Surana Telecom and Power Limited

Utilities — Utilities - Independent Power Producers · NSE

₹15.36−₹0.12 (−0.78%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 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 Surana Telecom and Power Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Surana Telecom and Power Limited engages in the generation of renewable energy in India. The company operates through Renewable Energy (Solar & Wind); and Trading & Others segments.

IndustryUtilities - Independent Power Producers

SectorUtilities

Employees31

Annual revenue₹61 Cr

How does it make money?

Turns over ₹61 Cr a year. Of every ₹100 of sales, about ₹36 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 31 employees supports ₹1.96 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.8%

Net margin35.6%

Revenue / employee₹1.96 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER 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%

ADANI POWER LTDP/E 26.5x · ROE 21.9%

What is its competitive advantage?Little sign of one

Returns on capital of 11.6% 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.

ROCE11.6%

ROE11.9%

Peer median ROE15.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +118% while net margin moved +89% 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+118%

Margin effect+89%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ 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

70/ 100

Good

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

Valuation

77/ 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

7.0x

3Y Median

30.4x

40 monthly readings · mean 27.2x · range 9.1x–64.4x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 77% below its 3y median of 30.4x. 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 66% below the peer median of 20.6x.

vs. its own history

Cheap

30.4x median over 40 months · -77%

vs. sector peers

Cheap

20.6x median of 4 peers · -66%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.0x

P/B

1.30x

EV/EBITDA

51.2x

PEG

0.12

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 4.3% to 11.9%.
Return on capital is rising
ROCE has improved from 5.9% to 11.6%.
Valuation below its historical average
At 7.0x the stock trades 77% below its own median of 30.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 70.1% to 8.8% over 3 years.
Debt is rising
Total debt is up 444% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 554% against revenue growth of 118% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 444% over 3 years, from ₹12 Cr to ₹67 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 61.3 points, from 70.1% to 8.8%.
🔴Receivables growing faster than salesFinancial
Receivables up 554% against revenue up 118% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹118 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 77% 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 66% 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?

Margins are being competed away
EBITDA margin has fallen from 70.1% to 8.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 12.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 554% against revenue up 118%. 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.

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

1Revenue growth stays above 22% a year✓ 29.6% CAGR
Latest reported year was -15.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 12.4x
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✗ -₹118 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 9%✓ 11.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹209 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.0x

Cheap

Cheap against the generic band

P/B Ratio

1.30x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.2

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

11.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-15.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

350.0%

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

-₹118 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹15.36

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

54.5%

Good

Strong bottom-line conversion

Current Ratio

2.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.8 / 16.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹25 Cr	₹16 Cr	₹61 Cr	+29.6%
EBITDA	₹20 Cr	₹15 Cr	₹10 Cr	₹5 Cr	-35.1%
EBITDA Margin	70.1%	60.0%	63.0%	8.8%	—
PAT (Net Profit)	₹5 Cr	₹8 Cr	₹23 Cr	₹22 Cr	+60.1%
EPS	₹0.39	₹0.59	₹1.73	₹1.59	+59.8%
ROE	4.3%	6.0%	15.0%	11.9%	—
ROCE	5.9%	7.1%	16.6%	11.6%	—
Total Debt	₹12 Cr	₹2 Cr	₹6 Cr	₹67 Cr	+75.8%
Free Cash Flow	₹11 Cr	₹15 Cr	-₹4 Cr	-₹118 Cr	—

🟢 Revenue has grown at 29.6% a year over 3 years.

🔴 EBITDA has shrunk at 35.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 70.1% to 8.8% over 3 years (-61.3 pts).

🟢 PAT (Net Profit) has grown at 60.1% a year over 3 years.

🟢 EPS has grown at 59.8% a year over 3 years.

🟢 ROE has risen from 4.3% to 11.9% over 3 years (+7.6 pts).

🟢 ROCE has risen from 5.9% to 11.6% over 3 years (+5.7 pts).

🔴 Total Debt has grown at 75.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹118 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹271 Cr

Total Liabilities

₹78 Cr

Total Debt

₹67 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹29 Cr

Capex

-₹89 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.4%

Corporate Actions

Ex-Dividend Date

23 Sept 2015

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%
ADANI POWER LTD	26.5x	21.9%

Recent News

1 mixed5 general

Here's Why Surana Telecom and Power (NSE:SURANAT&P) Has Caught The Eye Of Investors

Simply Wall Street, 07 Apr

Surana Telecom And Power Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Surana Telecom and Power (SURANAT&P.NS) Edges Lower to ₹15.76, Holding Mid-Range as Traders Watch ₹14.97 Support - Time Weighted Price

https://www.siam.in/, 01 Oct

Surana Telecom & Power closes trading window for Q2FY27 results

scanx.trade, 25 SeptResults

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

Surana Telecom and Power Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Surana Telecom And Power Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-15.6%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟢Financial HealthStrong13/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.4/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 22% a year29.6% CAGR
✓EBITDA margin holds above 7%8.8%
✗Debt / EBITDA falls below 3x12.4x
✗Free cash flow remains positive-₹118 Cr
✓ROCE stays above 9%11.6%