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Last Updated on: 22 February, 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.
Industrial ExplosivesSolar House, 14, Kachimet, Nagpur Maharashtra
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

Solar Industries India Ltd. Share Price Update

Share PriceValue
Previous Day₹6,913.30

Basic Stock Data of Solar Industries India Ltd

Market Cap 60,112 Cr.
Current Price 6,643
High / Low8,499/3,453
Stock P/E74.5
Book Value 316
Dividend Yield0.12 %
ROCE34.7 %
ROE33.4 %
Face Value 2.00

Data Source:

Competitors of Solar Industries India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Premier Explosives Ltd 1,536 Cr. 1,4291,688/35064.5 1980.12 %6.72 %3.64 % 10.0
Industry Average1 Cr164.51980.12%6.72%3.64%10

Solar Industries India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Operating Profit126132165175132178263283299350357323335
OPM %21%20%21%21%17%17%20%18%19%19%19%19%25%
Other Income2132111719471188
Profit before tax92110134140104144219247254299302272285
Tax %27%26%29%28%28%27%20%26%26%27%27%26%27%
Net Profit68819510175105175183189219221202209
EPS in Rs7.208.6210.0610.788.1511.2818.5518.8119.4922.6122.7821.8222.12

Solar Industries India Ltd Quarterly Chart

Solar Industries India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit1711832052543043244125024345157481,2891,365
OPM %19%17%19%20%21%20%21%20%19%20%19%19%20%
Other Income1941-213131294121193235
Profit before tax1541521642032642713404023363976071,1021,158
Tax %28%17%21%23%33%28%31%31%17%27%25%26%
Net Profit101126130156178195234277279288455811851
EPS in Rs11.6912.8513.0916.2918.0820.6124.3728.9129.5530.5448.7783.6889.33
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:21%
5 Years:29%
3 Years:46%
Compounded Profit Growth
10 Years:20%
5 Years:28%
3 Years:41%
Stock Price CAGR
10 Years:44%
5 Years:49%
3 Years:75%
1 Year:73%
Return on Equity
10 Years:24%
5 Years:25%
3 Years:27%
Last Year:33%

Solar Industries India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital17181818181818181818181818
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
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
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)
SBI Equity Hybrid Fund30757883.222069.24
SBI Focused Equity Fund23000004.911547.33
Kotak Emerging Equity Fund - Regular Plan20590153.61385.2
HDFC Mid-Cap Opportunities Fund - Regular Plan13609801.63915.6
Kotak Flexicap Fund - Regular Plan10000001.51672.75
Kotak Small Cap Fund - Regular Plan3786631.81254.75
Axis Midcap Fund2904690.8195.41
HDFC Defence Fund2480859.03166.9
PGIM India Midcap Opportunities Fund2365231.58159.12
Edelweiss Mid Cap Fund1871642.72125.91

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
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)
Total Debt / Equity (X)0.440.450.390.440.37
Asset Turnover Ratio (%)
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

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 / Intrinsic Value of Solar Industries India Ltd

Fair Value: ₹7872.46

The stock is undervalued by 18.51% compared to the current price ₹6643

*Investments are subject to market risks

Strength and Weakness of Solar Industries India Ltd

  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 is trading at a high valuation with an average P/B ratio of 70.72 and average Dividend Yield of 17.80%.
  2. The stock has a high average Working Capital Days of 84.42, which may not be favorable.
  3. 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 various financial indicators, investors might exercise caution regarding 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: 6.72%)
      • 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. 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.
    4. 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.
    5. ✗ Stock P/E: 74.5 (Industry average Stock P/E: 64.5)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar

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 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