Alpex Solar (ALPEXSOLAR)

FairStock Score: 68/100 — STEADY

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

Key Financials

Strengths

• ROCE at 50.48% demonstrates superb capital efficiency and pricing power.
• Sales growth of 245.40% and profit growth of 135.04% show rapid scaling.
• P/E of 10.61 and PEG of 0.06 suggest significant undervaluation relative to recent growth.
• Promoter holding of 65.89% aligns majority and minority interests.
• Piotroski F-Score of 7/9 indicates solid overall financial health.

Concerns

• Zero dividend yield means no income cushion; total reliance on future capital appreciation.
• Book value and debt/equity are unavailable, so downside protection and leverage cannot be assessed.
• 52-week range of ₹660.00 - ₹1376.75 highlights high volatility and possible cyclicality.
• 245% sales growth is unsustainably high and likely to face reversion, especially in a competitive solar equipment market.

AI Analysis

As a value investor, I look for businesses that combine a decent moat with sensible capital allocation. Alpex Solar catches my eye. A ROCE of 50.48% is exceptional; it tells me management is deploying capital well. Sales growth of 245.40% and profit growth of 135.04% are extraordinary, but I immediately ask: is this durable or a solar industry tailwind? The latest quarter shows sales of ₹648 Cr and net profit of ₹54 Cr. Annualized roughly, that puts the ₹1,966 Cr market cap at under 10 times earnings — cheap if this pace continues. But I am wary when growth is this fast; such momentum often reverts. The lack of book value, debt figures, and ROE data makes a full Graham-style margin-of-safety check impossible. That bothers me. A 10.61 trailing P/E and a PEG of 0.06 would suggest the market is underpricing growth, but one must question why. Promoter holding of 65.89% aligns interests, which is positive. The Piotroski F-Score of 7/9 indicates healthy financials, and the FairStock Score of 68/100 calls it steady. Still, there is no dividend; shareholders rely entirely on capital gains. The 52-week range of ₹660 to ₹1376.75 shows real volatility. I would not call this a classic Graham bargain without asset data. It is a fast grower with strong returns, trading at a sensible trailing earnings multiple — if the growth holds. My discipline demands I monitor whether this extraordinary growth is sustainable before making a large commitment.

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