Why is Solar Industries India Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 29.52%
- Healthy long term growth as Net Sales has grown by an annual rate of 30.78% and Operating profit at 42.50%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.74 times
2
With a growth in Net Profit of 38.67%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 7 consecutive quarters
- DEBT-EQUITY RATIO(HY) Lowest at 0.17 times
- OPERATING PROFIT TO INTEREST(Q) Highest at 20.60 times
- PAT(Q) Highest at Rs 446.25 cr.
3
With ROE of 25.8, it has a Very Expensive valuation with a 24.5 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 45.83%, its profits have risen by 30.7% ; the PEG ratio of the company is 3.1
4
Majority shareholders : Promoters
5
Consistent Returns over the last 3 years
- Along with generating 45.83% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Solar Industries should be less than 10%
- Overall Portfolio exposure to Other Chemical products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Chemical products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Solar Industries for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Solar Industries
45.03%
1.45
31.03%
Sensex
8.49%
0.74
11.41%
Quality key factors
Factor
Value
Sales Growth (5y)
30.78%
EBIT Growth (5y)
42.50%
EBIT to Interest (avg)
13.33
Debt to EBITDA (avg)
0.96
Net Debt to Equity (avg)
0.09
Sales to Capital Employed (avg)
1.43
Tax Ratio
26.20%
Dividend Payout Ratio
7.48%
Pledged Shares
1.52%
Institutional Holding
19.64%
ROCE (avg)
29.73%
ROE (avg)
25.80%
Valuation Key Factors 
Factor
Value
P/E Ratio
95
Industry P/E
39
Price to Book Value
24.53
EV to EBIT
64.94
EV to EBITDA
58.48
EV to Capital Employed
22.62
EV to Sales
15.04
PEG Ratio
3.10
Dividend Yield
0.07%
ROCE (Latest)
34.83%
ROE (Latest)
25.82%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
23What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.17 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 20.60 times
PAT(Q)
Highest at Rs 446.25 cr.
NET SALES(Q)
Highest at Rs 2,548.32 cr
PBDIT(Q)
Highest at Rs 708.20 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 27.79%
PBT LESS OI(Q)
Highest at Rs 610.84 cr.
EPS(Q)
Highest at Rs 49.31
-2What is not working for the Company
INTEREST(Q)
Highest at Rs 34.38 cr
Loading Valuation Snapshot...
Here's what is working for Solar Industries
Operating Profit to Interest - Quarterly
Highest at 20.60 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
Highest at Rs 446.25 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 446.25 cr has Grown at 41.7%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.17 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 2,548.32 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 2,548.32 cr has Grown at 29.15%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 708.20 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 27.79%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 610.84 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 610.84 cr has Grown at 35.87%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 49.31
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Solar Industries
Interest - Quarterly
Highest at Rs 34.38 cr
in the last five quarters and Increased by 11.30 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)






