright Solar's financial position?


Financial Position Analysis

Short Term Liabilities: BRIGHT's short term assets (₹342.7M) exceeds its short term liabilities (₹124.0M)

Long Term Liabilities: BRIGHT's short term assets (342.7M) exceeds its long term liabilities (3.9M)


Debt to Equity History and Analysis

Debt Level: BRIGHT's debt to equity ratio (1.3%) is considered satisfactory

Reducing Debt: BRIGHT's debt to equity ratio has reduced from 60% to 1.3% over the past 5 years.

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

Interest Coverage: BRIGHT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BRIGHT has a low level of unsold assets or inventory.

Debt Coverage by Assets: BRIGHT's debt is covered by short term assets (assets are 72.064380x debt).


Next Steps

Dividend

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

0.92%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRIGHT's dividend (0.92%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BRIGHT's dividend (0.92%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

Stable Dividend: Too early to tell whether BRIGHT's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BRIGHT's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.1%), BRIGHT's dividend payments are thoroughly 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

What is the CEO of Bright Solar's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Piyushkumar Thumar (38yo)

1.8yrs

Tenure

0

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 ...


Management Age and Tenure

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 Age and Tenure

1.8yrs

Average Tenure

44yo

Average Age

Experienced Board: BRIGHT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sahul Jotaniya

    Company Secretary & Compliance Officer

    • Tenure: 1.7yrs
  • Piyushkumar Thumar (38yo)

    Chairman & MD

    • Tenure: 1.8yrs
  • Dwarkadas Thumar (44yo)

    Whole-Time Director

    • Tenure: 1.8yrs
  • Gaurav Nawab

    Chief Finance Officer

    • Tenure: 1.6yrs
  • Vishal Modasariya

    Head of Service

    • Tenure: 0yrs

Board Members

  • Piyushkumar Thumar (38yo)

    Chairman & MD

    • Tenure: 1.8yrs
  • Dwarkadas Thumar (44yo)

    Whole-Time Director

    • Tenure: 1.8yrs
  • Jagrutiben Joshi (43yo)

    Non-Executive & Non-Independent Director

    • Tenure: 1.8yrs
  • Chalapathi Satya Mogalapalli (48yo)

    Non Executive Independent Director

    • Tenure: 1.8yrs
  • Phool Saluja (64yo)

    Non Executive Independent Director

    • Tenure: 1.8yrs

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: ₹212.160m
  • Shares outstanding: 20.40m
  • Website: https://www.brightsolar.in

Number of Employees


Location

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

Listings

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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:59
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.