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Solar Industries (India) Ltd Stock Analysis

Mid Cap
Evaluated by 1978 users | BSE: 532725 | NSE: SOLARINDS |
Chemicals

Solar Explosives, a Solar group company was incorporated on February 24, 1995 by Satyanarayan Nuwal, Nandlal Nuwal and Kailashchandra Nuwal. The journey of “Solar” Group started in the year 1984 when a proprietary firm Solar Explosives was formed...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Solar Industries (India) Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 17.42%17.58%16.11%16.54%16.28%15.63%17.14%15.46%20.99%19.16%
Value Creation Index -0.07-0.01NANANANANANANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5347248879041,0151,0161,1371,2731,6631,512
Y-o-Y Gr. Rt.-35.5%22.6%1.9%12.3%0.2%11.9%12%30.6%-9.1%
Adjusted EPS (Rs.) 5.697.199.2311.0911.9311.5214.3614.4121.922.42
Y-o-Y Gr. Rt.-26.4%28.4%20.2%7.6%-3.4%24.7%0.4%52%2.4%
Book Value per Share (Rs.) 26.2731.1343.7250.3557.8660.5872.7883.8997.8112.86
Adjusted Net Profit 49.362.383.5100108104130130198203
Net Op. Cash Flow (Rs. Cr.) 29.9-30-3.882.115017470.2213210195
Debt to Cash Flow from Ops 4.58-7.82-60.823.091.031.013.50.710.820.66
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Solar Industries (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.3%8.3%10%-9.1%
Adjusted EPS 16.5%13.5%16%2.4%
Book Value per Share 17.614.315.815.4
Share Price 26% 13.4% 7% 45.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 23.4925.0625.0923.5822.0419.4521.5318.3924.1121.28
Operating Profit Margin (%) 1311.8112.3916.1815.3217.9519.0717.8519.1917.43
Net Profit Margin (%) 9.238.619.4111.110.6410.2511.4310.2411.9213.42
Debt to Equity 0.60.870.590.560.30.320.370.20.190.13
Working Capital Days 153137134147137141143152132150
Cash Conversion Cycle -9224457453343533842
Entity Percentage Holding
Promoters 73.15%
Institutions 22.25%
Non-Institutions 4.60%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Solar Industries (India) Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Solar Industries (India) Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Solar Industries (India) Ltd's performance infers:

Solar Industries (India) Ltd earnings have grown by 13.5%, whereas share price has appreciated 13.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Solar Industries (India) Ltd share prices over the last 10 years. Here is what we found out:

Solar Industries (India) Ltd share price has appreciated 27.4% annually over the past ten years.

Solar Explosives, a Solar group company was incorporated on February 24, 1995 by Satyanarayan Nuwal, Nandlal Nuwal and Kailashchandra Nuwal. The journey of “Solar” Group started in the year 1984 when a proprietary firm Solar Explosives was formed by Satyanarayan Nuwal for trading in Explosives. In this year one of the, then largest Indian Explosive manufacturing company awarded its first consignment agency to Solar Explosives. The name of Solar

Solar Explosives, a Solar group company was incorporated on February 24, 1995 by Satyanarayan Nuwal, Nandlal Nuwal and Kailashchandra Nuwal. The journey of “Solar” Group started in the year 1984 when a proprietary firm Solar Explosives was formed by Satyanarayan Nuwal for trading in Explosives. In this year one of the, then largest Indian Explosive manufacturing company awarded its first consignment agency to Solar Explosives. The name of Solar Explosives Limited got changed to Solar Industries India Limited and the trading symbol of the company on NSE was changed from SOLAREX to SOLARINDS with effect from April 13, 2009.

Solar Group has evolved from a single site manufacturing company in 1995 to a globally recognised Industrial Explosives manufacturer today. With extensive experience, expertise and potential founded on years of experience in the Industrial Explosives segment, the company has entered into Defence and setup one of the world’s most integrated facilities for Ammunition.

Its innovation edge is rooted in a strategic blend of talented manpower and technological prowess. The company bank on its rich experience to create sustainable value and intend to accelerate towards excellence at an impressive pace. The company employ a comprehensive suite of robust best practice policies, and are committed to the safety, health, and wellbeing of people, communities and the environment.

Business area of the company

The company is one of the largest domestic manufacturer and supplier of bulk and cartridge explosives, detonators, detonating cords, and components.

Products

  • Industrial Explosives
  • Defence

Milestones

  • 1983: Commenced explosives trading business
  • 1996: Started production of Detonators
  • 1998: Added Detonating Cord, Cast Booster and PETN to product portfolio
  • 2000: Commenced production of Packaged Explosives after being incorporated in 1995
  • 2001: Commenced production of Bulk Explosives
  • 2006: Listed shares on Bombay Stock Exchange and National Stock Exchange
  • 2006: Commenced Exports
  • 2007: Extended India presence by setting up new bulk plants
  • 2009: Emerged as India’s largest explosives manufacturer
  • 2009: Set up manufacturing units at Zambia and Nigeria
  • 2010: Ventured into Defence Segment for manufacturing HMX and Propellants
  • 2011-12: Set up manufacturing unit at Turkey
  • 2013: Commenced manufacturing of 3-layer shock tubes.
  • 2013: Started commercial production of Electronic Detonators
  • 2013: Introduced underground Bulk Explosives
  • 2015: Started supplying HMX and HMX Compounds
  • 2016: Set up facilities to manufacture Warhead Filling, Pyros, Ignitors, Propellants for Pinaka Mark-II
  • 2017: Operationalised plant in South Africa. Started getting Bulk Defence Order
  • 2018: Started Export of Defence Products
  • 2018: Received TOT for mass production of Crucial Solid Propellant Booster of BrahMos missiles
  • 2019: Defence turnover stood at Rs 170.20 crore for FY 18-19
  • 2020: Celebrating 25 Years of excellence in the field of Explosives
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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