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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

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.
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 Satyanarayan NuwalManaging Director & CEO
Mr. Suresh MenonExecutive Director
Mr. Milind DeshmukhExecutive Director
Mr. Amrendra VermaInd. Non-Executive Director
Mr. Jagdish Chandra BelwalInd. Non-Executive Director
Mrs. Sujitha KarnadInd. Non-Executive Director
Mr. Natrajan RamkrishnaInd. Non-Executive Director

Basic Stock Data of Solar Industries India Ltd

Last Updated: June 17, 2024, 8:44 pm

Market Cap 89,568 Cr.
Current Price 9,898
High / Low10,450/3,453
Stock P/E107
Book Value 365
Dividend Yield0.09 %
ROCE29.9 %
ROE28.3 %
Face Value 2.00
PEG Ratio4.33

Competitors of Solar Industries India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Premier Explosives Ltd 3,795 Cr. 3,5293,660/426135 2050.05 %18.0 %13.5 % 10.0
Industry Average3,795.00 Cr3,529.00135.00205.000.05%18.00%13.50%10.00

Solar Industries India Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6467918257881,0181,3171,6161,5671,8121,9291,6821,3471,429
Expenses5146276516568401,0541,3331,2681,4621,5711,3591,0121,074
Operating Profit132165175132178263283299350357323335355
OPM %20%21%21%17%17%20%18%19%19%19%19%25%25%
Other Income13211171947118811
Interest11101012131514192531252528
Depreciation24232527273031303235343439
Profit before tax110134140104144219247254299302272285299
Tax %26%29%28%28%27%20%26%26%27%27%26%27%26%
Net Profit819510175105175183189219221202209222
EPS in Rs8.6210.0610.788.1511.2818.5518.8119.4922.6122.7821.8222.1222.47

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

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9101,0531,0731,2761,4491,5801,9162,4622,2372,5163,9486,9236,387
Expenses7398708681,0221,1441,2561,5051,9601,8032,0013,1995,6345,017
Operating Profit1711832052543043244125024345157481,2891,371
OPM %19%17%19%20%21%20%21%20%19%20%19%19%21%
Other Income1941-213131294121193238
Interest241820182027335055455090109
Depreciation13172231333951598594109128142
Profit before tax1541521642032642713404023363976071,1021,158
Tax %28%17%21%23%33%28%31%31%17%27%25%26%
Net Profit101126130156178195234277279288455811853
EPS in Rs11.6912.8513.0916.2918.0820.6124.3728.9129.5530.5448.7783.6889.19
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:21%
5 Years:26%
3 Years:45%
TTM:11%
Stock Price CAGR
10 Years:38%
5 Years:53%
3 Years:84%
1 Year:161%
Return on Equity
10 Years:25%
5 Years:26%
3 Years:29%
Last Year:28%

Last Updated: June 8, 2024, 10:05 pm

Solar Industries India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital17181818181818181818181818
Reserves3875556437587879101,0661,2201,3621,5611,8962,5922,841
Borrowings2963724843713985015186037088088881,1951,057
Other Liabilities1981632072433092923874113935728271,1041,239
Total Liabilities8991,1081,3521,3891,5121,7221,9882,2532,4812,9593,6294,9095,154
Fixed Assets2883724915857037779231,0431,2091,2881,4931,7021,782
CWIP506181613091107178165293230282307
Investments114925374053173321189978
Other Assets5506267557067398019401,0001,1051,3781,8882,8262,987
Total Assets8991,1081,3521,3891,5121,7221,9882,2532,4812,9593,6294,9095,154

Solar Industries India Ltd Reserves and Borrowings Chart

Solar Industries India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 48113170230243118254314325357298656
Cash from Investing Activity -141-155-161-149-141-170-174-254-260-253-338-614
Cash from Financing Activity 927231-177-9253-53-52-34-26-45118
Net Cash Flow-12941-961102793277-85160

Solar Industries India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days565463556874695960665044
Inventory Days88819483677380749911911392
Days Payable481424314536494346787341
Cash Conversion Cycle9612113410690111100901131089095
Working Capital Days891071141008687766480618168
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

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%73.15%
FIIs5.41%5.53%5.81%6.37%6.28%6.63%6.64%6.72%6.63%5.79%5.89%5.90%
DIIs16.84%16.66%16.19%15.43%15.16%14.73%14.60%14.45%14.32%15.01%15.24%15.05%
Public4.60%4.67%4.85%5.05%5.41%5.50%5.61%5.67%5.91%6.04%5.71%5.88%
No. of Shareholders14,51717,49725,07033,49628,75931,87239,40449,24751,94351,19950,10357,926

