Karma Energy Limited (KARMAENG) AI Stock Analysis

• Market Cap: ₹719.76M
• Dividend Yield: N/A
• Average Volume (3M): 6.75K
• Price to Earnings (P/E): 58.4
• Beta (1Y): 0.96
• Revenue Growth: -16.68%
• EPS Growth: 59.81%
• Country: IN
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): 0.53
• Shares Outstanding: 11,569,918
• 10 Day Avg. Volume: 1,317
• 30 Day Avg. Volume: 6,755
• PEG Ratio: 0.03
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 6.80
• P/FCF Ratio: 185.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹73.00
• Price Target Upside: 17.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ₹73.00 ▲(17.34% Upside)

Karma Energy Limited's stock score is primarily influenced by its financial performance and technical analysis. The company's financial challenges, including revenue volatility and inconsistent cash flows, are significant concerns. However, the technical indicators suggest some short-term bullish momentum. The high P/E ratio indicates potential overvaluation, which tempers the overall score.

Karma Energy Limited Business Overview & Revenue Model

Company Description

Karma Energy Limited generates power from renewable energy sources in India. It develops and operates wind farms with a capacity of 33 MW in the states of Andhra Pradesh, Maharashtra, and Tamil Nadu. The company also operates a 3.5 MW hydropower project. Karma Energy Limited was incorporated in 2007 and is based in Mumbai, India.

How the Company Makes Money

Karma Energy Limited generates revenue through multiple streams including the sale and installation of renewable energy systems, such as solar panels and wind turbines, to residential and commercial clients. The company also earns income from long-term power purchase agreements (PPAs) where it sells generated electricity back to the grid or directly to customers. In addition, KARMAENG offers energy consulting services that help organizations optimize their energy usage and transition to renewable sources, providing a consulting fee revenue stream. Strategic partnerships with local governments and energy providers further enhance its market reach and can lead to joint ventures on large projects, contributing significantly to its earnings.

Karma Energy Limited Financial Statement Overview

Summary

Karma Energy Limited exhibits a mixed financial profile with challenges in maintaining stable revenues and profits, as seen in the income statement. The balance sheet improvements, particularly in debt reduction and equity growth, are positive indicators of financial health. However, cash flow inconsistencies highlight operational challenges. The company needs to focus on sustaining revenue growth and profitability while managing cash flows to ensure long-term financial stability.

Income Statement

Karma Energy Limited's income statement reflects significant revenue volatility with a sharp decline in recent years, from 418.77 million in 2020 to 87.03 million in 2025. The company has struggled with profitability, evidenced by negative EBIT margins in several years, although the net income turned positive in 2023 and 2025. The gross profit margin has improved in 2025, indicating better cost management. However, the net profit margin remains unstable due to fluctuating revenues and costs.

Balance Sheet

The balance sheet shows a decreasing trend in total assets and liabilities, with a significant decline in total debt from 981.41 million in 2020 to 19.49 million in 2025. The company's debt-to-equity ratio has improved, reflecting reduced leverage. However, the equity ratio has been inconsistent, indicating potential volatility in asset and equity balances. The return on equity saw improvements in recent years, which is a positive sign for profitability from shareholders' perspective.

Cash Flow

Karma Energy's cash flow statement reveals inconsistent free cash flow, with periods of negative operating cash flow, notably in 2022. The free cash flow growth rate is erratic, reflecting challenges in maintaining stable cash generation. The operating cash flow to net income ratio indicates variable efficiency in converting profits into cash. Nevertheless, recent improvements in free cash flow suggest potential stabilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	93.65M	87.03M	123.52M	128.08M	275.35M	252.84M
Gross Profit	55.85M	55.35M	82.95M	82.09M	26.69M	50.63M
EBITDA	34.95M	36.07M	30.32M	131.76M	62.38M	-7.87M
Net Income	12.33M	15.60M	1.24M	58.90M	-21.26M	-132.74M
Balance Sheet
Total Assets	0.00	519.99M	500.44M	554.68M	634.04M	1.19B
Cash, Cash Equivalents and Short-Term Investments	5.77M	5.77M	907.00K	2.95M	110.02M	110.61M
Total Debt	0.00	19.48M	10.79M	62.84M	188.03M	933.65M
Total Liabilities	-399.79M	120.19M	116.02M	169.95M	331.91M	1.09B
Stockholders Equity	399.79M	399.79M	384.43M	384.73M	302.13M	98.91M
Cash Flow
Free Cash Flow	0.00	3.19M	35.24M	49.62M	-10.95M	99.66M
Operating Cash Flow	0.00	16.60M	44.31M	49.62M	-10.90M	106.29M
Investing Cash Flow	0.00	-18.93M	6.87M	85.45M	501.83M	14.03M
Financing Cash Flow	0.00	7.20M	-53.22M	-134.91M	-493.89M	-118.30M

Karma Energy Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KARMAENG, the sentiment is Positive. The current price of 62.21 is above the 20-day moving average (MA) of 61.04, above the 50-day MA of 56.42, and above the 200-day MA of 60.33, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 58.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:KARMAENG.

Karma Energy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ZODIAC	61 Neutral	₹5.65B	27.74	―	0.20%	59.55%	58.31%
INOXGREEN	59 Neutral	₹94.10B	246.80	―	―	14.36%	3.96%
INDOSOLAR	57 Neutral	₹28.13B	13.18	―	―	2412.32%	―
KARMAENG	53 Neutral	₹719.76M	58.38	―	―	-16.68%	59.81%
INDOWIND	47 Neutral	₹2.00B	102.78	―	―	0.25%	-76.76%
SWSOLAR	45 Neutral	₹56.76B	51.96	―	―	112.24%	-474.43%

Karma Energy Limited Corporate Events

Karma Energy Limited Penalized by SEBI for Regulatory Non-Compliance

Karma Energy Limited has been fined Rs. 2,00,000 by the Securities and Exchange Board of India (SEBI) for failing to obtain prior shareholder approval before entering into a Material Related Party Transaction with Tapi Energy Projects Ltd and not updating its Related Party policy as required. Despite the penalty, the company reports no material impact on its financial, operational, or other activities, indicating that the fine does not significantly affect its business operations.