Check Before You Invest : Solar Industries India Ltd

Snapshot

Q.1 Which industry/sub-sector does Solar Industries India Ltd belong to?

Solar Industries India Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Solar Industries India Ltd a good quality company?

Solar Industries India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Solar Industries India Ltd undervalued or overvalued?

Solar Industries India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Solar Industries India Ltd a good buy now?

Solar Industries India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Solar Industries India Ltd?

Solar Industries India Ltd revenue growth is 19.9% for FY-2025, which is below its 5-year CAGR of 24.14%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Solar Industries India Ltd?

Solar Industries India Ltd Return on capital employed is 37.37% for FY-2025, which is above its 5-year historical median of 33.85%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Solar Industries India Ltd?

Solar Industries India Ltd Return on Asset is 20.94%, which is above its 5-year historical median of 18.64%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Solar Industries India Ltd?

Solar Industries India Ltd Return on equity is 29.67% for FY-2025, which is in line with its 5-year historical median of 28.43%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Solar Industries India Ltd?

Solar Industries India Ltd Cash conversion cycle is 67 days, above its 5-year historical median of 52 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.17	1.25
ROE	29.67	28.43
ROCE	37.37	33.85
Cash Conversion Cycle	67 days	52 days

Q.6 Gross Profit margin of Solar Industries India Ltd?

Solar Industries India Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.6% for FY-2025, which is above its 5-year median of 18%, indicating increasing margins.

Q.7 Operating Profit Margin of Solar Industries India Ltd?

Solar Industries India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 24.62% for FY-2025, which is above its 5-year median of 17.23% indicating increasing margins.

Q.8 Net Profit Margin of Solar Industries India Ltd?

Solar Industries India Ltd Net Profit Margin is 18.02% for FY-2025, is above with its 5-year median of 11.93%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	25.6	18
Operating Profit Margin	24.62	17.23
Net Profit Margin	18.02	11.93

Q.9 Debt to Equity ratio of Solar Industries India Ltd?

Solar Industries India Ltd Debt-to-Equity ratio is 0.06, which is lower with the industry average of 0.07, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Solar Industries India Ltd?

Solar Industries India Ltd Debt to cash flow from operations is 0.19, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Solar Industries India Ltd?

Promoters hold 73.15% of the Solar Industries India Ltd, with 1.76% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Solar Industries India Ltd vs industry peers?

Solar Industries India Ltd revenue CAGR is 24.14%, compared to the industry median CAGR of 18.32%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.9	18.3
Gross Profit Growth	33.5	22.9
Operating Profit Growth	31.4	23.5
Net Profit Growth	34.7	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.17	1.17
ROE	29.67	25.44
ROCE	37.37	31.86
Cash Conversion Cycle (days)	67.35	55

Valuation & price assessment

Q.1 Stock return of Solar Industries India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 36.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	36.8%	66.1%	59.3%	18.4%

Q.3 Valuation ratios of Solar Industries India Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	130.46	111.55	27.93
Price to Book	36.45	25.84	2.22
Price to Sales	26.34	12.68	1.93
EV to EBITDA	89.73	73.15	14.18

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