GK Energy Limited

Utilities — Utilities - Renewable · NSE

₹107.40−₹1.36 (−1.25%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of GK Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GK Energy Limited engages in the design, manufacture, supply, transport, installation, testing, and commissioning of decentralized solar systems in India. It offers solar agriculture pumps, solar photovoltaic modules, solar water pump controllers, and solar rooftops.

IndustryUtilities - Renewable

SectorUtilities

Employees150

Annual revenue₹1,714 Cr

How does it make money?

Turns over ₹1,714 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 150 employees supports ₹11.42 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin18.5%

Net margin11.9%

Revenue / employee₹11.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NTPC LTDP/E 11.0x · ROE 13.7%

POWER GRID CORP. LTD.P/E 14.6x · ROE 15.8%

TATA POWER CO LTDP/E 29.3x · ROE 9.8%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 34.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.0% against a peer median of 13.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE34.6%

ROE23.0%

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +501% while net margin moved +237% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+501%

Margin effect+237%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.3x

1.3Y Median

18.9x

15 monthly readings · mean 18.2x · range 9.9x–31.3x

Sector Median

14.6x

median of 3 sector peers

🟢Current valuation is approximately 51% below its 1.3y median of 18.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 36% below the peer median of 14.6x.

vs. its own history

Cheap

18.9x median over 15 months · -51%

vs. sector peers

Cheap

14.6x median of 3 peers · -36%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.3x

P/B

2.46x

EV/EBITDA

6.5x

PEG

0.05

Dividend Yield

0.47%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.0% to 18.5% over 3 years.
High return on capital employed
ROCE of 34.6% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 9.3x the stock trades 51% below its own median of 18.9x.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Debt is rising
Total debt is up 382% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 50.7% to 23.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 60.0% to 34.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 382% over 3 years, from ₹43 Cr to ₹205 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.0% to 18.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 51% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 50.7% to 23.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 61% a year✓ 81.8% CAGR
Latest reported year was 55.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹49 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 32%✓ 34.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹2,178 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.3x

Cheap

Cheap against the generic band

P/B Ratio

2.46x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.51

Profitable

Profitable on a per-share basis

ROE

23.0%

Strong

Strong capital efficiency

ROCE

34.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

55.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

34.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹49 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹107.4

Operating Margin

16.1%

Good

Healthy core-business profitability

Net Margin

12.0%

Good

Strong bottom-line conversion

Current Ratio

2.95

Comfortable

Healthy short-term liquidity

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

116.8 / 123.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

13.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹285 Cr	₹411 Cr	₹1,094 Cr	₹1,714 Cr	+81.8%
EBITDA	₹17 Cr	₹55 Cr	₹202 Cr	₹316 Cr	+164.1%
EBITDA Margin	6.0%	13.3%	18.4%	18.5%	—
PAT (Net Profit)	₹10 Cr	₹36 Cr	₹133 Cr	₹204 Cr	+172.6%
EPS	₹0.5	₹1.78	₹6.57	₹10.9	+179.9%
ROE	50.7%	64.5%	63.7%	23.0%	—
ROCE	60.0%	70.8%	90.1%	34.6%	—
Total Debt	₹43 Cr	₹62 Cr	₹218 Cr	₹205 Cr	+68.9%
Free Cash Flow	-₹15 Cr	-₹10 Cr	-₹103 Cr	-₹49 Cr	—

🟢 Revenue has grown at 81.8% a year over 3 years.

🟢 EBITDA has grown at 164.1% a year over 3 years.

🟢 EBITDA Margin has risen from 6.0% to 18.5% over 3 years (+12.4 pts).

🟢 PAT (Net Profit) has grown at 172.6% a year over 3 years.

🟢 EPS has grown at 179.9% a year over 3 years.

🔴 ROE has fallen from 50.7% to 23.0% over 3 years (-27.7 pts).

🔴 ROCE has fallen from 60.0% to 34.6% over 3 years (-25.4 pts).

🔴 Total Debt has grown at 68.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,305 Cr

Total Liabilities

₹418 Cr

Total Debt

₹205 Cr

Cash & Equivalents

₹335 Cr

Operating Cash Flow

₹50 Cr

Capex

-₹99 Cr

Shareholding (proxy)

Institutional Holding

3.3%

Insider Holding

82.2%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

24 Aug 2026

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%

Recent News

1 positive2 mixed3 general

GK Energy vs Nifty 50: Share Price Performance Compared

Univest, 25 Sept

GKENERGY Stock Price and Chart — NSE:GKENERGY

TradingView, 22 Jun

GK Energy wins ₹455 crore solar project; shares trade lower, check details of second order in a week

Upstox, 27 AugOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

GK Energy Shares Rise 7% on Rs 43 Cr Yearly BESS Deal

Equitypandit, 21 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Could The Market Be Wrong About GK Energy Limited (NSE:GKENERGY) Given Its Attractive Financial Prospects?

Simply Wall Street, 12 Jan

GK Energy Reports Q1 Revenue Of ₹500 Crore vs ₹320 Crore YoY

Sahi, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate12.6/20

🟢Financial HealthStrong13/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.4/15

🟢ValuationAttractive11.8/15

🔴RiskHigh2.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 61% a year81.8% CAGR
✓EBITDA margin holds above 16%18.5%
✗Free cash flow remains positive-₹49 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 32%34.6%