ACME Solar Hold. (ACMESOLAR)

FairStock Score: 50/100 — MIXED

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

Key Financials

Strengths

• Recent sales growth of 66.61% and profit growth of 235.28% show a sharp operational turnaround.
• Promoter holding of 83.29% ensures strong alignment with minority shareholders.
• Piotroski F-score of 7/9 indicates improving fundamentals across profitability, leverage, and efficiency.
• Current price offers a thin 5.51% margin of safety over the Graham number of ₹249.77.

Concerns

• Free cash flow is deeply negative at ₹-2,433 Cr, raising questions about funding capacity.
• High debt-to-equity of 2.72 and Altman Z-score of 1.14 point to significant financial distress risk.
• EV/EBITDA of 375.31 makes the company exorbitantly valued relative to operating earnings.
• Five-year revenue CAGR of -3.65% reveals a volatile earnings history, not a stable compounder.

AI Analysis

Friends, let's look at ACME Solar with clear eyes. The numbers tell a tale of green energy but also red ink. Price ₹309.35, market cap ₹14,301 Cr. The company has turned a corner—sales grew 66.61% and profits exploded 235.28%. Yet the five-year revenue CAGR is -3.65%. So this is a turnaround, not a steady compounder. The past decade saw stagnation; now new capacity may be paying off. But Benjamin Graham would ask: what is the earning power? P/E at 28.50 is rich, and EV/EBITDA of 375.31 is absurd, reflecting massive debt. Debt-to-equity is 2.72—that's leverage worthy of a railroad, not a solar park. Free cash flow is deeply negative at ₹-2,433 Cr. This company is burning cash to grow, and Altman Z-score of 1.14 sits in the danger zone. The Piotroski F-score of 7 gives me some comfort, but cash is king, and here the king is missing. The positive: promoter holding 83.29% means skin in the game. ROE of 10.71% is acceptable, but with 2.72 leverage, shareholders take the risk. The Graham number of ₹249.77 gives a margin of safety of only 5.51% at the current price—hardly a fat discount. In true Graham style, I'd say this is a speculation, not an investment. The growth is real this quarter, but one swallow doesn't make a summer. With 0.08% dividend yield, you get no reward while waiting. I'd keep this on the watchlist, demand a lower price, and insist on seeing positive free cash flow before putting my money to work.

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