8 months ago
Solex Energy: India's Stealth Solar Stock
Solex Energy is a small company in India that makes solar panels.
It has grown a lot in the last few years because the Indian government wants more solar energy.
The company is efficient and makes good profits.
It has big plans to grow even more, but there are some risks like competition from China and changes in the market.
Investors should be careful but might want to watch this company because it could do well in the future.
Solex Energy has seen a 4,000% return over five years, with a share price of Rs 1,251 as of January 2026.
The company has a 10-year average ROCE of 24% and a ROE of 39% in FY25, indicating strong capital efficiency.
Sales grew at a 37% CAGR from FY20 to FY25, with EBITDA and profits growing at 58% and 55% CAGR respectively.
Solex is expanding its manufacturing capacity to 4 GW and has a strong order book, including a Rs 450 cr order from KPI Green Energy.
The company faces risks such as quarterly earnings volatility, dependence on Chinese supplies, and high valuation.
- Who
- Solex Energy Ltd, a small-cap solar energy company in India
- What
- A company manufacturing solar photovoltaic modules and involved in EPC contracts
- Where
- India, with manufacturing operations in Surat
- When
- Current data as of January 2026, with historical data from FY20 to FY25
- Why
- To capitalize on India's renewable energy targets and government incentives
Optimistic View
Cautious View
Growth Potential
Optimistic View
Strong growth potential due to increasing demand for solar energy and government incentives.
Cautious View
Risks include quarterly earnings volatility and dependence on Chinese supplies.
Valuation
Optimistic View
High valuation justified by strong financial performance and future growth prospects.
Cautious View
High valuation may be a concern for some investors.
Key facts
- Current Share Price
- Rs 1,251 (as on 5th January 2026)
- Market Cap
- Rs 1,356 cr
- 10-Year Average ROCE
- 24%
- FY25 ROE
- 39%
- FY20-FY25 Sales Growth
- 37% CAGR
- FY20-FY25 EBITDA Growth
- 58% CAGR
- FY20-FY25 Profit Growth
- 55% CAGR
- FY25 Order Book
- Rs 175 cr
- Recent Large Order
- Rs 450 cr from KPI Green Energy (May 2025)
- FY26 Revenue Guidance
- Rs 2,200–2,400 cr
- FY27 Revenue Guidance
- Rs 3,000–3,400 cr
- EBITDA Margin Target
- 9-11%
- Promoter Holding (Sept 2025)
- 66%
Quotes
Tata Power Solaroof
A division of Tata Power Renewable Energy Ltd (TPREL)
“During this period, Tata Power Solaroof added more than 1.7 lakh installations, registering 345 percent year-on-year (YoY) growth compared to 38,494 installations in the corresponding period of FY25”
businesstoday.in
Sources
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