– Multibagger Stock Analysis 2023
In this article, we can analyze Ahasolar Technologies Ltd as a Potential Multibagger Stock as on September 2023.
Ahasolar Technologies Ltd
Ahasolar Technologies Limited is engaged in the business of CleanTech enabling Energy Transition through Digital Transformation. Piyushkumar Bhatt is the current Chairman and managing director. Shatrughan Harinarayan Yadav is the current Executive Director.
The entity has been working with multiple national, international, government, and private companies to enable them to accelerate the adoption of solar through solutions offered by Ahasolar. Ahasolar Technologies Limited is also involved in the business of Advisory for sustainable development and energy transition to renewables.
Revenue Concentration
1. Market-Place to buy Solar Products = 75% 2. Advisory Services = 14% 3. SaaS and Onetime Software Services =11% So, the majority of the income is coming from the marketplace.
Financial Highlights
1. The revenue has increased from ~2 Cr in FY20 to ~17 Cr in Fy22. 2. PAT has increased from 2 lac in Fy20 to 68 lac in Fy22. 3. EBITDA margins in FY22 is 5.6%. Out of the total revenue of 17 Cr, a significant portion, specifically 14.68 Cr, is derived from the sales of solar products. However, it’s worth noting that the gross margin on these sales is quite minimal, only at 1%. The remaining revenue of 2.44 Cr is generated from advisory services and the selling of SaaS-based services. From this, it can be inferred that while the sale of solar products constitutes the majority of the company’s revenue, it contributes very little to the profit due to the extremely low margin. Hence, the profitability of the company largely relies on higher-margin services, such as advisory and SaaS offerings.
IPO Details
Co. intends to raise 12.85 Crs through its maiden IPO which will be utilized for:
A) Long Term Capital Requirement
B) General Corporate purpose
Collaborations
The company has tied up with Crownpeak DXP, Contentful DXP, and Optimizely DXP and is listed as solution partners on their
respective websites for providing DXP (Digital Experience Platforms) Consulting and Implementation Services. It is also a part of the MAGNET Global Network, USA.
Website
Location
Ahasolar Technologies is engaged in the business of CleanTech enabling Energy Transition through Digital Transformation and henceforth empowering stakeholders to adopt renewable energy. headquartered in Ahmedabad, Gujarat. Currently, the company has operations in Ladakh, Punjab, Uttar Pradesh, Madya Pradesh, Maharastra, Karnataka, Kerala, Tamil Nadu, Odisha, Chattisgarh, Manipur, Bihar, Arunachal Pradesh.
Leaders
Piyushkumar Bhatt is the current Chairman and managing director. He worked with the $125 billion Company Reliance Industries Limited and handled electrical works of $600 million projects over the last 15 years. He worked with a $125 billion Company Reliance Industries Limited and handled electrical works of $600 million projects over the last 15 years. He Handled more than 5 mega projects electrical works and 25 no substations in his entire career. Deep expertise in high voltage cables, distribution systems, and substations management.
Shatrughan Harinarayan Yadav is the current Executive Director. He is having experience of more than 12 years in the Renewable Energy sector. He has been playing a vital role in technological matters of the Company.
Pulkit Dhingra is the current Promoter and Whole Time Director of the Company. He is having experience of more than 8 years in the Renewable Energy sector. He has been instrumental in making major decisions in the policy-making of the Company and in leading the Company. He has been playing a vital role in formulating business strategies and effective implementation of the same.
Garima Heerani is the current Executive Director of the Company. She is having experience of more than 5 years in Sales and marketing. She has been playing a vital role in marketing-related matters of the Company.
Highlights
Software for Solar PV Installer and Government Agencies.Advisory and Technical Consultancy Services for the development of Solar Power Plants. Marketplace for Solar PV Installers and Manufacturers has a pan-India presence making an Impact in the Solar Ecosystem. The company delivers these services with the objective of bringing two destructive technologies of this decade i.e., solar PV and digital on a single platform.
Software for Solar PV Installers and Government Agencies. Advisory and Technical Consultancy Services for the development of Solar Power Plants. Marketplace for Solar PV Installers and Manufacturers has a pan-India presence making an Impact in the Solar Ecosystem.
Awards
- Received Award for Renewable Digital Award & Emerging Company of the Year 2021
- ISO CERTIFICATE Receipt of ISO 9001:2015, ISO 27001:2013
- ISO 45001:2018for development of Software and Process Automation Solar
- Designing of PV Received Gujarat State Award for contribution in Technical Excellence in developing Solar App to Help Solar PV Installer.
Products & Services
- Aha Solar Helper
- Aha Marketplace
- Aha Advisory
- Aha Energy
Profit & Loss
Expansions
- The Company also continues to converge on improving business capabilities and enhancing growth levers. Improved R&D capabilities, enhanced retail format expansion, design abilities, and better operational management amongst others will help reinforce our competitive advantages.
- Growing Solar Industry: The increasing global focus on renewable energy creates opportunities for AHAsolar to capitalize on the growing demand for solar solutions.
- Evolving Policies: Favorable solar energy policies and incentives can drive increased adoption of solar solutions, benefiting AHAsolar’s services.
- Expansion into New Markets: The company’s successful operations in India, UAE, and Germany could pave the way for expansion into additional international markets.
Positives
- The company has reduced debt.
- The company is almost debt-free.
- The company has a good return on equity (ROE) track record: 3 Years ROE 82.6%
- The Company is Virtually Debt Free.
- The Company has a good ROE track record of 118.92%.
- The company has delivered good Income growth over the past 3 years of 153.83%.
- Company has sound operating leverage of 4.21 times.
Negatives
- Promoter holding is low: 37.0%
- Debtor days have increased from 41.1 to 49.3 days.
- The company has been maintaining poor Dividend Payout ratio of 0% since last 3 years.
Warren Buffett Checklist
| Factor | Value |
| Economic Moat | Moderate |
| Growth | Good |
| Valuation | High |
| Debt | Good |
| Integrity | Good |
Summary
Based on above evaluation the company have multibagger properties.
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