Friday, December 9 2022 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Dec 05
Week of Nov 28
Week of Nov 21
Week of Nov 14
Week of Nov 07
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    Stock Analysis: Swelect Energy Systems Ltd.: Energised Profits!

    September 26, 2022 - Rahul Sharma


      (Code: 532051) (FV: Rs.10) (CMP: Rs.343.25)

      Incorporated in 1994, Swelect Energy Systems Ltd. manufactures and trades Solar power projects, off-grid solar photovoltaic modules based on crystalline silicon technology (c-Si), solar and wind power generation, contract manufacturing services, installation and maintenance services, sale of Solar Photovoltaic inverters and energy efficient lighting systems. The company along with its subsidiaries manufactures a wide range of Steel Castings covering WCB / Stainless Steel / Duplex and Special alloy steel; Iron Castings in Grey Iron and spheroidal Graphite Iron Metallurgy; solar photo voltaic models, solar pumps, solar inverters, hydro panels and servo stabilisers.

      Analysts are highly bullish on this counter due to the following reasons:

      Well-equipped manufacturing facilities and capacity

      The company is a mid-sized solar panel manufacturer with a current capacity of 140 MW per annum with plants in Tamil Nadu and Karnataka. The group has an installed capacity of ~89 MW of solar power assets that supply power to Solar Energy Corporation of India (SECI), TANGEDCO, Chamundeshwari Electricity Supply Corporation (CESC), Airports Authority of India (AAI), HatsunAgro among others. It has recently commissioned a 16-MW solar power plant under the IPP segment, taking the total portfolio of solar power assets to ~89 MW (excluding the capacity of 5.5 MW used for internal consumption).

      2nd trench of PLI Scheme for solar PV modules with allocation of Rs.19500 crore

      The Union Cabinet on September 21 approved the second tranche of the performance-linked incentive (PLI) scheme for the development of solar PV modules at an outlay of Rs.19,500 crore. The solar PV manufacturers, who will benefit from the PLI scheme, will be selected through a transparent selection process, the government said. The incentive will be disbursed for five years post commissioning of solar PV manufacturing plants "on sales of high-efficiency solar PV modules from the domestic market will be incentivised", it added.

      Manufacturing at Coimbatore plant

      The company's wholly-owned subsidiary namely SWELECT HHV Solar Photovoltaics Pvt Ltd. is constructing a 500 MW Solar PV Module Manufacturing plant at Coimbatore with the latest cell technology [M10 (182 mm) and M 12 (210 mm) cells] and is expected to start its commercial operations by the end of FY23. The company expects this plant to cater to major utility-scale developers, the Commercial & Industrial (C&I) segment as well as the export market.


      The company has a ROCE of 4.88% and an ROE of 3.85%. The company is highly undervalued and its stock is available below its book value. Also, the stock trades at a PE of just 15.7x against the industry average PE of 36.4x. Despite the increase in debt to fund its capex, Swelect Energy still has a decent debt: equity ratio of 0.59x. The company reported 78% CAGR growth in PAT over the last 3 years. Promoters are the majority stakeholders holding with 56.37% stake. Investor, PorinjuVeliyath, holds 1.12% stake in the company. Considering the above factors, we initiate a buy call on Swelect Energy Systems Ltd. with a target price of Rs.600.


    Other Articles - International


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.