Fundamental Analysis of Solar Industries India Ltd

About the Company - Solar Industries India Ltd

Solar Industries India Ltd. is a Public Limited Listed company incorporated on 24/02/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L74999MH1995PLC085878 and registration number is 085878. Currently Company is involved in the business activities of Manufacture of explosives, ammunition and fire works. Company’s Total Operating Revenue is Rs. 2528.34 Cr. and Equity Capital is Rs. 18.10 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Industrial Explosives	Solar House, 14, Kachimet, Nagpur Maharashtra 440023	solar@solargroup.com http://www.solargroup.com

Management
Name	Position Held
Mr. Satyanarayan Nuwal	Chairman & Non-Exe.Director
Mr. Manish Nuwal	Managing Director & CEO
Mr. Suresh Menon	Executive Director
Mr. Milind Deshmukh	Executive Director
Mr. Natrajan Ramkrishna	Ind. Non-Executive Director
Mr. Jagdish Chandra Belwal	Ind. Non-Executive Director
Mrs. Rashmi Prasad	Ind. Non-Executive Director
Mr. Dinesh Kumar Batra	Ind. Non-Executive Director

Basic Stock Data of Solar Industries India Ltd

Last Updated: July 6, 2024, 12:28 pm

Market Cap	1,10,042 Cr.
Current Price	12,161
High / Low	12,539/3,453
Stock P/E	120
Book Value	365
Dividend Yield	0.07 %
ROCE	32.5 %
ROE	30.9 %
Face Value	2.00
PEG Ratio	4.85

Competitors of Solar Industries India Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Premier Explosives Ltd	4,076 Cr.	758	909/95.7	145	40.9	0.04 %	18.0 %	13.5 %	2.00
Industry Average	4,076.00 Cr	758.00		145.00	40.90	0.04%	18.00%	13.50%	2.00

Solar Industries India Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	646	791	825	788	1,018	1,317	1,616	1,567	1,812	1,929	1,682	1,347	1,429
Expenses	514	627	651	656	840	1,054	1,333	1,268	1,462	1,571	1,359	1,012	1,074
Operating Profit	132	165	175	132	178	263	283	299	350	357	323	335	355
OPM %	20%	21%	21%	17%	17%	20%	18%	19%	19%	19%	19%	25%	25%
Other Income	13	2	1	11	7	1	9	4	7	11	8	8	11
Interest	11	10	10	12	13	15	14	19	25	31	25	25	28
Depreciation	24	23	25	27	27	30	31	30	32	35	34	34	39
Profit before tax	110	134	140	104	144	219	247	254	299	302	272	285	299
Tax %	26%	29%	28%	28%	27%	20%	26%	26%	27%	27%	26%	27%	26%
Net Profit	81	95	101	75	105	175	183	189	219	221	202	209	222
EPS in Rs	8.62	10.06	10.78	8.15	11.28	18.55	18.81	19.49	22.61	22.78	21.82	22.12	22.47

Last Updated: June 7, 2024, 8:29 am

Solar Industries India Ltd Quarterly Chart

Solar Industries India Ltd Profit & Loss

Last Updated: May 30, 2024, 10:39 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	910	1,053	1,073	1,276	1,449	1,580	1,916	2,462	2,237	2,516	3,948	6,923	6,387
Expenses	739	870	868	1,022	1,144	1,256	1,505	1,960	1,803	2,001	3,199	5,634	5,017
Operating Profit	171	183	205	254	304	324	412	502	434	515	748	1,289	1,371
OPM %	19%	17%	19%	20%	21%	20%	21%	20%	19%	20%	19%	19%	21%
Other Income	19	4	1	-2	13	13	12	9	41	21	19	32	38
Interest	24	18	20	18	20	27	33	50	55	45	50	90	109
Depreciation	13	17	22	31	33	39	51	59	85	94	109	128	142
Profit before tax	154	152	164	203	264	271	340	402	336	397	607	1,102	1,158
Tax %	28%	17%	21%	23%	33%	28%	31%	31%	17%	27%	25%	26%
Net Profit	101	126	130	156	178	195	234	277	279	288	455	811	853
EPS in Rs	11.69	12.85	13.09	16.29	18.08	20.61	24.37	28.91	29.55	30.54	48.77	83.68	89.19
Dividend Payout %	17%	17%	0%	21%	25%	24%	25%	24%	20%	20%	15%	10%

