Ravindra Energy Limited

Technology — Solar · NSE

₹141.50−₹2.32 (−1.61%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

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

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently 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 Ravindra Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ravindra Energy Limited sells solar pumps and setting up of solar generation power plants in India. The company undertakes various projects relating to solar photo voltaic power pumping systems, rooftop solar, and ground-mount solar power projects.

IndustrySolar

SectorTechnology

Employees135

Annual revenue₹563 Cr

How does it make money?

Turns over ₹563 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 135 employees supports ₹4.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.17 Cr

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 10.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +123% while net margin moved +106% 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+123%

Margin effect+106%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.28 — amplifies market moves in both directions
✗ 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

66/ 100

Good

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

Valuation

52/ 100

Fair

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

52.4x

2Y Median

114.0x

29 monthly readings · mean 102.5x · range 36.1x–143.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 54% below its 2y median of 114.0x. 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 217% above the peer median of 16.5x.

vs. its own history

Cheap

114.0x median over 29 months · -54%

vs. sector peers

Expensive

16.5x median of 4 peers · +217%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

23.6x

PEG

0.79

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 15.2% to 24.9% over 3 years.
Return on equity is rising
ROE has improved from 8.1% to 17.3%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 363% over 3 years, from ₹120 Cr to ₹555 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 241% against revenue up 123% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 30% 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 15.2% to 24.9%. 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 54% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 217% above the peer median. That premium needs a reason that persists, or it closes.
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 23% a year✓ 30.6% CAGR
Latest reported year was -26.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹281 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹2,810 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

52.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.95x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.7

Profitable

Profitable on a per-share basis

ROE

17.3%

Strong

Strong capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

-26.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-93.2%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹281 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

22.9%

Good

Healthy core-business profitability

Net Margin

12.5%

Good

Strong bottom-line conversion

Current Ratio

3.18

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.28

Market-like

Moves roughly in line with the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

145.6 / 153.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹253 Cr	₹131 Cr	₹284 Cr	₹563 Cr	+30.6%
EBITDA	₹38 Cr	₹52 Cr	₹54 Cr	₹140 Cr	+54.1%
EBITDA Margin	15.2%	39.3%	18.9%	24.9%	—
PAT (Net Profit)	₹16 Cr	-₹52 Cr	₹21 Cr	₹71 Cr	+66.2%
EPS	₹1.13	₹-3.45	₹1.27	₹3.91	+51.2%
ROE	8.1%	-35.3%	6.4%	17.3%	—
ROCE	10.8%	-9.8%	6.1%	10.5%	—
Total Debt	₹120 Cr	₹159 Cr	₹224 Cr	₹555 Cr	+66.7%
Free Cash Flow	₹84 Cr	-₹15 Cr	-₹106 Cr	-₹281 Cr	—

🟢 Revenue has grown at 30.6% a year over 3 years.

🟢 EBITDA has grown at 54.1% a year over 3 years.

🟢 EBITDA Margin has risen from 15.2% to 24.9% over 3 years (+9.7 pts).

🟢 PAT (Net Profit) has grown at 66.2% a year over 3 years.

🟢 EPS has grown at 51.2% a year over 3 years.

🟢 ROE has risen from 8.1% to 17.3% over 3 years (+9.2 pts).

🟡 ROCE has held roughly flat at 10.5% over 3 years.

🔴 Total Debt has grown at 66.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹84 Cr to -₹281 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,119 Cr

Total Liabilities

₹691 Cr

Cash & Equivalents

₹50 Cr

Operating Cash Flow

₹166 Cr

Capex

-₹448 Cr

Shareholding (proxy)

Institutional Holding

4.0%

Insider Holding

69.3%

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 mixed1 negative4 general

Ravindra Energy's Partner EIM Begins Operations at India's Largest EV Charging Station

scanx.trade, 18 Oct

Ravindra Energy Share Price rise: price action and valuation

Univest, 14 OctPrice 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.

Ravindra Energy invests Rs 150 cr in associate Energy In Motion

scanx.trade, 15 Oct

Ravindra Energy Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Ravindra Energy Co-Promoter Pledges 76 Lakh Shares Representing 3.92% Equity Stake

Sahi, 19 JunOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

For Ravindra Energy Insiders, Selling ₹62m Of Shares Was A Smart Move

Simply Wall Street, 08 Jul

Watch Items

Revenue growth is negative (-26.2%) 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.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