Onix Solar (513119)

FairStock Score: 33/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Reported ROCE of 32.41% suggests strong capital efficiency, if earnings quality holds.
• ROE of 367.65% shows the ability to generate profits on a very small equity base.
• Piotroski F-Score of 6/9 provides some short-term fundamental comfort.
• Latest quarter is profitable: ₹14 Cr net profit on ₹16 Cr sales.
• Profit growth of 129.55% may indicate margin expansion or turnaround potential.

Concerns

• P/E of 116.02 and P/B of 47.84 leave no margin of safety at the current price.
• Sales growth of -71.85% indicates the business is shrinking; profit growth may be unsustainable.
• Latest quarter net margin of roughly 87.5% is abnormal for a copper business and raises earnings-quality doubts.
• Zero dividend, undisclosed promoter holding, and N/A debt-to-equity undermine transparency.

AI Analysis

Let me start with what every investor must admit: I know less about this business than I'd like. Onix Solar, in copper, trades at ₹96.15, down from a 52-week high of ₹1,125.90. Mr. Market has clearly soured on it. But a falling price is not automatically a bargain. The P/E is 116 times, and the price-to-book is 47.84 times against a book value of just ₹2.01. Graham would say there is no margin of safety here. The reported ROE of 367.65% and ROCE of 32.41% look dazzling until you realize the equity base is tiny; with book value at ₹2, small absolute profits create huge percentages. Meanwhile, sales have collapsed by 71.85%. I cannot value a business on a trailing P/E when the latest quarter shows ₹16 Cr in sales and ₹14 Cr in profit—that is an 87.5% net margin, not a normal copper business margin. Profit growth of 129.55% on collapsing sales smells of low base, one-offs, or accounting choices, not operational quality. The Piotroski score of 6/9 gives some comfort, but not enough. There is no dividend to protect me, promoter holding is not disclosed, and debt-to-equity is N/A. If I don't know who owns it and how much leverage it carries, I cannot trust the numbers. This is exactly the kind of stock I skip: great-looking ratios, broken fundamentals, and no clear moat. In copper, you are a price taker. Without pricing power, prosperity is cyclical, not durable. The PEG of 0.90 looks cheap only if 129% profit growth is sustainable—but I have no evidence of that. At ₹96.15, the market may be pricing in perfection. As Buffett says, it is better to be approximately right than precisely wrong. Here, I'm not even approximately right. I'll pass.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer