Onix Solar Energy Limited

Technology — Solar · NSE

₹375.80−₹1.85 (−0.49%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Onix Solar Energy Limited a renewable energy company, engages in the solar module manufacturing and renewable energy in India.

IndustrySolar

SectorTechnology

Annual revenue₹165 Cr

How does it make money?

Turns over ₹165 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

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 +692029% while net margin moved -100% 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+692029%

Margin effect-100%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.17 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

58/ 100

Average

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

Valuation

71/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

3.9x

Sector Median

16.5x

median of 4 sector peers

🟢Against its sector it trades 76% below the peer median of 16.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

16.5x median of 4 peers · -76%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

30.1x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -2943.5% to 28.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 55.7% to 4.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 63.3% to 5.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 8566% over 3 years, from ₹1 Cr to ₹50 Cr.
🔴High leverageFinancial
Debt/Equity of 6.56x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹236 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1108% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -2943.5% to 28.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 76% 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?

Leverage amplifies any setback
Debt/Equity of 6.56x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 55.7% to 4.1%. 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
3 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 1354% a year✓ 1805.7% CAGR
Latest reported year was -25.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 28.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹236 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹1,385 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.9x

Cheap

Cheap against the generic band

P/B Ratio

1.63x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹96.62

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

5.7%

Weak

Low return on total capital employed

Debt/Equity

6.56x

High

High leverage

Revenue Growth (YoY)

-25.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

2065.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹180 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.5%

Good

Assets are working hard

Operating Margin

6.5%

Average

Average margins

Net Margin

26.3%

Good

Strong bottom-line conversion

Current Ratio

6.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

RSI (14)

74.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹29 Cr	₹165 Cr	+1805.7%
EBITDA	-₹1 Cr	-₹1 Cr	₹2 Cr	₹48 Cr	—
EBITDA Margin	-2943.5%	-4011.5%	5.2%	28.8%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	₹1 Cr	₹31 Cr	+147.0%
EPS	₹7	₹0.7	₹5.1	—	—
ROE	55.7%	5.3%	26.8%	4.1%	—
ROCE	63.3%	6.7%	28.2%	5.7%	—
Total Debt	₹1 Cr	—	—	₹50 Cr	+342.5%
Free Cash Flow	-₹6 Cr	₹3 Cr	-₹2 Cr	-₹236 Cr	—

🟢 Revenue has grown at 1805.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹48 Cr.

🟢 EBITDA Margin has risen from -2943.5% to 28.8% over 3 years (+2972.3 pts).

🟢 PAT (Net Profit) has grown at 147.0% a year over 3 years.

🔴 ROE has fallen from 55.7% to 4.1% over 3 years (-51.6 pts).

🔴 ROCE has fallen from 63.3% to 5.7% over 3 years (-57.6 pts).

🔴 Total Debt has grown at 342.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹865 Cr

Total Liabilities

₹91 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹236 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.9%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Onix Renewable increases stake in Onix Solar to 51.73% via open market

scanx.trade, 14 Oct

ONIXSOLAR Stock Price and Chart — NSE:ONIXSOLAR

TradingView, 17 Aug

how Fair Value spotted Onix Solar’s 53% decline 5 months early

Investing.com India, 20 Aug

Onix Solar Energy Board Meets on July 15, 2026 to Approve Q1 Results

Sahi, 15 JulResults

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

Onix Solar Energy Ltd (NSE: ONIXSOLAR) Declines 4.99% as Stock Draws Market Attention

Kalkine India, 23 Sept

How Onix Renewable is getting listed without an IPO

UnlistedZone, 15 Jun

Watch Items

Revenue growth is negative (-25.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Growth · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