Vikram Solar Ltd IPO Analysis and Insights
Vikram Solar: A Comprehensive Analysis
Company Overview
Vikram Solar, established in 2005, has cemented its status as a leading manufacturer of solar modules in India, boasting a production capacity of 3.5 GW. Its manufacturing units are strategically located in Falta SEZ, Kolkata, West Bengal, and Oragadam, Chennai, Tamil Nadu. The company's remarkable projects include designing and installing a floating solar PV plant of 100 kW and contributing significantly to the solarization of Cochin International Airport. Vikram Solar specializes in delivering end-to-end solar energy solutions encompassing engineering, procurement, construction, operations, and maintenance, catering to both domestic and international markets.
Products & Services
- Solar PV Module Manufacturing
- Solar EPC and Rooftop Solutions
- Operations and Maintenance Services
Key Highlights
- Global Reach: Active in 32 countries.
- EPC Expertise: Successfully completed 1420 MegaWatt projects globally.
- Module Efficiency: Serviced over 900 MegaWatt+ projects.
- International Distribution: Exports to 16+ countries.
IPO Date and Price Band Details
- IPO Open Date: Vikram Solar initial public offering (IPO) is scheduled for February 2024. Source
- IPO Close Date: Not yet announced.
- Face Value: INR 10 per equity share
- IPO Price Band: Not yet announced.
Gray Market Data Overview
| Particulars | Amount |
|---|---|
| CMP (As of 16/02/2024) | INR 295 |
| P/E Ratio | 526.79 |
| Industry P/E | 25.78 |
| Market Capitalization | INR 7,635.49 Cr |
| Total Shares O/S | 258,830,000 |
| Face Value | INR 10 |
| Book Value per Share | INR 14.11 |
| Enterprise Value | INR 8,371.64 Cr |
Core Management Team
| Name | Designation |
|---|---|
| Shri H.K. Chaudhary | Chairman Emeritus |
| Mr. Gyanesh Chaudhary | Chairman And Managing Director |
| Mr. Vikram Swarup | Independent Director |
| Mr. Probir Roy | Independent Director |
| Mr. K. Subramanya | Independent Director |
| Ms. Ratnabali Kakkar | Independent Director |
| Mr. Ivan Saha | Whole-Time Director And CEO (Kmp) |
| Mr. K.K. Maskara | Whole-time Director, Senior VP, And CFO (KMP) |
| Ms. Neha Agrawal | Whole-time Director And VP-Corporate Strategy (Kmp) |
Financial Summary
Income Statement Highlights (Figures in INR, Cr)
| Particulars | 2021 | 2022 | 2023 | Variance (2022-23) |
|---|---|---|---|---|
| Revenue from Operations | 1610.14 | 1730.31 | 2073.23 | 19.82% |
| Total Income | 1627.60 | 1743.05 | 2091.91 | 20.01% |
| EBITDA | 194.50 | 71.41 | 204.86 | 186.86% |
| Profit After Tax (PAT) | 38.19 | -62.94 | 14.49 | 123.02% |
| Total comprehensive income for the year | 42.92 | -63.12 | 13.91 | 122.03% |
| EPS | 1.48 | -2.43 | 0.56 | 123.05% |
Balance Sheet Overview (Figures in INR, Cr)
| Particulars | 2021 | 2022 | 2023 | Variance (2022-23) |
|---|---|---|---|---|
| Non-Current Assets | 532.22 | 617.98 | 723.35 | 17.05% |
| Current Assets | 1,265.87 | 1,619.25 | 1,752.94 | 8.26% |
| Total Assets | 1,798.09 | 2,237.23 | 2,476.29 | 10.69% |
| Equity Share Capital | 23.53 | 258.83 | 258.83 | 0.00% |
| Other Equity | 390.88 | 92.46 | 106.37 | 15.04% |
| Total Equity | 414.41 | 351.29 | 365.20 | 3.96% |
| Non-Current Liabilities | 333.65 | 403.60 | 814.89 | 101.91% |
| Current Liabilities | 1,050.03 | 1,482.34 | 1,296.20 | -12.56% |
| Total liabilities & Equity | 1,798.09 | 2,237.23 | 2,476.29 | 10.69% |
Cash Flow Statement Recap (Figures in INR, Cr)
| Particulars | 2021 | 2022 | 2023 | Variance (2022-23) |
|---|---|---|---|---|
| Net cash from operating activities | 12.70 | 201.35 | 195.43 | -2.94% |
| Net cash used in investing activities | -39.51 | -154.89 | -110.51 | 28.66% |
| Net cash used in financing activities | 3.81 | -36.22 | -102.22 | -182.24% |
| Net increase in cash and cash equivalents | -23.00 | 10.24 | -17.30 | -268.89% |
Financial Ratios and SWOC Analysis
- Current Ratio: Enhanced to 1.35x from 1.09x.
