Insolation Ener (543620)

FairStock Score: 69/100 — STEADY

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

Key Financials

Strengths

• Revenue growth of 77.05% and profit growth of 173.57% show strong momentum.
• P/E of 12.48 and PEG of 0.10 indicate the stock is reasonably priced relative to earnings growth.
• ROCE of 34.73% reflects strong return on capital employed.
• Piotroski F-score of 7/9 supports improving operational health.
• Latest quarter sales of ₹575 Cr and net profit of ₹51 Cr confirm current profitability.

Concerns

• P/B of 1,879.97 against book value of ₹1.65 leaves no asset-based margin of safety.
• ROE of 6.31% is weak and inconsistent with the high growth and ROCE, raising questions about equity quality.
• Debt/Equity and promoter holding are N/A, creating transparency gaps on leverage and ownership alignment.
• 52-week range of ₹81 to ₹3,101.95 shows an extreme price move, so much of the good news may already be priced in.

AI Analysis

Let the numbers speak. This is a ₹6,968 Crore market cap power generator. Price is ₹3,101.95, near the top of a 52-week range that began at ₹81. That kind of move demands rigor, not excitement. Sales grew 77.05%, profit grew 173.57%, and P/E is 12.48. If those numbers are honest and repeatable, the market is not paying a ridiculous multiple for earnings. A PEG of 0.10 is strikingly low. But Graham would ask: what is the asset backing? Here book value is only ₹1.65 per share. At ₹3,101.95, I am paying 1,879.97 times book. That removes any margin of safety from the balance sheet. The reported ROE of 6.31% is far lower than I would expect for a business with this growth; ROCE of 34.73% is strong, but the tiny equity base makes these ratios extreme and somewhat contradictory. That contradiction is a red flag. A Piotroski F-score of 7/9 gives me some comfort that operations are improving, but I need more transparency on debt, promoter holding, and how this equity base is being built. Dividend yield is 0.10%, so my return depends almost entirely on the business reinvesting and eventually converting profit into real book value. The latest quarter’s sales of ₹575 Cr and net profit of ₹51 Cr show the business is running, but one quarter does not prove durability. FairStock score of 69/100 is steady, not a ringing endorsement. I would not build a position on these numbers alone. I need multiple years of evidence, a clearer balance sheet, and a price that offers protection if growth slows. As Graham said, price is what you pay, value is what you get. Here I am paying a small earnings multiple but an astronomical book multiple; the margin of safety must come from future growth, and that is a thinner cushion than I like.

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