Solar Industries India Ltd.
ISIN: INE343H01029 • Market Cap: ₹1.79 Lakh Cr
The 5-Pillar Quality Audit for Solar Industries India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (27.3%), Return on Capital Employed (30.2%), and equity compounding (26.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.23 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (23.2%) and 3Y PAT CAGR (34.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 89.97 vs PEG of 4.79 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 73.2%, backed by 19.8% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.2%)
Solar Industries India Ltd. generates exceptional return on capital employed of 30.2%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 26.7%)
Shareholder equity compounds at a healthy 26.7%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 23.2%)
Revenue has expanded at 23.2% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 34.7%)
Net earnings have compounded at 34.7% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 89.97)
A steep valuation multiple of 89.97 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Chemicals)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Chemicals space.
Quantitative Strategy Eligibility
Checking SOLARINDS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 80/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Chemicals Sector Peer Comparison
Compare SOLARINDS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Solar Industries India Ltd. (SOLARINDS)Current | 80/100 | ₹1.79 Lakh Cr | 89.97 | 30.2% | 0.23 | — |
| Pidilite Industries Ltd. (PIDILITIND) | 75/100 | ₹1.68 Lakh Cr | 63.40 | 28.7% | 0.01 | View |
| SRF Ltd. (SRF) | 73/100 | ₹76,329 Cr | 35.31 | 15.2% | 0.36 | View |
| Coromandel International Ltd. (COROMANDEL) | 72/100 | ₹60,148 Cr | 32.83 | 21.6% | 0.07 | View |
| Linde India Ltd. (LINDEINDIA) | 61/100 | ₹57,146 Cr | 104.59 | 12.2% | 0.00 | View |
| Gujarat Fluorochemicals Ltd. (FLUOROCHEM) | 55/100 | ₹51,405 Cr | 83.59 | 10.6% | 0.28 | View |
Frequently Asked Questions: Solar Industries India Ltd.
Q:What is the 5-Pillar Fundamental Score for Solar Industries India Ltd. (SOLARINDS)?
Solar Industries India Ltd. has a RupeeTools Fundamental Score of 80/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (83/100), Growth (92/100), Valuation (25/100), and Ownership Quality (82/100).
Q:Is SOLARINDS fundamentally strong for long-term investment?
Yes, SOLARINDS exhibits solid fundamental strength with a 80/100 score, driven by a return on equity of 26.7% and a debt-to-equity ratio of 0.23.
Q:Does SOLARINDS pass the Coffee Can Investing filter?
Yes! SOLARINDS satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does SOLARINDS compare against other Chemicals peers?
Within India's Chemicals sector, SOLARINDS trades at a P/E of 89.97 and generates an ROCE of 30.2%. Compare its 5-Pillar score of 80/100 against top sector peers like Pidilite Industries Ltd. (75/100), SRF Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.