Solex Energy Ltd
In December 2021 I publicly flagged Solex Energy at ₹63 as one of six free ‘multibagger potential’ ideas (see the dated post above). Today it trades near ₹938 and has since paid a 1:4 bonus — a wealth gain of roughly 15 times. Here is why I backed a small Gujarat solar manufacturer before the crowd arrived.
An early seat on India’s solar boom
Solex Energy is a Surat-based solar PV cell and module manufacturer that also builds solar projects — rooftop, commercial and utility. When I flagged it, it was a small company most investors had never heard of. But India’s entire energy strategy was pivoting toward domestic solar manufacturing, and Solex was a genuine, scaling maker of exactly the product that policy was about to favour. That is the definition of being early on a structural theme.
The fundamental strengths that made me buy
- Explosive, real growth. It scaled to ~₹1,555 crore of revenue and ~₹89 crore of net profit — a genuine manufacturer, not a promise.
- Exceptional return ratios. Return on equity near 44% and return on capital near 34% — the company earns superbly on the capital it deploys.
- A powerful policy tailwind. India’s ALMM and PLI push to build a domestic solar-manufacturing base directly favours makers like Solex.
- Capacity expansion into advanced cells. Investment in higher-efficiency TOPCon module capacity keeps it on the right side of the technology curve.
- Aligned ownership and re-rating. Promoters hold ~66%, and its migration from the SME platform to the main board improved liquidity and visibility.
Why being early mattered most
Solex is a lesson in timing the theme, not the trade. I did not need to predict quarterly numbers; I needed to recognise that India was about to spend a decade building domestic solar capacity, and to own a real manufacturer before that was obvious. As policy, demand and capacity all lined up, a ₹63 small-cap re-rated into a multi-hundred-crore-profit business. Being early on the right structural wave is worth more than being clever on the wrong one.
Don’t take my word for it — it’s on the public record
The proof is above: my public Facebook post of 22 December 2021, naming Solex Energy at ₹63, shared free with my investor community long before the solar rally became a headline.
“You don’t have to be the smartest investor in the room — you just have to be early on a wave that the whole country is about to ride.”
The lesson for you
Solex is why I try to spot the structural theme years before it is a crowd. India’s solar-manufacturing push was visible to anyone paying attention; the edge was simply owning a real maker of the product, at a small-cap price, before the money noticed.
Want to catch stocks like these before they move?
Explore how you can work with me — the same value-investing framework that found these winners, now applied for you.
Disclaimer: This article is a personal account of my own past investment decision, shared for educational purposes only. It is not a recommendation to buy or sell this or any stock at current prices. All return figures are calculated to recent market prices and adjusted for stock splits and bonuses; past performance is not a guarantee of future returns. Equity investments are subject to market risks. Please do your own research or consult your financial adviser before investing.
