Ujaas Energy Limited

Technology — Solar · NSE

₹192.00−₹4.99 (−2.53%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ujaas Energy Limited engages in the generation of solar power in India. It operates through Solar Power Generation and Maintenance; Manufacturing and Sale of Solar Power Plant; and Electric Vehicle (EV) segments.

IndustrySolar

SectorTechnology

Employees77

Annual revenue₹17 Cr

How does it make money?

Turns over ₹17 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹-0 left at the operating level before interest, tax and depreciation. Each of its 77 employees supports ₹21.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.6 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 5.5% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -44% while net margin moved -131% 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-44%

Margin effect-131%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 17.7% a year

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

25/ 100

Expensive

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

1920.0x

2Y Median

458.8x

28 monthly readings · mean 729.3x · range 312.3x–2484.9x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 318% above its 2y median of 458.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 11502% above the peer median of 16.5x.

vs. its own history

Expensive

458.8x median over 28 months · +318%

vs. sector peers

Expensive

16.5x median of 4 peers · +11502%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 77% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -36.3% to 3.6%.
Return on capital is rising
ROCE has improved from -5.9% to 5.5%.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.1 points, from 10.7% to -0.4%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21044% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 77% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.7% to -0.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 318% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1EBITDA margin holds above -2%✓ -0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 5.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 458.8x✗ 1920.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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 · 2 neutral · 4 weak

Market Cap

₹2,561 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1920.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

28.89x

Rich

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

EPS (TTM)

₹0.1

Profitable

Profitable on a per-share basis

ROE

3.6%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

14.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

286.3%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-96.0%

Weak

Thin margins leave little room for error

Net Margin

23.1%

Good

Strong bottom-line conversion

Current Ratio

2.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

190.8 / 205.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹30 Cr	₹26 Cr	₹27 Cr	₹17 Cr	-17.7%
EBITDA	₹3 Cr	₹24 Cr	₹7 Cr	-₹0 Cr	—
EBITDA Margin	10.7%	90.8%	27.8%	-0.4%	—
PAT (Net Profit)	-₹18 Cr	₹29 Cr	₹9 Cr	₹3 Cr	—
EPS	₹-95.24	₹0.25	₹0.26	₹0.08	—
ROE	-36.3%	32.5%	10.4%	3.6%	—
ROCE	-5.9%	10.0%	12.9%	5.5%	—
Total Debt	₹106 Cr	₹19 Cr	₹24 Cr	₹24 Cr	-39.0%
Free Cash Flow	-₹1 Cr	₹122 Cr	₹2 Cr	₹4 Cr	—

🔴 Revenue has shrunk at 17.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹3 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 10.7% to -0.4% over 3 years (-11.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹18 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-95.24 to ₹0.08.

🟢 ROE has risen from -36.3% to 3.6% over 3 years (+39.9 pts).

🟢 ROCE has risen from -5.9% to 5.5% over 3 years (+11.3 pts).

🟢 Total Debt has shrunk at 39.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹117 Cr

Total Liabilities

₹28 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

98.6%

Corporate Actions

Ex-Dividend Date

11 Sept 2017

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

2 positive2 mixed2 general

Ujaas Energy Share Price and Technical Analysis

Kalkine India, 12 Oct

Ujaas Energy Ltd. Share Price Jumps to New 52-Week Peak

Univest, 11 AugPrice 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.

Ujaas Energy Q1FY27 net profit rises 31% on other income surge

scanx.trade, 30 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

892% Gains In 3 Months, Turns Rs 5,000 To Rs 50,000; Smallcap Energy Co To Declare Bonus Shares Next Week

Goodreturns, 17 Oct

Weekly Winner: Ujaas Energy jumps 68% this week as upbeat Q1 earnings fuel buying

Livemint, 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.

Ujaas Energy Ltd Upgraded to Sell as Technicals Improve Amid Weak Fundamentals

MarketsMojo, 12 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Profitability

MiddlingBusiness Quality

WeakGrowth · Valuation · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 4 tripwires tripped — ROCE stays above 8%; Valuation vs its own median of 458.8x · see Key things to watch ↑