WEBSITE BSE:533451 NSE: KARMA ENERG Inc. Year: 2007 Industry: Power Generation/Distribution My Bucket: Add Stock
Last updated: 15:40
No Notes Added Yet
1. Business Overview
Karma Energy Ltd. is an India-based company primarily engaged in the generation and distribution of power. Its core business model involves setting up and operating power projects, predominantly in the renewable energy sector, specifically wind power and small hydro power. The company develops, owns, and operates these power generation facilities. It generates revenue by selling the electricity produced from its plants to state electricity utilities or other distribution companies under Power Purchase Agreements (PPAs).
2. Key Segments / Revenue Mix
Karma Energy's operations are primarily concentrated in two main segments within renewable energy:
Wind Power: Development and operation of wind farms. This constitutes a significant portion of its operational capacity.
Small Hydro Power: Development and operation of run-of-the-river hydro power projects.
While specific revenue contribution percentages for each segment are not publicly detailed, the company's focus and operational projects suggest a strong emphasis on these two forms of clean energy generation.
3. Industry & Positioning
The Indian power generation industry is vast, undergoing a significant transition towards renewable energy, driven by government policies and increasing demand. It is characterized by the presence of large state-owned entities, private conglomerates, and numerous independent power producers (IPPs). Karma Energy operates as an IPP within this landscape, competing with both larger, well-established players and other mid-sized renewable energy developers. Its positioning is as a smaller-to-mid-sized player in the competitive Indian renewable energy sector, focusing on specific niches like wind and small hydro.
4. Competitive Advantage (Moat)
Karma Energy likely possesses limited durable competitive advantages given its scale within the highly capital-intensive and regulated power sector. Potential aspects that could act as minor advantages include:
Operational Experience: Accumulated expertise in developing and managing renewable energy projects, particularly wind and small hydro.
Long-term PPAs: Stable revenue streams from existing Power Purchase Agreements can offer predictability, though terms are subject to regulatory and market dynamics.
Local Project Development Knowledge: Understanding of land acquisition, regulatory approvals, and local challenges specific to its operational regions in India.
However, these are generally not considered strong, enduring moats against larger, more diversified competitors with greater access to capital and scale economies.
5. Growth Drivers
National Renewable Energy Targets: India's ambitious targets for increasing renewable energy capacity create a favorable policy environment and market demand.
Increasing Power Demand: Consistent growth in India's industrial, commercial, and residential power consumption.
Declining Costs of Renewables: Continued advancements in technology and economies of scale are making wind and hydro power more cost-competitive.
Expansion of Existing Capacity: The company's ability to develop new projects or expand current operational capacity.
Government Incentives: Various state and central government incentives, subsidies, and preferential tariffs for renewable energy projects.
6. Risks
Regulatory & Policy Risk: Changes in government policies, renewable energy tariffs, or PPA terms can significantly impact profitability.
Payment Delays: Delays or defaults in payments from state electricity distribution companies (discoms) can strain liquidity and working capital.
Resource Variability: Dependence on natural resources (wind speed, water flow) means power generation can fluctuate, affecting revenue.
High Capital Expenditure & Debt: Power projects are capital-intensive, requiring significant debt financing, which exposes the company to interest rate risks and refinancing challenges.
Competition: Intense competition from larger players with deeper pockets and better access to financing.
Land Acquisition & Environmental Clearances: Challenges in acquiring suitable land and obtaining timely environmental and regulatory approvals for new projects.
7. Management & Ownership
Karma Energy Ltd. is a promoter-led company, which is common in India. The promoter group typically holds a significant ownership stake, indicating a long-term commitment to the business. Management quality would depend on their strategic vision, execution capabilities, and financial discipline in a capital-intensive sector. Continuity in leadership is often a characteristic of promoter-driven enterprises.
8. Outlook
Karma Energy operates in a sector with secular tailwinds due to India's energy demand growth and commitment to renewable energy. The bull case hinges on the company's ability to successfully develop and commission new projects, secure favorable long-term Power Purchase Agreements, and maintain operational efficiency, thereby capitalizing on the national push for green energy. A stable regulatory environment and improved payment discipline from discoms would further support its growth trajectory.
