Surana Solar (SURANASOL)

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

Key Financials

Strengths

• Zero debt-to-equity, so no financial leverage risk
• Piotroski F-Score of 6/9 suggests basic financial health is not deteriorating
• Promoter holding of 43.71% aligns owner interests to some extent
• Reported profit growth of 29.41%, though from a small base, shows some cost discipline

Concerns

• P/E of 341.03 and PEG of 11.60 imply an extremely expensive valuation
• Sales growth of -75.94% with latest quarterly sales of only ₹3 crore
• ROE of 0.58% and ROCE of 0.27% indicate very poor capital efficiency
• No dividend yield and zero net profit in the latest quarter offer no income cushion

AI Analysis

When I look at Surana Solar, I start with the balance sheet, and there I find some comfort: debt-to-equity is zero. That means the company is not living on borrowed money. But a clean balance sheet alone does not make a good investment. The business itself earns almost nothing. Return on equity is just 0.58%, and return on capital employed is 0.27%. At a book value of ₹11.29, the market is asking me to pay ₹27.87, or 2.47 times book, for a business that generates negligible returns. The price-to-earnings ratio is 341. That is not a reasonable price unless future earnings explode. Sales have collapsed by nearly 76%, and the latest quarter shows only ₹3 crore in revenue and basically zero net profit. The reported profit growth of 29.41% means very little from such a tiny base. A PEG ratio of 11.60 reinforces that the market's optimism is far ahead of fundamentals. The Piotroski score of 6/9 is mildly encouraging, but not enough to offset the extreme valuation. As Graham would say, the margin of safety is absent. There is no dividend to compensate while I wait. Promoter holding at 43.71% is okay, but minority shareholders are still relying on management to fix the business. This is not a business I can confidently value today. It might be a turnaround candidate, but I need evidence of sustained sales recovery and consistent profits before I commit capital. Until then, the prudent action is to watch and wait.

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