Websol Energy System Ltd.
ISIN: INE855C01023 • Market Cap: ₹3,594 Cr
The 5-Pillar Quality Audit for Websol Energy System Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (37.5%), Return on Capital Employed (50.0%), and equity compounding (55.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.58 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (311.9%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 11.46 vs PEG of — and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 29.7%, backed by 4.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 50.0%)
Websol Energy System Ltd. generates exceptional return on capital employed of 50.0%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 55.6%)
Shareholder equity compounds at a healthy 55.6%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 311.9%)
Revenue has expanded at 311.9% CAGR over 3 years, signaling industry market-share gains.
Attractive Valuation Margin (P/E: 11.46)
Trading at a P/E multiple of 11.46, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking WEBELSOLAR against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 82/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Capital Goods Sector Peer Comparison
Compare WEBELSOLAR directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Websol Energy System Ltd. (WEBELSOLAR)Current | 82/100 | ₹3,594 Cr | 11.46 | 50.0% | 0.58 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Websol Energy System Ltd.
Q:What is the 5-Pillar Fundamental Score for Websol Energy System Ltd. (WEBELSOLAR)?
Websol Energy System Ltd. has a RupeeTools Fundamental Score of 82/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (69/100), Growth (99/100), Valuation (90/100), and Ownership Quality (42/100).
Q:Is WEBELSOLAR fundamentally strong for long-term investment?
Yes, WEBELSOLAR exhibits solid fundamental strength with a 82/100 score, driven by a return on equity of 55.6% and a debt-to-equity ratio of 0.58.
Q:Does WEBELSOLAR pass the Coffee Can Investing filter?
Yes! WEBELSOLAR satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does WEBELSOLAR compare against other Capital Goods peers?
Within India's Capital Goods sector, WEBELSOLAR trades at a P/E of 11.46 and generates an ROCE of 50.0%. Compare its 5-Pillar score of 82/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.