Vikram Solar (VIKRAMSOLR)
CyclicalFairStock Score: 62/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹160.15 |
| Market Cap | ₹5,803.11 Cr |
| P/E Ratio | 15.31 |
| ROCE | 26.45% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -87.1% |
| Debt/Equity | 0.2 |
| Sales Growth | 37.9% |
| Promoter Holding | 63.01% |
| 52-Week Range | ₹155.81 — ₹382 |
| Sector | Electrical Equipment |
| Book Value | ₹87.43 |
Strengths
- Strong balance sheet with Debt/Equity of 0.09
- High ROCE of 26.45% indicates efficient capital deployment
- Piotroski F-Score of 7/9 suggests healthy fundamentals
- Promoter holding of 63.01% aligns management with shareholders
- Latest quarter delivered ₹1,106 Cr sales and ₹98 Cr net profit
Concerns
- Sales growth is only 7.79%, while profit growth of 436.33% looks unsustainable from a low base
- No dividend, so shareholders rely entirely on share price appreciation
- P/E of 13.86 may still be expensive if current margins are cyclical peak margins
- Solar industry faces pricing pressure, import competition, and policy-driven volatility
AI Analysis
Vikram Solar shows a balance sheet I can respect: debt-to-equity of just 0.09, a ROCE of 26.45%, and a Piotroski F-Score of 7 out of 9. Those are signs of operational discipline. Promoters holding 63.01% also aligns them with minority shareholders. But in my world, a wonderful business must have pricing power and a durable moat. Solar modules and EPC are competitive, policy-driven, and prone to cyclical booms and busts. The modest sales growth of only 7.79% tells me the topline isn't compounding at a breathtaking pace. The 436.33% jump in profit looks less like a franchise igniting and more like a low-base cyclical recovery. The latest quarter's ₹1,106 Cr sales and ₹98 Cr net profit are encouraging, but I must ask: can margins stay at this level when module prices are under pressure? At ₹227.81, the P/E of 13.86 is not obviously expensive, and P/B of 2.59 is fair for a company earning 26% ROCE. But a zero dividend yield means the market is paying for reinvestment. The 52-week range of ₹155.81 to ₹407.95 reminds me how violently sentiment swings in this sector. A PEG of 0.06 built on 436% growth is meaningless; that growth rate is not normalised. I would need evidence of repeat orders, pricing stability, and better revenue growth before calling this a compounding machine. Right now, this looks like a financially sound cyclical at an interesting price, not an inevitable winner.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer