Insolation Energy Ltd: Is It a Deep Value Opportunity?

Insolation Energy Ltd has a deep value score of 58/100 (rated Average). This score is calculated from three components

• Earnings Score: 30/40 — measures PAT growth momentum across quarters
• Underperformance Score: 26/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 25/25 — operational quality (margins, revenue growth, valuation)

Insolation Energy Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +38%
• Previous Quarter PAT Growth (QoQ): +37%
• 2 Quarters Ago PAT Growth (QoQ): -13%
• PAT Acceleration: +25.3pp (profits are accelerating)
• 2 consecutive quarters of positive PAT growth

Insolation Energy Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -49%
• 6-Month Return vs Nifty 500: -2%
• 3-Month Return vs Nifty 500: +1%
• Yet average quarterly PAT growth is +21% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Insolation Energy Ltd's earnings momentum is Accelerating — profit growth is speeding up.

• PAT QoQ progression: -13% → +37% → +38% (2Q ago → 1Q ago → latest)
• Acceleration: +25.3pp
• PAT YoY Growth: +67%

Insolation Energy Ltd's valuation metrics

• Price-to-Earnings (PE): 13.8x
• Price-to-Book (PB): 3.4x
• PEG Ratio: 0.1x
• Margin of Safety: +296% (appears undervalued)

Insolation Energy Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +38%
• Average Quarterly Revenue Growth: +27%
• Revenue Acceleration: +16.7pp
• Latest OPM Change: +0.9pp (margins expanding)
• Average OPM Change: -0.2pp
• Revenue YoY: +100%

Insolation Energy Ltd key facts

• Sector: Capital Goods - Electric General
• Market Cap: ₹2.8K Cr
• Rank in Capital Goods - Electric General: #1 by value score
• Overall rank among all deep value stocks: #5

Insolation Energy Ltd shows limited deep value signals currently — score is 58/100 (Average). Monitor for improvement.

• Value Score: 58/100 (Average)
• Earnings: Accelerating
• 1Y Underperformance: -49% vs Nifty 500

Other deep value stocks in Capital Goods - Electric General

• V-Guard Industries Ltd — Score 53/100, Average, earnings accelerating
• Focus Lighting & Fixtures Ltd — Score 49/100, Average, earnings accelerating
• Alpex Solar Ltd — Score 44/100, Average
• Servotech Renewable Power System Ltd — Score 31/100, Weak, earnings accelerating

Capital Goods - Electric General deep value sector overview

• 5 deep value stocks in this sector
• Average value score: 47/100
• Avg PAT acceleration: +49.8pp
• Top pick: Insolation Energy Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.