NSE: SOLARINDSChemicalsLarge Cap

Solar Industries India Ltd.

ISIN: INE343H01029 • Market Cap: ₹1.79 Lakh Cr

5-Pillar Score
80/100
Exceptional Quality
P/E Ratio89.97
ROCE30.2%
ROE26.7%
Debt to Equity0.23
3Y Sales CAGR23.2%
Promoter Holding73.2%
Detailed Quantitative Breakdown

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%
99/ 100

Measures operating margins (27.3%), Return on Capital Employed (30.2%), and equity compounding (26.7%).

2. Financial Health & Solvency

Weight: 25%
83/ 100

Debt-to-Equity is 0.23 with comfortable interest coverage and clean working capital.

3. Growth & Compounding Track Record

Weight: 20%
92/ 100

Historical 3Y Sales CAGR (23.2%) and 3Y PAT CAGR (34.7%).

4. Valuation Multiple & Margin of Safety

Weight: 15%
25/ 100

Trades at P/E of 89.97 vs PEG of 4.79 and Dividend Yield of 0.1%.

5. Ownership Quality & Governance

Weight: 15%
82/ 100

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.

Institutional Strategy Filters

Quantitative Strategy Eligibility

Checking SOLARINDS against established Indian wealth creation frameworks:

Eligible

Coffee Can Investing Framework

Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.

Top Quartile

Quality Factor Screener (High RoIC + Low Debt)

Qualifies for Indian Quality Indices with overall score of 80/100 and clean gearing.

Watchlist

GARP / Value-Growth Blend

Valuation multiple or return metrics require further cyclical pullback.

Industry Benchmark

Chemicals Sector Peer Comparison

Compare SOLARINDS directly against top industry peers by market capitalization:

Company5-Pillar ScoreMarket CapP/EROCED/EScorecard
Solar Industries India Ltd. (SOLARINDS)Current80/100₹1.79 Lakh Cr89.9730.2%0.23—
Pidilite Industries Ltd. (PIDILITIND)75/100₹1.68 Lakh Cr63.4028.7%0.01View
SRF Ltd. (SRF)73/100₹76,329 Cr35.3115.2%0.36View
Coromandel International Ltd. (COROMANDEL)72/100₹60,148 Cr32.8321.6%0.07View
Linde India Ltd. (LINDEINDIA)61/100₹57,146 Cr104.5912.2%0.00View
Gujarat Fluorochemicals Ltd. (FLUOROCHEM)55/100₹51,405 Cr83.5910.6%0.28View

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.