Alpex Solar IPO Financial Analysis

Alpex Solar Ltd established in 1993, is a leading manufacturer of solar panels, is set to launch its IPO on 8 February 2024. Here's a summary of the company's business model, strengths, risks and financials, to assist investors in making informed decisions.

Alpex Solar IPO Overview

Alpex Solar, established in 1993, is a leading manufacturer of solar panels specializing in monocrystalline and polycrystalline cell technologies. Their product range includes bifacial, mono PERC and Half-Cut modules. Additionally they offer solar energy solutions like AC/DC solar pumps and EPC services. Key clients include Powergrid, Shakti Power, BVG, Luminous, Godrej Group, Solar World, Hindustan Aeronautics Ltd, NTPC, Indian Oil Corporation, Oswal Group, RRECL etc.

The company operates in Delhi, Mumbai and other locations with a manufacturing facility in Greater Noida. Their IPO aims to support India's renewable energy goals, aligning with national objectives set by the Modi government. They're committed to becoming a major player in high-power photovoltaic modules globally. Alpex Exim Private Ltd, a subsidiary deals in specialized yarn and knitting machine components for the textile industry. Established for over 20 years it adds diversification to Alpex's portfolio.

Alpex Solar IPO Strengths

Diverse Quality Products: Offer a diverse range of high-quality products to meet varied market needs.

Technology Leadership: Equipped with advanced technology to stay ahead in innovation and deliver cutting edge solutions.

Integrated EPC Services: Its integrated Engineering, Procurement and Construction (EPC) services enhance business value and competitiveness.

Reliable Supply Chain: With a strong supplier base they ensure consistent quality and timely delivery gaining customer trust.

Alpex Solar IPO Risk

1 Company’s growth depends on winning solar water pump contracts from the government. Alpex needs to bid smart and stay flexible in a competitive and uncertain market.

2. A drop in quality or a change in demand especially from key client "Luminus," could affect the business and revenue. Losing important clients may impact income and profitability.

3. Relies on its top five customers for revenue with "Luminous Power Technologies Private Limited" being a key contributor. Dependence on these clients poses a risk as a decrease in business from them could negatively impact revenue and profitability.

4. Most of our revenue in the past three years comes from Uttar Pradesh. If anything goes wrong there, it could impact overall revenue and results.

Alpex Solar IPO Details

Alpex Solar IPO is scheduled from 8 to 12 February 2024. It has a face value of ₹10 per share, and the IPO's price range is ₹109-115 per share.

Financial Performance of Alpex Solar IPO

Alpex Solar's Profit After Tax (PAT) was ₹315.23 Lakhs in 2021 dropped to ₹19.42 Lakhs in 2022 and then increased to ₹378.58 Lakhs in 2023. This indicates fluctuation in financial performance over the past three years.

Key Ratios

Alpex Solar's return on equity (ROE) fluctuated over the past three years. In FY21 it stood at 8.40% declined sharply to 0.50% in FY22 and then rebounded to 9.14% in FY23. ROE reflects the company's profitability relative to shareholder equity.

Alpex Solar Vs Peer

Alpex Solar Limited's shares have a face value of ₹10 per share with a price-to-earnings (P/E) ratio of 54.76 and earnings per share (EPS) of ₹2.10. In comparison, Insolation Energy Ltd's shares also have a face value of ₹10 per share but with a lower P/E ratio of 20.95 and a higher EPS of ₹6.01. These metrics provide insights into the valuation and profitability of each company's shares in the market.

Promoters of Alpex Solar

1. Mr. Ashwani Sehgal.

2. Mrs. Monica Sehgal.

3. Mr. Vipin Sehgal.

Alpex Solar was promoted by Ashwani Sehgal, Monica Sehgal and Vipin Sehgal. Currently, they collectively hold 93.53% of the company's shares. However after the IPO's fresh issue of shares their ownership will decrease to 68.76%.

Final Words

This article takes a closer look into Alpex Solar IPO, scheduled for subscription from 8 February 2024. It suggests that potential investors thoroughly review the company's details, financials, subscription status and GMP. Grey Market Premium indicates the anticipated listing performance, providing valuable insights for investors to make well informed decisions. On 7th February 2024, Alpex Solar IPO GMP is ₹195 up from the issue price reflecting a 169.57% increase, this could be change so investor must track GMP.