Surana Solar Limited

Technology — Solar · NSE

₹23.40+₹0.65 (+2.86%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by 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, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Surana Solar Limited manufactures and sells solar panels and solar photovoltaic (PV) modules under the Surana Solar brand in India and internationally. It operates through Renewable Energy and Solar Products segments.

IndustrySolar

SectorTechnology

Employees68

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 68 employees supports ₹30.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹30.6 lakh

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 2.9% 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 -51% while net margin moved +10% 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-51%

Margin effect+10%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 21.0% a year
✗ Profit has declined at 18.4% a year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

18.0x

3Y Median

91.8x

40 monthly readings · mean 867.9x · range 51.3x–3239.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 80% below its 3y median of 91.8x. 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 is priced broadly in line with the peer median of 16.5x.

vs. its own history

Cheap

91.8x median over 40 months · -80%

vs. sector peers

Fair

16.5x median of 4 peers · +9%

vs. generic bands

Fair

15x–35x

EV/EBITDA

69.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 5.7% to 7.8% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 5.9% to 2.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 64% against revenue up -51% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 38% against revenue up -51% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 46% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.7% to 7.8%. 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 80% 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?

Sales are being booked faster than collected
Receivables are up 64% against revenue up -51%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 2.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 91.8x✓ 18.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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
✓ 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

3 good · 5 neutral · 3 weak

Market Cap

₹115 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.02x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.3

Profitable

Profitable on a per-share basis

ROE

2.2%

Weak

Weak capital efficiency

ROCE

2.9%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

722.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3600.0%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.1%

Weak

Thin margins leave little room for error

Net Margin

18.1%

Good

Strong bottom-line conversion

Current Ratio

3.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.87

Market-like

Moves roughly in line with the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

24.4 / 25.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹42 Cr	₹18 Cr	₹39 Cr	₹21 Cr	-21.0%
EBITDA	₹2 Cr	₹1 Cr	₹1 Cr	₹2 Cr	-12.1%
EBITDA Margin	5.7%	6.1%	3.8%	7.8%	—
PAT (Net Profit)	₹2 Cr	-₹1 Cr	₹0 Cr	₹1 Cr	-18.4%
EPS	₹0.46	₹-0.26	₹0.01	₹0.25	-18.4%
ROE	4.0%	-2.2%	0.1%	2.2%	—
ROCE	5.9%	-1.5%	0.1%	2.9%	—
Free Cash Flow	₹10 Cr	₹0 Cr	₹0 Cr	-₹11 Cr	—

🔴 Revenue has shrunk at 21.0% a year over 3 years.

🔴 EBITDA has shrunk at 12.1% a year over 3 years.

🟢 EBITDA Margin has risen from 5.7% to 7.8% over 3 years (+2.1 pts).

🔴 PAT (Net Profit) has shrunk at 18.4% a year over 3 years.

🔴 EPS has shrunk at 18.4% a year over 3 years.

🔴 ROE has fallen from 4.0% to 2.2% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 5.9% to 2.9% over 3 years (-3.0 pts).

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹10 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

47.7%

Corporate Actions

Ex-Dividend Date

23 Sept 2015

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

Surana Solar (SURANASOL) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Surana Solar vs Nifty 50: 1Y Return -26.13% vs -10.93%

Univest, 12 Oct

Surana Solar Ltd. Peer Comparison – Compare with Others

Value Research, 14 Sept

Surana Solar files notice for 20th AGM on September 28, 2026

scanx.trade, 28 Sept

Momentum Stocks: DCB Bank, Srinibas Pradhan, Surana Solar gain up to 10% on sheer momentum

Moneycontrol.com, 27 Jul

Surana Solar Share Price Target 2026: Rs 32.6 Analyst Forecast

Univest, 24 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingProfitability

WeakBusiness Quality · Growth · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