Solar Industries India Ltd Profit & Loss Yearly Chart

Solar Industries India Ltd Growth

Compounded Sales Growth
10 Years:	19%
5 Years:	20%
3 Years:	34%
TTM:	-12%

Compounded Profit Growth
10 Years:	22%
5 Years:	28%
3 Years:	49%
TTM:	16%

Stock Price CAGR
10 Years:	39%
5 Years:	56%
3 Years:	90%
1 Year:	196%

Return on Equity
10 Years:	26%
5 Years:	28%
3 Years:	31%
Last Year:	31%

Last Updated: June 30, 2024, 5:19 pm

Solar Industries India Ltd Balance Sheet

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	17	18	18	18	18	18	18	18	18	18	18	18	18
Reserves	387	555	643	758	787	910	1,066	1,220	1,362	1,561	1,896	2,592	2,841
Borrowings	296	372	484	371	398	501	518	603	708	808	888	1,195	1,057
Other Liabilities	198	163	207	243	309	292	387	411	393	572	827	1,104	1,239
Total Liabilities	899	1,108	1,352	1,389	1,512	1,722	1,988	2,253	2,481	2,959	3,629	4,909	5,154
Fixed Assets	288	372	491	585	703	777	923	1,043	1,209	1,288	1,493	1,702	1,782
CWIP	50	61	81	61	30	91	107	178	165	293	230	282	307
Investments	11	49	25	37	40	53	17	33	2	1	18	99	78
Other Assets	550	626	755	706	739	801	940	1,000	1,105	1,378	1,888	2,826	2,987
Total Assets	899	1,108	1,352	1,389	1,512	1,722	1,988	2,253	2,481	2,959	3,629	4,909	5,154

Solar Industries India Ltd Reserves and Borrowings Chart

Solar Industries India Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	48	113	170	230	243	118	254	314	325	357	298	656
Cash from Investing Activity	-141	-155	-161	-149	-141	-170	-174	-254	-260	-253	-338	-614
Cash from Financing Activity	92	72	31	-177	-92	53	-53	-52	-34	-26	-45	118
Net Cash Flow	-1	29	41	-96	11	0	27	9	32	77	-85	160

Solar Industries India Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	56	54	63	55	68	74	69	59	60	66	50	44
Inventory Days	88	81	94	83	67	73	80	74	99	119	113	92
Days Payable	48	14	24	31	45	36	49	43	46	78	73	41
Cash Conversion Cycle	96	121	134	106	90	111	100	90	113	108	90	95
Working Capital Days	89	107	114	100	86	87	76	64	80	61	81	68
ROCE %	29%	21%	18%	19%	23%	22%	24%	26%	19%	19%	25%	35%

Solar Industries India Ltd Financial Efficiency Indicators Chart

Solar Industries India Ltd Share Holding Pattern

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Promoters	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%	73.15%
FIIs	5.41%	5.53%	5.81%	6.37%	6.28%	6.63%	6.64%	6.72%	6.63%	5.79%	5.89%	5.90%
DIIs	16.84%	16.66%	16.19%	15.43%	15.16%	14.73%	14.60%	14.45%	14.32%	15.01%	15.24%	15.05%
Public	4.60%	4.67%	4.85%	5.05%	5.41%	5.50%	5.61%	5.67%	5.91%	6.04%	5.71%	5.88%
No. of Shareholders	14,517	17,497	25,070	33,496	28,759	31,872	39,404	49,247	51,943	51,199	50,103	57,926

