Solarium Green Energy IPO Review

Solarium Green Energy provides Turnkey Solar Solutions which involves design, engineering, procurement & supply, construction & erection, testing, commissioning, associated transmission system and comprehensive Operation & Maintenance (“O&M”) of solar power plants. They serve a wide range of projects, including Residential rooftop projects, Commercial and Industrial (“C&I”) roof top and Ground Mounted projects, as well as Government Projects.

The company is benefited from the extensive experience of our Promoters Mr. Ankit Garg and Mr. Pankaj Vallabhbhai Gothi, who are associated with the company since its incorporation and having combined experience of more than 20 (Twenty) years in the various industries including renewable energy industry.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 8,234.45 Lakh, ₹ 17,780.83 Lakh, ₹ 9,892.50 Lakh and ₹ 16,788.87 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,216.44 Lakh, ₹ 2,454.06 Lakh, ₹ 610.60 Lakh, and ₹ 513.63 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 755.43 Lakh, ₹ 1,558.70 Lakh, ₹ 173.86 Lakh, and ₹ 205.04 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 10.39 and post-issue EPS of ₹ 7.48 for FY24. The pre-issue P/E ratio is 18.38x, while the post-issue P/E ratio is 25.55x against the Industry P/E ratio is 35x. The company's ROCE for FY24 is 54.18%, ROE for FY24 is 124.38% and RoNW 76.69%. The Annualised EPS based on the latest financial data is ₹ 9.92 and PE ratio is 19.25x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Solarium Green Energy showing listing gains of 7.85 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Solarium Green Energy Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.