- Debt-Equity Ratio: Slightly up at 2.02x, indicating a higher reliance on debt.
- Profitability: Net Profit Ratio improved significantly to 0.70%.
- Return on Equity (ROE): Increased to 4.05% from -16.44%.
SWOC Analysis
Strengths
- Exceptional quality of solar panels.
- Robust global presence and track record.
- Strong focus on research and development.
Weaknesses
- Higher costs associated with solar technology.
- Intense competition in the market.
Opportunities
- Increasing global shift towards renewable energy.
- Potential growth from unexplored markets and favorable policies.
Challenges
- Technological advancements render previous versions obsolete quickly.
- Integration challenges with existing grid frameworks.
- Environmental impacts of production and disposal.
Important Links
Conclusion
Vikram Solar, with its impressive global footprint and a solid reputation for innovation and quality, stands poised to capitalize on the growing demand for renewable energy. Financially robust, with a clear strategic vision, the company navigates the competitive landscape and technological intricacies, presenting a promising avenue for growth and sustainability in the renewable energy sector.
FAQs
Q: What is Vikram Solar Ltd?
A: Vikram Solar Ltd is a leading solar modules manufacturer in India established in 2005 with a production capacity of 3.5 GW. It offers end-to-end solar energy solutions, including engineering, procurement, construction, operations, and maintenance services both domestically and internationally.
Q: What are the key products and services offered by Vikram Solar?
A: Vikram Solar specializes in solar PV module manufacturing, solar EPC and rooftop solutions, along with operations and maintenance services.
Q: When is the Vikram Solar Ltd IPO scheduled to open?
A: The Vikram Solar Ltd IPO is scheduled to open in February 2024. However, the exact date has not been announced yet.
Q: What are the financial highlights of Vikram Solar Ltd?
A: The financial highlights for Vikram Solar Ltd show consistent revenue growth over the past three years, with significant improvements in EBITDA and Profit After Tax (PAT) from 2022 to 2023.
Q: Who are the core management team members of Vikram Solar Ltd?
A: Key members of the management team include Mr. Gyanesh Chaudhary as Chairman and Managing Director, Mr. Ivan Saha as Whole-Time Director and CEO, and several independent directors and other executive officers.
Q: What is the face value and book value per share of Vikram Solar Ltd?
A: As per grey market on 26 Feb 2024, the face value is mentioned as INR 10 per equity share, and the book value per share is INR 14.11.
Q: What is the status of Vikram Solar Ltd's IPO price band?
A: The IPO price band details have not yet been announced.
Q: How does Vikram Solar Ltd's P/E ratio compare to the industry?
A: As per Grey Market Trading Price P/E ratio is 526.79 as of 16/02/2024, which is significantly higher than the industry P/E ratio of 25.78.
Q: How can I invest in Vikram Solar Ltd IPO?
A: To invest in Vikram Solar Ltd's IPO, you should consult with a financial advisor or stockbroker once the company officially announces the opening date and price band details. It is also advisable to review the company's Draft Red Herring Prospectus (DRHP) for in-depth financial and business information.
Q: What are some risks and challenges for Vikram Solar Ltd according to the SWOC analysis?
A: The SWOC analysis points out challenges like rapid technological obsolescence, integration with existing grid frameworks, and environmental impacts from production and disposal.
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