NSEI:SOLEX

Stock Analysis Report

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Executive Summary

Solex Energy Limited manufactures and sells solar panels, lamps, and solar instruments in India. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Solex Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.8%

SOLEX

5.7%

IN Semiconductor

-0.6%

IN Market


1 Year Return

21.4%

SOLEX

-43.4%

IN Semiconductor

2.2%

IN Market

Return vs Industry: SOLEX exceeded the Indian Semiconductor industry which returned -43.4% over the past year.

Return vs Market: SOLEX exceeded the Indian Market which returned 2.2% over the past year.


Shareholder returns

SOLEXIndustryMarket
7 Day-7.8%5.7%-0.6%
30 Day7.9%5.1%0.2%
90 Day27.4%-1.5%6.7%
1 Year24.0%21.4%-43.2%-43.4%3.9%2.2%
3 Yearn/a-60.1%-60.3%2.6%-2.4%
5 Yearn/a16.0%14.7%41.3%30.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Solex Energy undervalued compared to its fair value and its price relative to the market?

3.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOLEX (₹29.5) is trading above our estimate of fair value (₹4.57)

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


Price To Earnings Ratio

PE vs Industry: SOLEX is good value based on its PE Ratio (3.3x) compared to the IN Semiconductor industry average (125.1x).

PE vs Market: SOLEX is good value based on its PE Ratio (3.3x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOLEX's PB Ratio (0.7x) is in line with the IN Semiconductor industry average.


Next Steps

Future Growth

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

22.2%

Forecasted Semiconductors 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 Solex Energy 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 Solex Energy performed over the past 5 years?

35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLEX has high quality earnings.

Growing Profit Margin: SOLEX's current net profit margins (3.2%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: SOLEX's earnings have grown significantly by 35.7% per year over the past 5 years.

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

Earnings vs Industry: SOLEX had negative earnings growth (-10.6%) over the past year, making it difficult to compare to the Semiconductor industry average (10%).


Return on Equity

High ROE: SOLEX's Return on Equity (20.1%) is considered high.


Next Steps

Financial Health

How is Solex Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SOLEX's short term assets (₹698.3M) exceed its short term liabilities (₹437.4M).

Long Term Liabilities: SOLEX's short term assets (₹698.3M) exceed its long term liabilities (₹50.7M).


Debt to Equity History and Analysis

Debt Level: SOLEX's debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: SOLEX's debt to equity ratio has reduced from 414.2% to 23% over the past 5 years.

Debt Coverage: SOLEX's debt is well covered by operating cash flow (41.9%).

Interest Coverage: SOLEX's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Solex Energy current dividend yield, its reliability and sustainability?

1.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOLEX's dividend (1.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: SOLEX's dividend (1.69%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


Stability and Growth of Payments

Stable Dividend: SOLEX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SOLEX has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.5%), SOLEX'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

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

2.6yrs

Average board tenure


CEO

Kalpeshkumar Patel (33 yo)

3yrs

Tenure

₹722,400

Compensation

Mr. Kalpeshkumar Ramanbhai Patel has been Managing Director of Solex Energy Limited since October 24, 2017 and also serves as its Chairman. He holds B.com, L.L.B.


CEO Compensation Analysis

Compensation vs Market: Kalpeshkumar's total compensation ($USD9.85K) is below average for companies of similar size in the Indian market ($USD56.07K).

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


Board Members

NamePositionTenureCompensationOwnership
Kalpeshkumar Patel
Chairman & MD3yrs₹722.40k70.43%
₹ 107.0m
Kamlesh Patel
Non-Executive Independent Director3yrsno datano data
Rajeshbhai Patel
Non Executive Independent Director3yrsno datano data
Dharaben Patel
Non-Executive Director2.25yrsno datano data
Vijaykumar Virpara
Non-Executive Director2.25yrsno datano data

2.6yrs

Average Tenure

50yo

Average Age

Experienced Board: SOLEX's board of directors are not considered experienced ( 2.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Solex Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Solex Energy Limited
  • Ticker: SOLEX
  • Exchange: NSEI
  • Founded: 1998
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: ₹151.905m
  • Shares outstanding: 4.94m
  • Website: https://www.solex.in

Number of Employees


Location

  • Solex Energy Limited
  • Plot No. 131/A
  • Phase 1
  • Anand
  • Gujarat
  • 388121
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLEXNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2018

Biography

Solex Energy Limited manufactures and sells solar panels, lamps, and solar instruments in India. It offers solar products, including solar street lighting systems; solar water heaters; submersible and surf ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 13:00
End of Day Share Price2020/10/20 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.