Indosolar (WAAREEINDO)

FairStock Score: 49/100 — MIXED

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

Key Financials

Strengths

• Strong reported growth: sales up 93.70% and profit up 304.98%, with latest quarter net profit of ₹41 Cr on ₹200 Cr sales.
• Very low leverage: D/E of 0.01 and Piotroski F-Score of 7/9 point to a financially improving balance sheet.
• High ROCE of 77.05% suggests recent capital deployment is generating strong operating returns.
• Promoter holding of 74.93% keeps ownership aligned with minority shareholders.

Concerns

• Free cash flow of -₹71.83 lakh Cr is alarming, even if a data error; reported earnings are not yet proven to convert into cash.
• ROE of -2,177% and P/B of 9.46 highlight a distorted equity base and an expensive price-to-book with little margin of safety.
• Zero dividend yield means all returns depend on continued growth and eventual cash generation.
• Heavy electrical equipment is cyclical and competitive; the ₹282.80–₹725.00 52-week range shows high volatility.

AI Analysis

At ₹463.10, this is not a stock Benjamin Graham would approve of as a net-net: book value is just ₹48.93, so the market is asking me to pay 9.46 times book and receive no dividend. The low P/E of 5.90 and PEG of 0.03 are tempting, and sales growth of 93.70% with profit growth of 304.98% is remarkable. The latest quarter’s ₹200 Cr sales and ₹41 Cr net profit show reported momentum. But value investing requires me to distinguish price from value, and profit from cash. A free cash flow figure of -₹71.83 lakh Cr, even if it is a data error, is a red flag: earnings are not proving to be cash-backed. The -2,177% ROE also tells me the equity base has been distorted by past losses or restructuring; this is the signature of a turnaround, not a predictable compounding machine. On the positive side, the company carries negligible debt (D/E 0.01), has an F-Score of 7/9, and ROCE of 77.05% if sustained is excellent. Promoter holding of 74.93% aligns incentives. However, the heavy electrical equipment industry is cyclical and competitive; a 52-week range of ₹282.80 to ₹725.00 shows how quickly sentiment can swing. I would not treat this as a wonderful business at a fair price until I see free cash flow turn positive and audited accounts confirm the equity quality. This is a turnaround whose early earnings power is real but unproven; I would wait for the right price.

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