Surana Telecom & Power Ltd. (SURANAT&P) AI Stock Analysis

• Market Cap: ₹2.34B
• Dividend Yield: N/A
• Average Volume (3M): 88.10K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.48
• Revenue Growth: 10.89%
• EPS Growth: 129.66%
• Country: IN
• Employees: 17
• Sector: Technology
• Sector Strength: 88
• Industry: Independent Power Producers
• EPS (TTM): 0.30
• Shares Outstanding: 135,759,960
• 10 Day Avg. Volume: 25,162
• 30 Day Avg. Volume: 88,098
• PEG Ratio: 0.76
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 5.58
• P/FCF Ratio: 17.09
• 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: 69 Neutral
• Price Target: ₹19.00 ▼(-4.14% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Surana Telecom & Power Ltd. receives a moderate score due to strong profitability and a solid balance sheet, tempered by declining revenue and negative cash flow trends. The reasonable valuation provides some support, but the lack of technical indicators and earnings call data limits further insights.

Positive Factors

High net profitability

The company reports an unusually high net profit margin (151.1%), indicating strong cost control or high-margin operations. Durable margins provide a buffer against revenue volatility, supporting reinvestment and debt servicing capacity over the medium term.

Low financial leverage

A debt-to-equity ratio of 0.04 and an 87% equity ratio indicate a conservative capital structure. Low leverage gives the company financial flexibility to absorb shocks, access capital for projects, and avoid near-term refinancing pressure, supporting stability over months.

Renewable-focused business model

Focus on renewable power aligns the company with long-term structural demand and regulatory support for clean energy. Durable tailwinds for renewables can improve access to PPAs, financing, and grid integration opportunities over a multi-month horizon.

Negative Factors

Declining revenue trend

A nearly 30% annual revenue drop is a meaningful structural headwind: persistent top-line contraction reduces scale, strains fixed-cost coverage, and makes sustaining current margins and funding new projects more difficult without reversing the revenue decline.

Negative free cash flow

Negative free cash flow and an OCF-to-net-income ratio of 0.15 indicate poor cash conversion. Weak operating cash generation limits internal funding for capex, maintenance and growth, increasing reliance on external financing and elevating liquidity risk over months.

Rising debt level to monitor

Although leverage is low today, the recent rise in total debt is notable given weak cash flow. If revenues and cash generation do not recover, incremental debt could raise interest costs and reduce financial flexibility, pressuring balance-sheet resilience.

Surana Telecom & Power Ltd. Business Overview & Revenue Model

Company Description

Surana Telecom and Power Limited engages in the generation and sale of solar and wind energy, and trading of solar modules in India. The company operates a solar power generation plant with an installed capacity of 23 MW; and wind power generation plant with an installed capacity of 1.25 MW. It also manufactures jelly filled cables, solar photovoltaic modules, aluminum and alloy aluminum rods, optical fiber cables, heat shrinkable joining kits, and CDMA mobile handsets. The company was formerly known as Surana Telecom Ltd and changed its name to Surana Telecom and Power Limited in October 2007. The company was incorporated in 1989 and is based in Hyderabad, India.

How the Company Makes Money

The company primarily makes money by generating electrical power and selling it to off-takers under power purchase arrangements. Revenue is largely driven by (1) sale of electricity: units (kWh) generated from its power assets are billed to customers—typically utilities/distribution companies or other contracted buyers—based on agreed tariffs; (2) operational performance: plant availability, capacity utilization, grid connectivity/curtailment, and resource availability (e.g., solar irradiation or other relevant renewable resource) directly affect the volume of electricity sold and therefore revenue; and (3) realized tariff and contract terms: long-term contracts (where applicable) can provide more predictable pricing, while any merchant/short-term sales (if applicable) would vary with market rates. Specific details such as a segment-wise revenue split, named off-takers, contract tenor, exact tariff structure, and any material partnerships are null because they are not available in the provided prompt.

Surana Telecom & Power Ltd. Financial Statement Overview

Summary

Surana Telecom & Power Ltd. shows strong profitability and a solid balance sheet with low leverage. However, the significant decline in revenue and negative free cash flow growth are concerning and could affect future financial performance.

Income Statement

Surana Telecom & Power Ltd. has experienced a significant decline in revenue, with a revenue growth rate of -29.7% in the most recent year. Despite this, the company maintains strong profitability metrics, with a high gross profit margin and a net profit margin of 151.1%, indicating efficient cost management. However, the declining revenue trend poses a risk to future profitability.

Balance Sheet

The company has a solid equity base with a debt-to-equity ratio of 0.04, indicating low leverage and financial stability. The return on equity is strong at 15.4%, reflecting effective utilization of shareholder funds. The equity ratio of 87% further underscores the company's strong financial position. However, the increase in total debt over the past year warrants monitoring.

Cash Flow

The cash flow situation shows some challenges, with a negative free cash flow growth rate and a negative free cash flow in the most recent year. The operating cash flow to net income ratio is 0.15, suggesting that operating cash flows are not fully supporting net income. This could impact the company's ability to fund operations and growth without external financing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	220.42M	159.21M	252.76M	279.13M	294.46M	292.88M
Gross Profit	154.43M	156.41M	239.77M	275.38M	271.97M	290.29M
EBITDA	78.73M	21.74M	201.87M	185.13M	237.37M	206.87M
Net Income	234.71M	240.52M	80.57M	52.71M	79.16M	34.07M
Balance Sheet
Total Assets	1.97B	1.80B	1.51B	1.51B	1.57B	1.70B
Cash, Cash Equivalents and Short-Term Investments	174.39M	225.14M	85.46M	75.01M	7.27M	30.07M
Total Debt	65.52M	64.28M	22.56M	133.25M	252.01M	446.28M
Total Liabilities	216.03M	91.81M	19.30M	129.82M	257.21M	482.49M
Stockholders Equity	1.62B	1.56B	1.34B	1.23B	1.18B	1.10B
Cash Flow
Free Cash Flow	136.04M	-39.76M	145.68M	109.99M	122.98M	-2.39M
Operating Cash Flow	136.04M	35.05M	146.88M	144.65M	136.71M	167.73M
Investing Cash Flow	-144.81M	-48.60M	-34.43M	-10.89M	83.63M	-186.61M
Financing Cash Flow	-11.78M	30.93M	-109.96M	-128.56M	-228.50M	-8.39M

Surana Telecom & Power Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SURANAT&P	69 Neutral	₹2.34B	8.73	―	―	10.89%	129.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.16B	4.73	―	―	-1.07%	187.83%
MOLDTECH	54 Neutral	₹3.52B	27.63	―	0.63%	-17.65%	-89.27%
AKSHOPTFBR	43 Neutral	₹771.19M	-4.51	―	―	-29.38%	73.60%
ASMS	43 Neutral	₹2.48B	37.09	―	―	―	―