Solex Energy Ltd. (SOLEX) AI Stock Analysis

• Market Cap: ₹10.32B
• Dividend Yield: 0.04%
• Average Volume (3M): 38.72K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.06
• Revenue Growth: 80.97%
• EPS Growth: 393.79%
• Country: IN
• Employees: 877
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): 4.83
• Shares Outstanding: 10,802,489
• 10 Day Avg. Volume: 56,624
• 30 Day Avg. Volume: 38,716
• PEG Ratio: 0.05
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -5.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹1,037.00 ▼(-28.30% Downside)

The score is primarily supported by strong revenue growth and improved margins, but is held back by negative operating/free cash flow and clearly bearish technical conditions. Valuation is neutral-to-moderate, with a supportive dividend yield but a not-low P/E.

Positive Factors

Revenue Growth

Solex's ~81% reported revenue growth reflects rapid demand capture and expanding commercial footprint. Sustained high top-line expansion provides scale economies, supports reinvestment in manufacturing and installations, and underpins long-term competitive positioning in solar markets.

Improving Profitability

Rising gross and net margins indicate durable cost control and pricing power across product, installation and service lines. Improved margins increase internal funding capacity for R&D and capex, making earnings more resilient to cyclical volume swings over the medium term.

High Return on Equity

A 26% ROE signals efficient use of shareholder capital and strong profit generation on invested equity. Persistently high ROE supports attractive capital allocation, helps attract long-term investors, and suggests the business can grow earnings without proportionally large equity raises.

Negative Factors

Negative Cash Flow Conversion

Despite profits, the company reports negative operating and free cash flows, indicating difficulty converting earnings into liquidity. Over months this can constrain capex and working capital, increase refinancing or covenant risk, and force external financing or equity issuance.

Moderate Leverage / Low Equity Ratio

Near 1.0 debt/equity and a one-third equity ratio point to material reliance on debt financing. This reduces financial flexibility, raises interest and refinancing exposure if rates climb, and heightens downside risk if solar project cash flows soften over the medium term.

Policy/Subsidy Dependence

A material portion of revenue relies on government incentives and subsidies. Structural policy shifts or reduced support would compress demand and margins, making long-term revenue visibility and investment returns sensitive to regulatory changes beyond company control.

Solex Energy Ltd. Business Overview & Revenue Model

Company Description

Solex Energy Ltd. (SOLEX) is a leading company in the renewable energy sector, specializing in the development and deployment of solar energy solutions. The company focuses on providing innovative solar technology products and services, including solar panel manufacturing, installation, and maintenance. By leveraging cutting-edge technology and expertise in energy management, Solex Energy aims to deliver sustainable energy solutions for residential, commercial, and industrial applications.

How the Company Makes Money

Solex Energy generates revenue primarily through the sale of solar panels and related equipment, installation services, and ongoing maintenance contracts. The company benefits from government incentives and subsidies for renewable energy projects, which enhance profitability. Key revenue streams include direct sales to consumers and businesses, partnerships with construction firms and energy providers, and service contracts for maintenance and monitoring of solar installations. Additionally, Solex Energy may engage in strategic partnerships with technology firms to enhance its product offerings, further contributing to its revenue growth.

Solex Energy Ltd. Financial Statement Overview

Summary

Strong revenue growth and improving profitability (gross margin 18.34%, net margin 6.35%) support the score, but negative operating/free cash flow and only moderate balance-sheet strength (debt-to-equity 0.92; equity ratio 33.45%) materially reduce it.

Income Statement

Solex Energy Ltd. has demonstrated strong revenue growth, with a significant increase from 2024 to 2025. The gross profit margin improved to 18.34% in 2025, indicating efficient cost management. The net profit margin also increased to 6.35%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, at 9.80% and 11.36% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.92, indicating a moderate level of leverage. The return on equity (ROE) improved to 26.16%, showcasing effective use of equity to generate profits. However, the equity ratio of 33.45% suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Solex Energy Ltd. faces challenges with negative operating and free cash flows in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting difficulties in converting profits into cash. The free cash flow to net income ratio is also negative, suggesting the need for improved cash management strategies.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.62B	3.66B	1.62B	719.20M
Gross Profit	1.21B	514.28M	224.02M	63.59M
EBITDA	752.09M	283.76M	130.40M	20.02M
Net Income	420.28M	87.35M	27.11M	9.88M
Balance Sheet
Total Assets	4.80B	2.12B	1.41B	727.45M
Cash, Cash Equivalents and Short-Term Investments	120.47M	121.92M	1.33M	3.40M
Total Debt	1.47B	961.60M	659.41M	194.24M
Total Liabilities	3.19B	1.66B	1.03B	377.09M
Stockholders Equity	1.61B	462.42M	376.27M	350.36M
Cash Flow
Free Cash Flow	-1.14B	-60.80M	-413.44M	-202.84M
Operating Cash Flow	-474.90M	17.06M	-61.88M	38.48M
Investing Cash Flow	-537.02M	-212.43M	-348.49M	-272.35M
Financing Cash Flow	1.13B	195.94M	407.86M	217.04M

Solex Energy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1446.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOLEX, the sentiment is Negative. The current price of 1446.3 is above the 20-day moving average (MA) of 1092.34, above the 50-day MA of 1352.25, and above the 200-day MA of 1208.68, indicating a bearish trend. The MACD of -102.41 indicates Positive momentum. The RSI at 26.47 is Positive, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOLEX.

Solex Energy Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WEBELSOLAR	61 Neutral	₹34.40B	15.17	―	―	152.12%	―
SOLEX	60 Neutral	₹10.32B	24.55	―	0.04%	80.97%	393.79%
SWELECTES	57 Neutral	₹7.76B	22.96	―	0.47%	39.01%	-42.51%
ZODIAC	57 Neutral	₹3.92B	19.07	―	0.25%	64.71%	48.65%
INDOSOLAR	50 Neutral	₹18.29B	7.48	―	―	2412.32%	―
SURANASOL	45 Neutral	₹1.16B	815.57	―	―	―	―