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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532725 | NSE: SOLARINDS

Solar Industries India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:26 pm

Market Cap 90,341 Cr.
Current Price 9,984
High / Low13,300/5,909
Stock P/E89.4
Book Value 419
Dividend Yield0.09 %
ROCE32.5 %
ROE30.9 %
Face Value 2.00
PEG Ratio3.49

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Solar Industries India Ltd

Competitors of Solar Industries India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Premier Explosives Ltd 2,208 Cr. 411909/25392.1 43.80.12 %18.0 %13.5 % 2.00
Solar Industries India Ltd 90,341 Cr. 9,98413,300/5,90989.4 4190.09 %32.5 %30.9 % 2.00
Industry Average46,274.50 Cr5,197.5090.75231.400.11%25.25%22.20%2.00

All Competitor Stocks of Solar Industries India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8257881,0181,3171,6161,5671,8121,9291,6821,3471,4291,6111,695
Expenses6516568401,0541,3331,2681,4621,5711,3591,0121,0741,2571,245
Operating Profit175132178263283299350357323335355354449
OPM %21%17%17%20%18%19%19%19%19%25%25%22%27%
Other Income111719471188112026
Interest10121315141925312525283227
Depreciation25272730313032353434393740
Profit before tax140104144219247254299302272285299305408
Tax %28%28%27%20%26%26%27%27%26%27%26%21%26%
Net Profit10175105175183189219221202209222243301
EPS in Rs10.788.1511.2818.5518.8119.4922.6122.7821.8222.1222.4725.9831.66

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,0531,0731,2761,4491,5801,9162,4622,2372,5163,9486,9186,070
Expenses8708681,0221,1441,2561,5051,9601,8032,0013,1995,5824,588
Operating Profit1832052543043244125024345157481,3361,482
OPM %17%19%20%21%20%21%20%19%20%19%19%24%
Other Income41-21313129412119-16-68
Interest1820182027335055455090109
Depreciation172231333951598594109128143
Profit before tax1521642032642713404023363976071,1021,161
Tax %17%21%23%33%28%31%31%17%27%25%26%25%
Net Profit126130156178195234277279288455811875
EPS in Rs12.8513.0916.2918.0820.6124.3728.9129.5530.5448.7783.6892.38
Dividend Payout %17%0%21%25%24%25%24%20%20%15%10%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)3.17%20.00%14.10%9.55%20.00%18.38%0.72%3.23%57.99%78.24%7.89%
Change in YoY Net Profit Growth (%)0.00%16.83%-5.90%-4.55%10.45%-1.62%-17.65%2.50%54.76%20.26%-70.35%

Solar Industries India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:19%
5 Years:20%
3 Years:34%
TTM:-5%
Compounded Profit Growth
10 Years:22%
5 Years:28%
3 Years:49%
TTM:25%
Stock Price CAGR
10 Years:34%
5 Years:57%
3 Years:53%
1 Year:50%
Return on Equity
10 Years:26%
5 Years:28%
3 Years:31%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:49 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital18181818181818181818181818
Reserves5556437587879101,0661,2201,3621,5611,8962,5923,2883,776
Borrowings3724843713985015186037088088881,1951,1381,198
Other Liabilities1632072433092923874113935728271,1041,1341,685
Total Liabilities1,1081,3521,3891,5121,7221,9882,2532,4812,9593,6294,9095,5776,678
Fixed Assets3724915857037779231,0431,2091,2881,4931,7022,0282,336
CWIP6181613091107178165293230282490560
Investments49253740531733211899370192
Other Assets6267557067398019401,0001,1051,3781,8882,8262,6903,589
Total Assets1,1081,3521,3891,5121,7221,9882,2532,4812,9593,6294,9095,5776,678

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1131702302431182543143253572986561,406
Cash from Investing Activity +-155-161-149-141-170-174-254-260-253-338-614-1,021
Cash from Financing Activity +7231-177-9253-53-52-34-26-45118-370
Net Cash Flow2941-961102793277-8516015

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-189.00-279.00-117.00-94.00-177.00-106.00-101.00-274.00-293.00-140.000.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days546355687469596066504451
Inventory Days81948367738074991191139297
Days Payable142431453649434678734163
Cash Conversion Cycle1211341069011110090113108909584
Working Capital Days107114100868776648061816871
ROCE %21%18%19%23%22%24%26%19%19%25%36%32%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%
FIIs5.81%6.37%6.28%6.63%6.64%6.72%6.63%5.79%5.89%5.90%6.10%7.56%
DIIs16.19%15.43%15.16%14.73%14.60%14.45%14.32%15.01%15.24%15.05%14.52%12.74%
Public4.85%5.05%5.41%5.50%5.61%5.67%5.91%6.04%5.71%5.88%6.22%6.54%
No. of Shareholders25,07033,49628,75931,87239,40449,24751,94351,19950,10357,92664,37772,853

