Solar Industries India Limited
Solar Industries India Limited Fundamental Analysis
Solar Industries India Limited (SOLARINDS.BO) shows moderate financial fundamentals with a PE ratio of 97.80, profit margin of 17.05%, and ROE of 33.03%. The company generates $98.4B in annual revenue with strong year-over-year growth of 24.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -30.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SOLARINDS.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSOLARINDS.BO demonstrates superior asset utilization.
Valuation Score
WeakSOLARINDS.BO trades at a premium to fair value.
Growth Score
ExcellentSOLARINDS.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSOLARINDS.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateSOLARINDS.BO maintains healthy but balanced margins.
Key Financial Metrics
Is SOLARINDS.BO Expensive or Cheap?
P/E Ratio
SOLARINDS.BO trades at 97.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOLARINDS.BO's PEG of 2.53 indicates potential overvaluation.
Price to Book
The market values Solar Industries India Limited at 26.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 60.32 times EBITDA. This signals the market has high growth expectations.
How Well Does SOLARINDS.BO Make Money?
Net Profit Margin
For every $100 in sales, Solar Industries India Limited keeps $17.05 as profit after all expenses.
Operating Margin
Core operations generate 24.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.03 in profit for every $100 of shareholder equity.
ROA
Solar Industries India Limited generates $15.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Solar Industries India Limited generates limited operating cash flow of $958.63M, signaling weaker underlying cash strength.
Free Cash Flow
Solar Industries India Limited generates weak or negative free cash flow of $-6.67B, restricting financial flexibility.
FCF Per Share
Each share generates $-73.76 in free cash annually.
FCF Yield
SOLARINDS.BO converts -0.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
97.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
26.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How SOLARINDS.BO Stacks Against Its Sector Peers
| Metric | SOLARINDS.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 97.80 | 24.70 | Worse (Expensive) |
| ROE | 33.03% | 1017.00% | Weak |
| Net Margin | 17.05% | -111114.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 2.06 | 6.11 | Strong Liquidity |
| ROA | 15.36% | -6758.00% (disorted) | Strong |
SOLARINDS.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Solar Industries India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
237.01%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
352.23%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
659.67%
Industry Style: Cyclical, Commodity, Value
High Growth