Interesting Stock of green energy sector: Given stock price of ₹565, let’s calculate the forward Price-to-Earnings (P/E) ratio for Sahaj Solar based on an assumed annualized EPS of ₹16, and then compare it to the average P/E ratio in the green energy sector.
Forward P/E Ratio Calculation:
Current Stock Price: ₹565
Assumed Annualized EPS: ₹16
Forward P/E Ratio
=
Current Stock Price
Projected EPS
=
565
16
=
35.31
Forward P/E Ratio=
Projected EPS
Current Stock Price
=
16
565
=35.31
Comparison with Sector P/E Ratio:
The green energy sector typically has higher P/E ratios, often between 40 and 50 due to the growth potential in renewable energy. This places Sahaj Solar’s forward P/E ratio slightly below the sector average, which could suggest it is reasonably valued or slightly undervalued relative to its peers
Citation: CHITTORGARH.COM
INVESTORGAIN
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Expansion Plans:
Sahaj Solar aims to use proceeds from its recent IPO primarily for working capital requirements and general corporate purposes. The company focuses on expanding its manufacturing of high-efficiency solar modules (including monocrystalline PERC modules with >21% efficiency) and providing integrated EPC services across India. This expansion aligns with India’s increasing demand for renewable energy solutions, providing Sahaj Solar with potential growth opportunities in the sector.
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