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Equity Hybrid Fund2,778,6563.892784.44236,5232024-11-201074.79%
SBI Focused Equity Fund1,527,1904.371530.37236,5232024-11-20545.68%
HDFC Mid-Cap Opportunities Fund - Regular Plan1,279,5481.821282.21236,5232024-11-20440.98%
Kotak Emerging Equity Fund - Regular Plan1,146,2372.341148.62236,5232024-11-20384.62%
Kotak Flexicap Fund - Regular Plan1,000,0001.961002.08236,5232024-11-20322.79%
Axis Midcap Fund350,4691.17351.2236,5232024-11-2048.18%
Kotak Small Cap Fund - Regular Plan238,7151.43239.21236,5232024-11-200.93%
PGIM India Midcap Opportunities Fund236,5232.14237.02236,5232024-11-200%
Edelweiss Mid Cap Fund169,7042.57170.06236,5232024-11-20-28.25%
Kotak Balanced Advantage Fund147,8830.91148.19236,5232024-11-20-37.48%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)92.3883.6848.7730.5429.55
Diluted EPS (Rs.)92.3883.6848.7730.5429.55
Cash EPS (Rs.)112.51103.83114.7942.1740.13
Book Value[Excl.RevalReserv]/Share (Rs.)378.70303.94222.64181.45158.19
Book Value[Incl.RevalReserv]/Share (Rs.)378.70303.94222.64181.45158.19
Revenue From Operations / Share (Rs.)670.66764.92436.20277.97247.22
PBDIT / Share (Rs.)156.21145.90143.6559.2352.53
PBIT / Share (Rs.)140.36131.7479.1948.8943.19
PBT / Share (Rs.)128.28121.7567.1243.8837.10
Net Profit / Share (Rs.)96.6789.6650.3331.8330.79
NP After MI And SOA / Share (Rs.)92.3783.6748.7630.5429.55
PBDIT Margin (%)23.2919.0732.9321.3021.24
PBIT Margin (%)20.9217.2218.1517.5817.46
PBT Margin (%)19.1215.9115.3815.7815.00
Net Profit Margin (%)14.4111.7211.5311.4512.45
NP After MI And SOA Margin (%)13.7710.9311.1710.9811.95
Return on Networth / Equity (%)25.2829.0023.0517.4919.37
Return on Capital Employeed (%)29.9835.0227.4920.0121.71
Return On Assets (%)14.5715.0311.849.1210.56
Long Term Debt / Equity (X)0.170.180.220.270.18
Total Debt / Equity (X)0.330.440.450.390.44
Asset Turnover Ratio (%)1.131.581.000.760.82
Current Ratio (X)1.761.531.491.501.34
Quick Ratio (X)1.200.850.840.950.89
Inventory Turnover Ratio (X)2.794.204.613.884.55
Dividend Payout Ratio (NP) (%)8.658.9612.3019.6423.68
Dividend Payout Ratio (CP) (%)7.397.665.2914.6717.99
Earning Retention Ratio (%)91.3591.0487.7080.3676.32
Cash Earning Retention Ratio (%)92.6192.3494.7185.3382.01
Interest Coverage Ratio (X)12.9314.6111.9011.818.64
Interest Coverage Ratio (Post Tax) (X)9.009.985.177.356.06
Enterprise Value (Cr.)80453.1134676.5926241.0212075.538774.78
EV / Net Operating Revenue (X)13.265.016.654.803.92
EV / EBITDA (X)56.9126.2620.1822.5318.46
MarketCap / Net Operating Revenue (X)13.104.866.434.603.68
Retention Ratios (%)91.3491.0387.6980.3576.31
Price / BV (X)24.0512.8813.257.325.97
Price / Net Operating Revenue (X)13.104.866.434.603.68
EarningsYield0.010.020.010.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Solar Industries India Ltd as of November 21, 2024 is: 11,585.12

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.

As of November 21, 2024, Solar Industries India Ltd is Undervalued by 16.04% compared to the current share price 9,984.00

Intrinsic Value of Solar Industries India Ltd as of November 21, 2024 is: 14,551.40

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Solar Industries India Ltd is Undervalued by 45.75% compared to the current share price 9,984.00

Last 5 Year EPS CAGR: 25.60%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.67%, which is a positive sign.
  2. The company has higher reserves (1,570.31 cr) compared to borrowings (706.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.25 cr) and profit (261.50 cr) over the years.
  1. The stock has a high average Working Capital Days of 82.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 103.50, which may not be favorable.

Stock Analysis

  • 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: 14.41%
      • 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: 29.98% (Industry Average ROCE: 25.25%)
      • 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%: 25.28% (Industry Average ROE: 22.2%)
      • 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
      • 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: 1.2
      • 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: 89.4 (Industry average Stock P/E: 90.75)
      • 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: 0.33
      • 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:

About the Company - Qualitative Analysis

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.
INDUSTRYADDRESSCONTACT
Industrial ExplosivesSolar House, 14, Kachimet, Nagpur Maharashtra 440023solar@solargroup.com
http://www.solargroup.com
Management
NamePosition Held
Mr. Satyanarayan NuwalChairman & Non-Exe.Director
Mr. Manish NuwalManaging Director & CEO
Mr. Suresh MenonExecutive Director
Mr. Milind DeshmukhExecutive Director
Mr. Natrajan RamkrishnaInd. Non-Executive Director
Mr. Jagdish Chandra BelwalInd. Non-Executive Director
Mrs. Rashmi PrasadInd. Non-Executive Director
Mr. Dinesh Kumar BatraInd. Non-Executive Director

FAQ

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

The latest intrinsic value of Solar Industries India Ltd as on 20 November 2024 is ₹11585.12, which is 16.04% higher than the current market price of ₹9,984.00.

What is the Market Cap of Solar Industries India Ltd?

The Market Cap of Solar Industries India Ltd is 90,341 Cr..

What is the current Stock Price of Solar Industries India Ltd as on 20 November 2024?

The current stock price of Solar Industries India Ltd as on 20 November 2024 is ₹9,984.

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 13,300/5,909.

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

The Stock P/E of Solar Industries India Ltd is 89.4.

What is the Book Value of Solar Industries India Ltd?

The Book Value of Solar Industries India Ltd is 419.

What is the Dividend Yield of Solar Industries India Ltd?

The Dividend Yield of Solar Industries India Ltd is 0.09 %.

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.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Solar Industries India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE