3,916% Profit Growth: Solar Stock Hits Upper Circuit After Announcing Its Q4 Results

Synopsis: Onix Solar hit an upper circuit after posting explosive Q4 results, with 202% revenue growth and 3,916% profit surge YoY, supported by strong momentum and multibagger returns across short- and long-term periods.   

The shares of this India-based company focused on solar power solutions and renewable energy development are in the spotlight after it hit 2% upper circuit in today’s session following its Q4 results with 3916% profit growth. 

With a market capitalisation of Rs. 2,561 cr, the shares of Onix Solar Energy Ltd were trading at Rs. 1021.75 per share, locked at 2% upper circuit in today’s market session, up from its previous close of Rs. 1001.75 per share. The stock has shown exceptional momentum, delivering 108% over the past year, 103% in the last six months, and 37% in just the past month. 

Q4 Results 

Sales surged by 202% from Rs. 23.3 cr to Rs. 70.3 cr. EBITDA jumped sharply by 4,133% from Rs. 0.60 cr to Rs. 25.4 cr. Net profit skyrocketed by 3,916% from Rs. 0.64 cr to Rs. 25.7 cr, while EPS increased by 283.5% from Rs. 2.67 to Rs. 10.24, reflecting explosive year-on-year growth.

Sales rose by 337% from Rs. 16.1 cr to Rs. 70.3 cr. EBITDA increased by 78% from Rs. 14.3 cr to Rs. 25.4 cr. Net profit grew by 78.5% from Rs. 14.4 cr to Rs. 25.7 cr, while EPS climbed by 79% from Rs. 5.73 to Rs. 10.24, indicating strong sequential momentum. 

About the company 

Onix Solar Energy Limited is an India-based company focused on solar power solutions and renewable energy development. It is involved in activities such as solar project installation, power generation, and providing clean energy systems for commercial and industrial clients. 

The company has demonstrated strong growth momentum, with compounded profit growth of 67% over 10 years, 152% over 5 years, and an impressive 639% over the last 3 years. 

Similarly, compounded sales growth stands at 52% over 10 years, 227% over 5 years, and a remarkable 1888% over 3 years. Despite this rapid expansion, its profitability metrics remain moderate, with both ROCE and ROE at 10.2%. 

In terms of valuation, the stock trades at a P/E of 63.7, slightly below the industry average P/E of 71.1, while maintaining a low PEG ratio of 0.10, suggesting potential growth at a relatively reasonable price. 

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