Solar Industries India Ltd Shareholding Pattern Chart

No. of Solar Industries India Ltd Shareholders

Solar Industries India Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
SBI Equity Hybrid Fund	3,075,788	3.22	2069.24	3,075,788	2024-07-05	0%
SBI Focused Equity Fund	2,300,000	4.91	1547.33	3,075,788	2024-07-05	-25.22%
Kotak Emerging Equity Fund - Regular Plan	2,059,015	3.6	1385.2	3,075,788	2024-07-05	-33.06%
HDFC Mid-Cap Opportunities Fund - Regular Plan	1,360,980	1.63	915.6	3,075,788	2024-07-05	-55.75%
Kotak Flexicap Fund - Regular Plan	1,000,000	1.51	672.75	3,075,788	2024-07-05	-67.49%
Kotak Small Cap Fund - Regular Plan	378,663	1.81	254.75	3,075,788	2024-07-05	-87.69%
Axis Midcap Fund	290,469	0.8	195.41	3,075,788	2024-07-05	-90.56%
HDFC Defence Fund	248,085	9.03	166.9	3,075,788	2024-07-05	-91.93%
PGIM India Midcap Opportunities Fund	236,523	1.58	159.12	3,075,788	2024-07-05	-92.31%
Edelweiss Mid Cap Fund	187,164	2.72	125.91	3,075,788	2024-07-05	-93.91%

Solar Industries India Ltd ROCE Trend

Solar Industries India Ltd EPS Trend

Solar Industries India Ltd Key Financial Ratios

Month	Mar 23	Mar 22	Mar 21	Mar 20	Mar 19
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	83.68	48.77	30.54	29.55	28.91
Diluted EPS (Rs.)	83.68	48.77	30.54	29.55	28.91
Cash EPS (Rs.)	103.83	114.79	42.17	40.13	37.09
Book Value[Excl.RevalReserv]/Share (Rs.)	303.94	222.64	181.45	158.19	142.09
Book Value[Incl.RevalReserv]/Share (Rs.)	303.94	222.64	181.45	158.19	142.09
Revenue From Operations / Share (Rs.)	764.92	436.20	277.97	247.22	272.00
PBDIT / Share (Rs.)	145.90	143.65	59.23	52.53	57.09
PBIT / Share (Rs.)	131.74	79.19	48.89	43.19	50.58
PBT / Share (Rs.)	121.75	67.12	43.88	37.10	44.40
Net Profit / Share (Rs.)	89.66	50.33	31.83	30.79	30.59
NP After MI And SOA / Share (Rs.)	83.67	48.76	30.54	29.55	28.91
PBDIT Margin (%)	19.07	32.93	21.30	21.24	20.98
PBIT Margin (%)	17.22	18.15	17.58	17.46	18.59
PBT Margin (%)	15.91	15.38	15.78	15.00	16.32
Net Profit Margin (%)	11.72	11.53	11.45	12.45	11.24
NP After MI And SOA Margin (%)	10.93	11.17	10.98	11.95	10.62
Return on Networth / Equity (%)	29.00	23.05	17.49	19.37	21.12
Return on Capital Employeed (%)	35.02	27.49	20.01	21.71	29.31
Return On Assets (%)	15.03	11.84	9.12	10.56	11.46
Long Term Debt / Equity (X)	0.18	0.22	0.27	0.18	0.12
Total Debt / Equity (X)	0.44	0.45	0.39	0.44	0.37
Asset Turnover Ratio (%)	1.28	1.00	0.76	0.82	1.01
Current Ratio (X)	1.53	1.49	1.50	1.34	1.35
Quick Ratio (X)	0.85	0.84	0.95	0.89	0.95
Inventory Turnover Ratio (X)	4.74	4.61	3.88	4.55	5.94
Dividend Payout Ratio (NP) (%)	8.96	12.30	19.64	23.68	20.75
Dividend Payout Ratio (CP) (%)	7.66	5.29	14.67	17.99	16.93
Earning Retention Ratio (%)	91.04	87.70	80.36	76.32	79.25
Cash Earning Retention Ratio (%)	92.34	94.71	85.33	82.01	83.07
Interest Coverage Ratio (X)	14.61	11.90	11.81	8.64	10.36
Interest Coverage Ratio (Post Tax) (X)	9.98	5.17	7.35	6.06	6.67
Enterprise Value (Cr.)	34676.59	26241.02	12075.53	8774.78	10164.84
EV / Net Operating Revenue (X)	5.01	6.65	4.80	3.92	4.13
EV / EBITDA (X)	26.26	20.18	22.53	18.46	19.67
MarketCap / Net Operating Revenue (X)	4.86	6.43	4.60	3.68	3.96
Retention Ratios (%)	91.03	87.69	80.35	76.31	79.24
Price / BV (X)	12.88	13.25	7.32	5.97	7.87
Price / Net Operating Revenue (X)	4.86	6.43	4.60	3.68	3.96
EarningsYield	0.02	0.01	0.02	0.03	0.02