Conversely, the bear case involves risks such as intense competition from larger players, potential renegotiation or non-compliance with existing PPAs, significant payment delays from state utilities, and challenges in securing adequate and cost-effective financing for future projects. Variability in wind and hydro resources, coupled with the inherent capital intensity and regulatory complexities of the sector, could also pose considerable headwinds to profitability and expansion. The company's smaller scale might limit its ability to absorb shocks compared to larger industry players.
Our experts help you choose the right stocks based on performance, risk, and growth potential.
Market Cap ₹58 Cr.
Stock P/E 37.3
P/B 1.4
Current Price ₹50.3
Book Value ₹ 36.2
Face Value 10
52W High ₹88
Dividend Yield 0%
52W Low ₹ 35.3
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 6 | 2 | 1 | 2 | 4 | 1 | 1 | 3 | 5 | 1 |
| Other Income | 0 | 0 | 1 | 1 | 0 | 0 | 1 | 1 | 0 | 0 |
| Total Income | 6 | 2 | 2 | 3 | 5 | 1 | 2 | 4 | 5 | 2 |
| Total Expenditure | 2 | 2 | 3 | 2 | 2 | 2 | 1 | 3 | 3 | 3 |
| Operating Profit | 4 | -1 | -2 | 1 | 3 | -1 | 1 | 1 | 2 | -2 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 |
| Profit Before Tax | 3 | -1 | -3 | 1 | 2 | -2 | 0 | 1 | 1 | -2 |
| Provision for Tax | 1 | -0 | -1 | 0 | 0 | -0 | -0 | 0 | 0 | -2 |
| Profit After Tax | 3 | -1 | -2 | 1 | 2 | -1 | 0 | 1 | 1 | 0 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | -0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | 3 | -1 | -2 | 1 | 2 | -1 | 0 | 1 | 1 | 0 |
| Adjusted Earnings Per Share | 2.2 | -0.9 | -1.5 | 0.8 | 1.5 | -1.2 | 0.3 | 0.5 | 0.9 | 0.2 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 15 | 14 | 27 | 33 | 29 | 36 | 23 | 28 | 13 | 12 | 9 | 10 |
| Other Income | 1 | 0 | 1 | 0 | 2 | 1 | 0 | 1 | 5 | 1 | 3 | 2 |
| Total Income | 17 | 14 | 29 | 34 | 31 | 37 | 24 | 28 | 18 | 13 | 11 | 13 |
| Total Expenditure | 10 | 9 | 17 | 26 | 25 | 26 | 25 | 22 | 10 | 10 | 8 | 10 |
| Operating Profit | 6 | 5 | 12 | 8 | 6 | 11 | -1 | 6 | 8 | 3 | 3 | 2 |
| Interest | 7 | 7 | 8 | 5 | 4 | 5 | 5 | 3 | 1 | 0 | 0 | 0 |
| Depreciation | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 3 | 2 | 2 |
| Exceptional Income / Expenses | 1 | 5 | 0 | 0 | -2 | 0 | 0 | 0 | 5 | 0 | 0 | 1 |
| Profit Before Tax | -4 | -1 | -1 | -1 | -6 | 0 | -12 | -2 | 7 | -0 | 2 | 0 |
| Provision for Tax | -1 | 0 | -3 | -0 | -2 | 0 | -1 | -0 | 1 | -0 | 0 | -2 |
| Profit After Tax | -3 | -2 | 2 | -1 | -4 | 0 | -11 | -2 | 6 | 0 | 2 | 2 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -3 | -2 | 2 | -1 | -4 | 0 | -11 | -2 | 6 | 0 | 2 | 2 |
| Adjusted Earnings Per Share | -2.7 | -1.3 | 1.6 | -1 | -3.7 | 0.1 | -9.2 | -1.8 | 5.1 | 0.1 | 1.3 | 1.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -25% | -31% | -24% | -5% |
