Insolation Energy Limited IPO
i. Insolation Energy is engaged in the business of manufacturing solar panels and modules of high efficiency of various sizes as per the demand in the market from its fully automatic a state-of-the-art 200 MW (Rated Installed Capacity) SPV Module manufacturing unit located at Jaipur, spread in more than 60,000 Sq. ft area with latest machinery and stringent quality assurance process which delivers quality solar PV module.
ii. In addition to the manufacture of solar PV modules, the Company also trades in Solar Power Conditioning Unit (PCU) which uses solar energy and power from the grid to charge batteries and tall tabular Lead Acid Batteries which are used to store energy generated from the solar panels.
iii. The company has built a strong brand reputation for its solar PV modules manufactured on a fully automatic state-of-art manufacturing unit and sold under the brand name of “INA” along with a successful track record of developing, engineering and constructing.
iv. The solar PV modules are currently manufactured using both polycrystalline and Mono-PERC crystalline cell technology. Company’s portfolio of solar energy products consists of the following solar PV modules which includes bifacial (glass – to – Transparent back sheet modules) and are differentiated on the basis of solar PV module technology and type as well as cell size: (i) polycrystalline modules; and
(ii) monocrystalline passivated emitter and rear cell (Mono PERC) modules.
v. Insolation Energy is in the business of solar PV module technologies for more than last 5 years, during which time it has developed strong engineering capabilities in producing high efficiency PV modules.
vi. Insolation Energy has successfully established a geographically diversified presence in India through an extensive distributor network of 30+ distributors. The local presence and distributor network along with its brand recognition should ensure that the company is well-placed to serve this growing market. The key domestic customers include Livguard Energy Technologies Pvt. Ltd., Livfast Batteries Pvt. Ltd., Shakti Pumps India Ltd., Microtek international P. Ltd., Zunroof Tech Pvt. Ltd. etc.
vii. In 2020, the company diversified into the area of Solar Power Pack and successfully launched Solar Tubular / Li-ion Batteries and Solar PCU. These are designed after thorough market inputs and best available techniques. This Solar Combo offering with adequate storage is fast gaining popularity and helping the home office and home education community in cities, towns and villages.
viii. Competitive Strengths
(i) Experienced key management personnel
(ii) Strong relationships with customers, employees and other key stakeholders
(iii) Strong growth and financial performance backed by an asset light business model
Objects of the Insolation Energy Limited IPO:
Insolation Energy Limited IPO Details:
|Open Date:||Sep 26 2022|
|Close Date:||Sep 29 2022|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||fixed issue|
|Issue Size:||22.16 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 36-38 Per Equity Share|
|Listing At:||BSE SME|
|Listing Date:||Oct 10 2022|
Promoters And Management:
Financials of Insolation Energy Limited IPO:
|Particulars (in Cr)||March 22||March 21||March-20|
|Revenue from operations||215||162||88|
|Cost of Materials Consumed||178||121||67|
|Purchase of Stock in Trade||6.86||17||5.4|
|Change in inventory||-2.36||-2.26||-0.26|
|Employee Benefit Expense||5.77||4.56||3.20|
|No. of Shares||2.08||2.08||2.08|
|Profit (Loss) for the period||6.92||6.89||3.09|
Comparison With Peers:
|Name of the Company||Revenue||CMP||EPS||P/E|
|Insolation Energy Limited||215||38||3.33||12|
|Swelect Energy System Limited||158.95||347||22||15.8|
|Waa Solar Limited||45.72||42||5.47||7.5|
|Websol Energy System Limited||213||103||2.64||50|
Recommendation on Insolation Energy Limited IPO:
Review and Recommendation of Isolation Energy IPO by IZ Team is 5/10
1. The revenue has grown from 88 crores in Fy21 to 215 crores in Fy22. 2. EBITDA Margins are in the range of 6.46% to 7.73% in the last 3 years. 3. PAT has doubled in the last 3 years from 3 Crores in Fy19 to 7 Crores in Fy22. 4. Company in the last 3 years is generating positive cash flows from operations which is a good sign. 5. ~30 Crores of Borrowing is sitting on the books as on 31.03.2022. Equity as on 31.03.2022 is, 22 Crores. So, D/E is more than 1. 6. P/E of 12x looks decently priced.