Solar Industries India Ltd Shareholding Pattern Chart

No. of Solar Industries India Ltd Shareholders

Solar Industries India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Equity Hybrid Fund3,075,7883.222069.24187,1642024-06-161543.37%
SBI Focused Equity Fund2,300,0004.911547.33187,1642024-06-161128.87%
Kotak Emerging Equity Fund - Regular Plan2,059,0153.61385.2187,1642024-06-161000.11%
HDFC Mid-Cap Opportunities Fund - Regular Plan1,360,9801.63915.6187,1642024-06-16627.16%
Kotak Flexicap Fund - Regular Plan1,000,0001.51672.75187,1642024-06-16434.29%
Kotak Small Cap Fund - Regular Plan378,6631.81254.75187,1642024-06-16102.32%
Axis Midcap Fund290,4690.8195.41187,1642024-06-1655.19%
HDFC Defence Fund248,0859.03166.9187,1642024-06-1632.55%
PGIM India Midcap Opportunities Fund236,5231.58159.12187,1642024-06-1626.37%
Edelweiss Mid Cap Fund187,1642.72125.91187,1642024-06-160%

Solar Industries India Ltd ROCE Trend

Solar Industries India Ltd EPS Trend

Solar Industries India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)83.6848.7730.5429.5528.91
Diluted EPS (Rs.)83.6848.7730.5429.5528.91
Cash EPS (Rs.)103.83114.7942.1740.1337.09
Book Value[Excl.RevalReserv]/Share (Rs.)303.94222.64181.45158.19142.09
Book Value[Incl.RevalReserv]/Share (Rs.)303.94222.64181.45158.19142.09
Revenue From Operations / Share (Rs.)764.92436.20277.97247.22272.00
PBDIT / Share (Rs.)145.90143.6559.2352.5357.09
PBIT / Share (Rs.)131.7479.1948.8943.1950.58
PBT / Share (Rs.)121.7567.1243.8837.1044.40
Net Profit / Share (Rs.)89.6650.3331.8330.7930.59
NP After MI And SOA / Share (Rs.)83.6748.7630.5429.5528.91
PBDIT Margin (%)19.0732.9321.3021.2420.98
PBIT Margin (%)17.2218.1517.5817.4618.59
PBT Margin (%)15.9115.3815.7815.0016.32
Net Profit Margin (%)11.7211.5311.4512.4511.24
NP After MI And SOA Margin (%)10.9311.1710.9811.9510.62
Return on Networth / Equity (%)29.0023.0517.4919.3721.12
Return on Capital Employeed (%)35.0227.4920.0121.7129.31
Return On Assets (%)15.0311.849.1210.5611.46
Long Term Debt / Equity (X)0.180.220.270.180.12
Total Debt / Equity (X)0.440.450.390.440.37
Asset Turnover Ratio (%)1.281.000.760.821.01
Current Ratio (X)1.531.491.501.341.35
Quick Ratio (X)0.850.840.950.890.95
Inventory Turnover Ratio (X)4.744.613.884.555.94
Dividend Payout Ratio (NP) (%)8.9612.3019.6423.6820.75
Dividend Payout Ratio (CP) (%)7.665.2914.6717.9916.93
Earning Retention Ratio (%)91.0487.7080.3676.3279.25
Cash Earning Retention Ratio (%)92.3494.7185.3382.0183.07
Interest Coverage Ratio (X)14.6111.9011.818.6410.36
Interest Coverage Ratio (Post Tax) (X)9.985.177.356.066.67
Enterprise Value (Cr.)34676.5926241.0212075.538774.7810164.84
EV / Net Operating Revenue (X)5.016.654.803.924.13
EV / EBITDA (X)26.2620.1822.5318.4619.67
MarketCap / Net Operating Revenue (X)4.866.434.603.683.96
Retention Ratios (%)91.0387.6980.3576.3179.24
Price / BV (X)12.8813.257.325.977.87
Price / Net Operating Revenue (X)4.866.434.603.683.96
EarningsYield0.020.010.020.030.02

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: 11,062.51

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: 11.77% compared to the current price 9898

Intrinsic Value: 13,797.66

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: 39.40% compared to the current price ₹9898

Last 5 Year EPS CAGR: 24.72%

*Investments are subject to market risks

Strength and Weakness of Solar Industries India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 23.33%, which is a positive sign.
  2. The company has higher reserves (1,275.23 cr) compared to borrowings (630.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (72.08 cr) and profit (253.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 84.42, which may not be favorable.
  2. 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: 107 (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 ₹11062.51.

What is the Market Cap of Solar Industries India Ltd?

The Market Cap of Solar Industries India Ltd is 89,568 Cr..

What is the current Stock Price of Solar Industries India Ltd as on 21 June 2024?

The current stock price of Solar Industries India Ltd as on 21 June 2024 is ₹9,898.

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 10,450/3,453.

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

The Stock P/E of Solar Industries India Ltd is 107.

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 0.09 %.

What is the ROCE of Solar Industries India Ltd?

The ROCE of Solar Industries India Ltd is 29.9 %.

What is the ROE of Solar Industries India Ltd?

The ROE of Solar Industries India Ltd is 28.3 %.

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