| Operating Profit CAGR | 0% | -21% | -23% | -7% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -12% | 15% | 28% | 11% |
| ROE Average | 4% | 7% | -3% | -3% |
| ROCE Average | 4% | 8% | 4% | 4% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 43 | 42 | 55 | 74 | 48 | 46 | 33 | 30 | 38 | 38 | 40 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 33 | 20 | 6 | 36 | 32 | 24 | 17 | 12 | 0 | 0 | 1 |
| Other Non-Current Liabilities | 18 | 17 | 16 | 21 | 14 | 13 | 12 | 11 | 7 | 6 | 5 |
| Total Current Liabilities | 22 | 58 | 56 | 12 | 26 | 48 | 51 | 11 | 10 | 6 | 6 |
| Total Liabilities | 117 | 137 | 134 | 142 | 120 | 131 | 113 | 63 | 55 | 50 | 52 |
| Fixed Assets | 58 | 53 | 48 | 43 | 45 | 42 | 37 | 32 | 27 | 23 | 22 |
| Other Non-Current Assets | 38 | 47 | 55 | 79 | 52 | 60 | 53 | 2 | 14 | 14 | 8 |
| Total Current Assets | 21 | 36 | 31 | 20 | 23 | 29 | 22 | 29 | 14 | 13 | 22 |
| Total Assets | 117 | 137 | 134 | 142 | 120 | 131 | 113 | 63 | 55 | 50 | 52 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 0 | 0 | 0 | 4 | 7 | 0 | 1 | 0 | 0 | 0 |
| Cash Flow from Operating Activities | 11 | -12 | 19 | 14 | 6 | 5 | 11 | -2 | 5 | 4 | 2 |
| Cash Flow from Investing Activities | -3 | -10 | -4 | 4 | -11 | -19 | 0 | 51 | 9 | 1 | -2 |
| Cash Flow from Financing Activities | -8 | 22 | -15 | -14 | 8 | 8 | -11 | -49 | -13 | -5 | 1 |
| Net Cash Inflow / Outflow | -0 | -0 | -0 | 4 | 3 | -7 | 0 | -0 | 0 | -0 | 0 |
| Closing Cash & Cash Equivalent | 0 | 0 | 0 | 4 | 7 | 0 | 1 | 0 | 0 | 0 | 1 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -2.71 | -1.33 | 1.6 | -0.97 | -3.68 | 0.15 | -9.24 | -1.84 | 5.09 | 0.11 | 1.35 |
| CEPS(Rs) | 1.53 | 2.99 | 5.91 | 3.33 | 0.62 | 4.84 | -4.82 | 2.56 | 9.27 | 2.65 | 2.98 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 37.25 | 35.92 | 47.58 | 63.69 | 41.26 | 39.6 | 28.14 | 26.11 | 33.25 | 33.23 | 34.55 |
| Core EBITDA Margin(%) | 33.19 | 35.61 | 38.84 | 23.56 | 13.32 | 27.83 | -7.87 | 19.2 | 24.99 | 16.8 | 7.04 |
| EBIT Margin(%) | 18.97 | 39.73 | 24.88 | 9.62 | -5.55 | 15.47 | -27.9 | 4.16 | 65.13 | 0.71 | 19.69 |
| Pre Tax Margin(%) | -27.58 | -10.32 | -3.4 | -3.83 | -20.06 | 0.55 | -50.68 | -8.21 | 56.19 | -0.24 | 17.97 |
| PAT Margin (%) | -20.43 | -11.04 | 6.75 | -3.35 | -14.61 | 0.48 | -46.35 | -7.72 | 45.99 | 1 | 17.92 |
| Cash Profit Margin (%) | 11.55 | 24.76 | 24.88 | 11.52 | 2.45 | 15.6 | -24.2 | 10.77 | 83.74 | 24.84 | 39.68 |
| ROA(%) | -2.57 | -1.22 | 1.37 | -0.81 | -3.25 | 0.14 | -8.77 | -2.42 | 9.91 | 0.24 | 3.06 |
| ROE(%) | -7.01 | -3.64 | 3.84 | -1.74 | -7 | 0.37 | -27.28 | -6.77 | 17.15 | 0.32 | 3.98 |
