Vikram Solar Limited

Technology — Solar · NSE

₹143.98+₹1.61 (+1.13%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vikram Solar Limited engages in the manufacture and sale of solar photovoltaic modules/systems in India and internationally. It also engineering, procurement and construction (EPC) and operation and maintenance of solar power plant.

IndustrySolar

SectorTechnology

Employees2,946

Annual revenue₹4,802 Cr

How does it make money?

Turns over ₹4,802 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 2,946 employees supports ₹1.63 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.63 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?Some evidence

ROCE of 20.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 30.6% and earnings to grow about 99.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+30.6%

Est. earnings growth+99.5%

Analysts6

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +132% while net margin moved +1301% 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+132%

Margin effect+1301%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small 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

76/ 100

Good

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

Valuation

79/ 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

14.3x

1.3Y Median

51.5x

16 monthly readings · mean 48.3x · range 10.6x–87.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 72% below its 1.3y median of 51.5x. 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

51.5x median over 16 months · -72%

vs. sector peers

Fair

16.5x median of 4 peers · -14%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.2x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 8.9% to 19.5% over 3 years.
Debt is being paid down
Total debt is down 19% over 3 years.
Return on equity is rising
ROE has improved from 4.0% to 14.9%.
Return on capital is rising
ROCE has improved from 10.0% to 20.5%.
High return on capital employed
ROCE of 20.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹93 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.9% to 19.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 19% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 72% 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.
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?

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
Small 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 24% a year✓ 32.3% CAGR
Latest reported year was 37.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹93 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹5,217 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.3x

Cheap

Cheap against the generic band

P/B Ratio

1.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.09

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

20.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

37.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-87.1%

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

-₹93 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

8.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

153.4 / 162.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,073 Cr	₹2,511 Cr	₹3,423 Cr	₹4,802 Cr	+32.3%
EBITDA	₹184 Cr	₹383 Cr	₹493 Cr	₹937 Cr	+72.1%
EBITDA Margin	8.9%	15.2%	14.4%	19.5%	—
PAT (Net Profit)	₹14 Cr	₹80 Cr	₹140 Cr	₹470 Cr	+219.0%
EPS	₹0.4	₹2.2	₹3.87	₹13.6	+223.8%
ROE	4.0%	17.9%	11.3%	14.9%	—
ROCE	10.0%	20.0%	23.5%	20.5%	—
Total Debt	₹792 Cr	₹854 Cr	₹272 Cr	₹645 Cr	-6.6%
Free Cash Flow	₹64 Cr	₹80 Cr	₹148 Cr	-₹93 Cr	—

🟢 Revenue has grown at 32.3% a year over 3 years.

🟢 EBITDA has grown at 72.1% a year over 3 years.

🟢 EBITDA Margin has risen from 8.9% to 19.5% over 3 years (+10.6 pts).

🟢 PAT (Net Profit) has grown at 219.0% a year over 3 years.

🟢 EPS has grown at 223.8% a year over 3 years.

🟢 ROE has risen from 4.0% to 14.9% over 3 years (+10.9 pts).

🟢 ROCE has risen from 10.0% to 20.5% over 3 years (+10.5 pts).

🟢 Total Debt has shrunk at 6.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹64 Cr to -₹93 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,728 Cr

Total Liabilities

₹2,561 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

₹630 Cr

Capex

-₹722 Cr

Shareholding (proxy)

Institutional Holding

3.7%

Insider Holding

64.9%

Analyst Consensus

Recommendations

3 Buy · 1 Hold · 2 Sell

Target Price (Mean)

₹191.83

+33.2% vs CMP

Target Range

₹127 – ₹267

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 positive2 mixed3 general

Waaree vs Premier vs Vikram Solar: Which Renewable Energy Equipment Stock Will Deliver Better Returns? TP

Goodreturns, 16 Oct

Vikram Solar AGM notice published in newspapers

scanx.trade, 18 Oct

Vikram Solar Wins 187 MW Solar Module Order; Shares Fall 2.96%

HDFC Sky, 15 OctOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Vikram Solar shares crash 11% to fresh lifetime low. What's spooking investors?

The Economic Times, 07 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Vikram Solar vs Nifty 50: 1Y Return -56.00% vs -11.35%

Univest, 13 Oct

Vikram Solar shares gain nearly 2% on 400 MW module supply order

Moneycontrol.com, 29 SeptPrice 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.

Watch Items

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Valuation

MiddlingProfitability

WeakRisk

Points for each in the Score ↑

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