Uncovering Hidden Gems in India's Solar Sector

India has emerged as a global leader in solar energy production, backed by government initiatives and innovation. Two lesser-known solar stocks, ACME Solar Holdings Ltd and Alpex Solar Ltd, have recorded impressive growth over the past five years. Our analysis reveals that these companies are leveraging government policies, robust module sales, and improved pricing to drive their financials and deliver strong returns to investors.

Key Takeaways:

• ACME Solar Holdings Ltd, a renewable energy company, has recorded a 26% compound growth in net profits over the last five years, with a current ROCE of 8%.
• The company's sales grew from Rs 1,777 cr in FY20 to Rs 1,405 cr in FY25, while its EBITDA increased from Rs 1,625 cr in FY20 to Rs 1,235 cr in FY25.
• Alpex Solar Ltd, a leading PV module manufacturer, boasts a strong ROCE of 52% and has achieved a compound growth of 51% in sales over the last five years.
• The company's net profits grew from Rs 3 cr in FY20 to Rs 83 cr in FY25, with a YoY profit growth of 93x due to a base effect.
• Alpex Solar's share price has surged by 237% in less than two years, with the company trading at a PE of 24x compared to the current industry median of 39x.

Statistics:

• ACME Solar Holdings Ltd's ROCE stands at 8%, matching the industry median.
• The company's sales growth was 65% YoY from June'24 to June'25, with EBITDA growth of 68% YoY during the same period.
• Alpex Solar Ltd's sales grew 51% YoY from FY20 to FY25, with compound growth in EBITDA of 78% during the same period.
• The company's net profits grew 94% compounded annually from FY20 to FY25, with a YoY profit growth of 93x due to a base effect.

Sources:

• Suhel Khan's article on Contify (2025)
• Data from www.Screener.in and www.trendlyne.com (2025)
• Disclaimer note in Suhel Khan's article on Contify (2025)
• IE Online Media Services Pvt. Ltd., distributed by Contify.com (2025)