Websol Energy (WEBELSOLAR)

FairStock Score: 72/100 — STEADY

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

Key Financials

Strengths

• Sales growth of 77.19% and profit growth of 64.00% show strong current momentum.
• Latest quarter revenue of ₹261 Cr and net profit of ₹65 Cr demonstrate recent execution.
• ROE of 120.29% and ROCE of 59.25% indicate exceptional capital efficiency.
• P/E of 10.15 and PEG of 0.14 make the earnings multiple look reasonable versus growth.
• D/E of 0.41 and Piotroski F-score of 7/9 suggest a manageable balance sheet.

Concerns

• P/B of 23.47 and book value of ₹4.55 provide almost no asset-based margin of safety.
• Promoter holding at 27.71% is moderate to low, raising governance and alignment questions.
• Zero dividend means shareholders rely entirely on future reinvestment and growth.
• Extreme ROE/ROCE levels are rarely sustainable and may attract competition or suffer cyclical reversal.

AI Analysis

Let me look at Websol Energy the way I would any business. The trailing P/E is 10.15, while sales have grown 77.19% and profits 64.00%. That combination gives a PEG of 0.14, so on raw numbers this looks like a fast grower selling at a reasonable earnings multiple. The latest quarter, with sales of ₹261 Cr and net profit of ₹65 Cr, supports that momentum. ROE of 120.29% and ROCE of 59.25% are remarkable; they suggest that every rupee of equity and capital is being put to work very hard. Debt to equity of 0.41 and a Piotroski F-score of 7/9 also tell me the balance sheet is not stretched. But I cannot ignore the asset side. Book value is only ₹4.55 per share, so at ₹106.79 I am paying 23.47 times book. That is a thin cushion and a classic Graham red flag. High returns attract competition, and numbers like this often normalize. Promoter holding of 27.71% is lower than I prefer, and with zero dividend, I depend entirely on management reinvesting at these returns. FairStock score of 70/100 says steady, but I need more clarity on cash flow, order visibility, and whether this profitability is durable. At this price, I am not getting a margin of safety from the balance sheet; the earnings multiple is fine only if growth continues. If it falters, there is little asset support under the share price. I would want a larger margin of safety before committing capital, but I will keep watching.

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