Why is ACME Solar Holdings Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.00 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.00 times
- The company has been able to generate a Return on Capital Employed (avg) of 8.37% signifying low profitability per unit of total capital (equity and debt)
2
With ROCE of 8.4, it has a Very Expensive valuation with a 1.6 Enterprise value to Capital Employed
- Over the past year, while the stock has generated a return of -21.61%, its profits have risen by 328%
3
Below par performance in long term as well as near term
- Along with generating -21.61% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Quality key factors
Factor
Value
Sales Growth (5y)
21.20%
EBIT Growth (5y)
91.03%
EBIT to Interest (avg)
1.17
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
2.01
Sales to Capital Employed (avg)
0.16
Tax Ratio
26.25%
Dividend Payout Ratio
6.41%
Pledged Shares
0
Institutional Holding
10.90%
ROCE (avg)
2.73%
ROE (avg)
10.61%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
30
Price to Book Value
2.78
EV to EBIT
17.75
EV to EBITDA
13.19
EV to Capital Employed
1.59
EV to Sales
11.68
PEG Ratio
NA
Dividend Yield
0.09%
ROCE (Latest)
8.37%
ROE (Latest)
10.61%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
Bollinger Bands
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
18What is working for the Company
NET SALES(Latest six months)
At Rs 964.54 cr has Grown at 58.49%
PAT(Latest six months)
At Rs 225.65 cr has Grown at 68.07%
ROCE(HY)
Highest at 8.52%
DEBTORS TURNOVER RATIO(HY)
Highest at 6.16 times
-10What is not working for the Company
PBT LESS OI(Q)
At Rs 36.27 cr has Fallen at -54.9% (vs previous 4Q average
INTEREST(Latest six months)
At Rs 552.55 cr has Grown at 26.01%
PAT(Q)
At Rs 113.71 cr has Fallen at -10.4% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 76.79 % of Profit Before Tax (PBT
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Here's what is working for ACME Solar Hold.
Net Sales - Latest six months
At Rs 964.54 cr has Grown at 58.49%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 6.16 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for ACME Solar Hold.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 36.27 cr has Fallen at -54.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 80.51 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 113.71 cr has Fallen at -10.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 126.84 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 552.55 cr has Grown at 26.01%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 76.79 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT