About the Company:
Expertise:
- 20+ years of solar know-how: It design, build, and maintain high-quality solar power systems for homes, businesses, and everything in between.
- Distributed Energy Solutions: It is powering industries, rural communities, and small businesses with smart, adaptable energy systems.
- Harnessing the Sun’s Potential: From innovative microgrids to solar water pumps and street lighting, we’re unlocking the full potential of renewable energy.
- Waste Heat to Power: Embracing cutting-edge technologies, we’re turning wasted heat into valuable energy.
Reach:
- 8,000+ Projects Across 15+ States
- 25,000+ Installations
- 50+ Microgrids
Why I liked the company:
1. Explosive Growth: Refex is aiming for a 200+ MW capacity this year , showcasing their aggressive expansion plans.
2. Proven Track Record: Backed by the wealth-generating Refex Group , including the listed Refex Industries, Refex inherits a strong legacy of success.
3. Secure Revenue Stream: Their focus on the Indian Railways and the RESCO model guarantees a continuous revenue stream for 25 years.
4. Strategic Investments: Refex’s recent capex expansion (CWIP on screener) demonstrates their commitment to building infrastructure for future growth.
5. Gearing Up for the Next Level: The planned ₹500 crore capital raise positions Refex to fuel their ambitious expansion plans, further solidifying their future prospects.
6. Embracing Innovation: Their pilot projects in green hydrogen and other emerging technologies showcase their forward-thinking approach and readiness to adapt to the evolving energy landscape.
Valuation
While the company is valued at 600 Crore, implementing a 200 MW project using industry estimates (4.5 crores/MW) would cost nearly 900 Crore. This implies the market is valuing the company’s existing operations and future potential significantly lower than the cost of expansion.
The current valuation seems to offer an entry point lower than the cost of replicating the company’s 200 MW capacity through greenfield projects.
Risk
The company’s existing debt of 400 crore raises potential financial risk, and additional debt may be needed for working capital as they execute projects.
Disc: Invested