Solar Industries India Ltd Profitability Ratios (%)

Solar Industries India Ltd Liquidity Ratios

Solar Industries India Ltd Liquidity Ratios (%)

Solar Industries India Ltd Interest Coverage Ratios (X)

Solar Industries India Ltd Valuation Ratios

Fair Value

Fair Value: 13,543.67

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.37% compared to the current price 12161

Intrinsic Value: 16,892.28

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 38.91% compared to the current price ₹12161

Last 5 Year EPS CAGR: 24.72%

*Investments are subject to market risks

Strength and Weakness of Solar Industries India Ltd

Strength	Weakness
The stock has a high average ROCE of 23.33%, which is a positive sign. The company has higher reserves (1,275.23 cr) compared to borrowings (630.69 cr), indicating strong financial stability. The company has shown consistent growth in sales (72.08 cr) and profit (253.23 cr) over the years.	The stock has a high average Working Capital Days of 84.42, which may not be favorable. The stock has a high average Cash Conversion Cycle of 104.50, which may not be favorable.

Should I Buy Solar Industries India Ltd Share Now?

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Solar Industries India Ltd:
1. ✓ Net Profit Margin: 11.72%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 35.02% (Industry Average ROCE: 29.9%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 29.00% (Industry Average ROE: 28.3%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. ✓ Interest Coverage Ratio (Post Tax): 9.98
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. ✗ Quick Ratio: 0.85
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. ✗ Stock P/E: 120 (Industry average Stock P/E: 101)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.44
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating: ★★★★☆

FAQ

What is the latest fair value of Solar Industries India Ltd?

The latest fair value of Solar Industries India Ltd is ₹13543.67.

What is the Market Cap of Solar Industries India Ltd?

The Market Cap of Solar Industries India Ltd is 1,10,042 Cr..

What is the current Stock Price of Solar Industries India Ltd as on 06 July 2024?

The current stock price of Solar Industries India Ltd as on 06 July 2024 is 12,161.

What is the High / Low of Solar Industries India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Solar Industries India Ltd stocks is 12,539/3,453.

What is the Stock P/E of Solar Industries India Ltd?

The Stock P/E of Solar Industries India Ltd is 120.

What is the Book Value of Solar Industries India Ltd?

The Book Value of Solar Industries India Ltd is 365.

What is the Dividend Yield of Solar Industries India Ltd?

The Dividend Yield of Solar Industries India Ltd is 0.07 %.

What is the ROCE of Solar Industries India Ltd?

The ROCE of Solar Industries India Ltd is 32.5 %.

What is the ROE of Solar Industries India Ltd?

The ROE of Solar Industries India Ltd is 30.9 %.

What is the Face Value of Solar Industries India Ltd?

The Face Value of Solar Industries India Ltd is 2.00.