Solar Industries India Receives 'Buy' Rating from MarketsMOJO, Strong Fundamentals and Growth Drive Upgrade

Solar Industries India, a leading player in the chemicals industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, healthy growth, and ability to service debt.
One of the key factors contributing to the 'Buy' rating is the company's average Return on Capital Employed (ROCE) of 25.08%, indicating a strong long-term performance. Additionally, the company has shown consistent growth with an annual operating profit growth rate of 22.72%.

The stock is also technically in a bullish range, with multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV all pointing towards a positive trend. Furthermore, the company has a high institutional holding of 20.96%, indicating their confidence in the company's fundamentals.

Over the last 3 years, Solar Industries India has consistently outperformed the BSE 500 index and has generated impressive returns of 184.47%. With a market cap of Rs 98,540 crore, it is the largest company in the sector and accounts for 16.28% of the entire industry's market share.

However, there are some risks to consider, such as the company's flat results in March 2024, with a decline in net sales and a low operating profit to interest ratio. Additionally, the company's valuation is on the higher side with a ROCE of 31.1 and an enterprise value to capital employed ratio of 25.1.

Despite these risks, Solar Industries India has a strong track record and is trading at a discount compared to its historical valuations. With a PEG ratio of 11.3, the stock is still considered a good investment option for those looking for long-term growth in the chemicals industry.