Onix Renewables Limited

Platform	Last Traded Price	Min Quantity

Strengths & Weaknesses

Strengths

Consistent Revenue Growth and Profitability ORL’s revenue grew at a robust CAGR of ~50% from FY21 to FY23, reaching ₹146.46 crore, driven by timely order execution. Revenue for 11MFY24 stands at ₹180.93 crore, with an expected ₹250 crore by FY24, supported by pending bills of ₹40 crore and ongoing projects. EBITDA margins improved from 8.58% in FY23 to 10.21% in 11MFY24, with projections to sustain at 10%-11% due to steady order execution and operating leverage benefits.

Strong Order Book As of February 29, 2024, ORL has an unexecuted order book of ₹542.31 crore (3.7x FY23 revenue), ensuring healthy medium-term revenue visibility. The orders include solar installations, substation construction, underground cabling, solar panel O&M, and wind-solar hybrid projects, with execution expected within 12-18 months.

Stable Capital Structure ORL’s gearing improved to 0.40x in FY23 (FY22: 0.98x), supported by profit accretion and stable debt levels at ₹9.47 crore. However, TOL/TNW increased to 2.78x in FY23 (FY22: 2.61x) due to higher payables from raw material purchases.

Regular Equity Infusion by Promoters Promoters infused ₹40.44 crore in FY24 to support working capital needs for order execution, with commitments for additional equity as required.

Weaknesses

High Geographical and Client Concentration Risks ORL's revenue is heavily concentrated in Gujarat, contributing 90% of revenue over the past three years, with the entire order book focused on Gujarat and Maharashtra. This poses significant geographical concentration risk in the medium term. Additionally, over 65% of revenue is derived from the top two clients, indicating high client concentration. However, new orders from reputed entities are expected to mitigate these risks.

Competitive and Fragmented Industry Operating in a fragmented and competitive solar EPC industry limits pricing flexibility and bargaining power, affecting margin stability. The lack of a pass-through mechanism further contributes to volatile operating margins.

Balance Sheet	FY2023	FY2022
Share capital	1.55	1.55
Reserves	17.23	8.65
long term borrowings	10.51	5.89
other long term liabilities	6.56	8.16
shareholders fund	35.85	24.24
Borrowings	4.01	4.00
Other Current Liabilities	49.80	8.21
Total current Liabilities	53.81	12.21
Equity + Liabilities	89.66	36.45
Fixed Assets (incl. WIP)	11.29	7.56
Other Non Current Assets	13.09	3.17
Total Non current Assets	24.38	10.73
Trade Receivables	15.98	6.84
Cash & Cash Equivalents	0.98	1.46
Other Current Assets	48.32	17.41
Total current Assets	65.28	25.72
Total Assets	89.66	36.45

Profit & Loss	FY2023	FY2022
Revenue from Operations	146.46	99.86
Growth %	46.66%	0
Operating Expenses	133.73	96.48
Growth %	38.61%	0
Operating Profit	12.73	3.38
Op. Profit Margin %	8.69%	3.38%
Other Income	0.20	0.06
Finance Costs	1.15	0.91
Depreciation	0.32	0.20
Profit Before Tax	11.46	2.33
Tax	2.38	0.08
Tax %	1.62%	0.08%
Profit After Tax	9.08	2.25
Title 1Growth %	304.32%	0
PAT %	6.20%	2.25%
Diluted EPS	58.58	14.49

Shareholding Pattern

Color	Shareholder	Holding
	MANSUKH CHANABHAI SAVALIA	91.81%
	NIKHIL HARESHBHAI SAVALIYA	4.10%
	OTHERS	4.09%

Fundamentals

Quick Insights

Consistent Revenue Growth and Profitability ORL’s revenue grew at a robust CAGR of ~50% from FY21 to FY23, reaching ₹146.46 crore, driven by timely order execution. Revenue for 11MFY24 stands at ₹180.93 crore, with an expected ₹250 crore by FY24, supported by pending bills of ₹40 crore and ongoing projects. EBITDA margins improved from 8.58% in FY23 to 10.21% in 11MFY24, with projections to sustain at 10%-11% due to steady order execution and operating leverage benefits. Strong Order Book As of February 29, 2024, ORL has an unexecuted order book of ₹542.31 crore (3.7x FY23 revenue), ensuring healthy medium-term revenue visibility. The orders include solar installations, substation construction, underground cabling, solar panel O&M, and wind-solar hybrid projects, with execution expected within 12-18 months. Stable Capital Structure ORL’s gearing improved to 0.40x in FY23 (FY22: 0.98x), supported by profit accretion and stable debt levels at ₹9.47 crore. However, TOL/TNW increased to 2.78x in FY23 (FY22: 2.61x) due to higher payables from raw material purchases. Regular Equity Infusion by Promoters Promoters infused ₹40.44 crore in FY24 to support working capital needs for order execution, with commitments for additional equity as required.

Market Cap-

PE Ratio-

EPS₹58.58

Dividend Yield-

Book Value₹67.83 Cr

Debt/Equity3.791

Price/Book-

Price/Sales-

Industry PE-

Sales₹146.46 Cr

Profit After Tax₹9.08 Cr

Share Capital₹1.55 Cr

Shares Outstanding-

ISININE0TG701015

SectorRenewables

Symbol-

About Company

Onix Renewable Limited (ORL), formerly known as Onix Structure Private Limited, specializes in manufacturing electric filament lamps, including sealed beam lamp units, as per its annual filings.