Solar Industries (SOLARINDS)
FAST GROWERFairStock Score: 66/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹15,747 |
| Market Cap | ₹1,22,197.77 Cr |
| P/E Ratio | 84.15 |
| ROCE | 38.13% |
| ROE | 33.11% |
| Dividend Yield | 0.07% |
| Profit Growth | 16.18% |
| Debt/Equity | 0.17 |
| Sales Growth | 18.4% |
| Free Cash Flow | ₹80,800 Cr |
| Promoter Holding | 73.15% |
| 52-Week Range | ₹11,646 — ₹18,874 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹484.73 |
Strengths
- Exceptional profit growth rate of 41.7% annually
- Strong operational efficiency with 38.1% ROCE
- Leading position in explosives industry with infrastructure growth tailwinds
Concerns
- Very high P/E ratio of 84.2 indicating expensive valuation
- Low dividend yield of 0.1% provides minimal income
- DhanIQ Score of 4/10 suggests mixed fundamentals despite growth
AI Analysis
Solar Industries is a Fast Grower company — operating in India's explosives industry with a current market value of Rs 1.2 lakh crores. The data indicates impressive momentum with profit growth accelerating at 41.7% annually, significantly outpacing sales growth of 29.1%. This suggests the company is becoming more efficient at converting revenue into profits. The company demonstrates exceptional operational efficiency with a Return on Capital Employed of 38.1%, meaning every rupee invested generates strong returns. However, analysis suggests some valuation concerns as the stock trades at a P/E ratio of 84.2, indicating investors are paying a premium price relative to current earnings. At Rs 13,500 per share, the stock reflects high growth expectations. The explosives industry benefits from infrastructure development and mining activities, providing Solar Industries with expansion opportunities. The minimal dividend yield of 0.1% suggests management is reinvesting profits for growth rather than distributing to shareholders. The DhanIQ Score of 4/10 indicates mixed signals despite strong fundamentals. Investors may consider monitoring how the company sustains this growth rate and whether the current valuation premium is justified by future earnings potential. The key question remains whether Solar Industries can maintain its competitive positioning while continuing to deliver on high market expectations.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer