Solarworld Ene. (SOLARWORLD)

FairStock Score: 55/100 — STEADY

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

Key Financials

Strengths

• Low debt/equity of 0.27 and ROCE of 40.36% indicate efficient use of capital with conservative leverage.
• Piotroski F-Score of 7/9 points to sound financial health across profitability, leverage, and efficiency measures.
• Promoter holding of 65.67% aligns management interests with minority shareholders.
• Sales growth of 183.67% and latest quarter sales of ₹578 Cr reflect strong near-term demand and execution.
• Book value of ₹100.02 gives a tangible base; P/B of 2.03 is not excessive for a growing business.

Concerns

• Reported profit growth of 15.30% is far below sales growth of 183.67%, suggesting margin compression or rising costs.
• Civil construction is a low-moat, cyclical business; past order wins do not guarantee future profitability.
• No dividend yield (0.00%) means shareholders rely entirely on price appreciation.
• P/E of 20.91 is not cheap for a cyclical, and the 52-week range of ₹139.19 to ₹388.50 shows high volatility.

AI Analysis

When I look at Solarworld Ene., I must fight the temptation to be dazzled by a 183.67% sales jump. In my world, sales are vanity, profit is sanity. The latest quarter shows ₹578 Cr sales and ₹49 Cr net profit, but reported profit growth is just 15.30%. That gap tells me this is a project-driven business where scale is being won at the cost of margins. A civil construction company rarely has a durable moat; clients can switch, bids are competitive, and yesterday's order book is not tomorrow's earnings. So I value the balance sheet: debt/equity of 0.27 is conservative, ROCE of 40.36% is genuinely impressive, and a Piotroski score of 7/9 suggests the financial fabric is intact. Promoter holding of 65.67% is a plus; owners have skin in the game. But the absence of a dividend means I must rely on capital gains, and at ₹203.07 the stock trades at a P/E of 20.91 and a P/B of 2.03 against book value of ₹100.02. For a cyclical construction name, that is not obviously cheap. The 52-week range of ₹139.19 to ₹388.50 reminds me that this stock can move violently with sentiment. The PEG of 0.21 looks seductive, but it conflicts with the 15.30% profit growth; I learned to trust audited profit numbers more than a smoothed ratio. FairStock's 55/100 'steady' label seems fair. This is not a business I would bet my lunch money on as a permanent holding. It may be a decent, leveraged-to-growth cyclical if management executes and margins recover. But I need a margin of safety, and a 20.91 P/E in a low-moat industry doesn't give me that today. I will watch from the sidelines until price or fundamentals offer more.

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