| ROCE(%) | 2.99 | 5.33 | 5.96 | 2.77 | -1.45 | 5.05 | -6.09 | 1.6 | 18.29 | 0.21 | 4.31 |
| Receivable days | 225.62 | 602.51 | 369.45 | 177.98 | 109.9 | 131.11 | 179.27 | 110.73 | 291.77 | 291.65 | 338.28 |
| Inventory Days | 15.77 | 15.79 | 7.42 | 5.6 | 6.06 | 4.62 | 23.32 | 32.59 | 63.05 | 60.09 | 83.86 |
| Payable days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PER(x) | 0 | 0 | 27.01 | 0 | 0 | 74.84 | 0 | 0 | 6.71 | 615.1 | 38.76 |
| Price/Book(x) | 0.61 | 0.51 | 0.91 | 0.51 | 0.41 | 0.28 | 0.49 | 1.23 | 1.03 | 1.99 | 1.51 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 4.76 | 6.48 | 3.83 | 2.31 | 2.26 | 2.01 | 2.97 | 1.59 | 3.46 | 6.18 | 7 |
| EV/Core EBITDA(x) | 11.39 | 16.9 | 8.91 | 9.43 | 11.27 | 6.56 | -51.6 | 7.02 | 5.24 | 25.16 | 18.18 |
| Net Sales Growth(%) | -46.34 | -8.81 | 96.57 | 21.95 | -13.09 | 23.23 | -35.71 | 19.38 | -53.48 | -3.56 | -29.54 |
| EBIT Growth(%) | -72.58 | 91 | 23.1 | -52.87 | -150.14 | 443.55 | -215.99 | 117.81 | 627.65 | -98.95 | 1856.28 |
| PAT Growth(%) | -304.9 | 50.73 | 220.27 | -160.51 | -278.83 | 104.04 | -6330.24 | 80.11 | 377.02 | -97.89 | 1156.73 |
| EPS Growth(%) | -304.91 | 50.74 | 220.27 | -160.51 | -278.84 | 104.04 | -6330.22 | 80.11 | 377.02 | -97.89 | 1156.29 |
| Debt/Equity(x) | 1.17 | 1.77 | 1.08 | 0.6 | 1.19 | 1.52 | 1.95 | 0.58 | 0.13 | 0 | 0.03 |
| Current Ratio(x) | 0.95 | 0.63 | 0.55 | 1.74 | 0.89 | 0.6 | 0.44 | 2.65 | 1.39 | 2.22 | 3.45 |
| Quick Ratio(x) | 0.92 | 0.62 | 0.54 | 1.7 | 0.87 | 0.59 | 0.39 | 2.43 | 1.19 | 1.87 | 3.14 |
| Interest Cover(x) | 0.41 | 0.79 | 0.88 | 0.72 | -0.38 | 1.04 | -1.23 | 0.34 | 7.29 | 0.75 | 11.46 |
| Total Debt/Mcap(x) | 1.9 | 3.49 | 1.18 | 1.18 | 2.88 | 5.42 | 3.97 | 0.47 | 0.13 | 0 | 0.02 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 74.7 | 74.7 | 74.7 | 74.7 | 74.7 | 74.7 | 74.7 | 74.7 | 74.7 | 74.7 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 25.3 | 25.3 | 25.3 | 25.3 | 25.3 | 25.3 | 25.3 | 25.3 | 25.3 | 25.3 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 | 0.86 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 | 1.16 |
* The pros and cons are machine generated.
You May Also Know About
Looking to buy unlisted shares or need guidance on the investment process? Our expert Private Equity Advisors are here to assist you with accurate information, real-time pricing, and seamless execution.
Want to sell unlisted shares, liquidate your ESOPs, or understand the step-by-step process of liquidation? Connect with our Buying Team for smooth coordination, quick evaluations, and end-to-end support.
Planning to build or grow your portfolio? For Mutual Fund investments, PMS solutions, tailored portfolio creation, and overall wealth management, our dedicated Wealth Team is ready to guide you.