SOLARINDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | SOLARINDS | Market Cap | 1,39,708 Cr. | Current Price | 15,439 ₹ | High / Low | 17,820 ₹ |
| Stock P/E | 130 | Book Value | 387 ₹ | Dividend Yield | 0.06 % | ROCE | 37.3 % |
| ROE | 29.7 % | Face Value | 2.00 ₹ | DMA 50 | 14,135 ₹ | DMA 200 | 13,546 ₹ |
| Chg in FII Hold | -0.15 % | Chg in DII Hold | -0.02 % | PAT Qtr | 329 Cr. | PAT Prev Qtr | 235 Cr. |
| RSI | 64.4 | MACD | 496 | Volume | 97,854 | Avg Vol 1Wk | 1,11,432 |
| Low price | 11,641 ₹ | High price | 17,820 ₹ | PEG Ratio | 2.87 | Debt to equity | 0.05 |
| 52w Index | 61.5 % | Qtr Profit Var | 61.2 % | EPS | 118 ₹ | Industry PE | 28.5 |
📊 SOLARINDS demonstrates strong fundamentals with excellent ROCE (37.3%) and ROE (29.7%), reflecting superior capital efficiency and shareholder returns. The company is virtually debt-free (Debt-to-equity: 0.05), ensuring financial stability. EPS of ₹118 provides robust earnings visibility, and quarterly PAT growth (+61.2% QoQ) highlights strong profitability momentum. However, valuations are stretched with P/E (130) compared to industry average (28.5), and PEG ratio (2.87) suggests expensive growth relative to earnings. Current price ₹15,439 is near DMA 50 (₹14,135) and DMA 200 (₹13,546), indicating bullish momentum. Entry zone is attractive near ₹14,000–14,500 for accumulation.
💡 Long-term investors may hold with a 5+ year horizon, given strong fundamentals and sector tailwinds. Exit strategy: partial profit booking near ₹17,500–17,800 resistance or full exit if earnings growth slows or valuations expand further without support.
Positive
- 📈 Strong ROCE (37.3%) and ROE (29.7%).
- 💰 Virtually debt-free balance sheet (Debt-to-equity: 0.05).
- 📊 EPS of ₹118 supports robust earnings visibility.
- 📈 PAT growth (+61.2% QoQ) highlights strong profitability momentum.
Limitation
- ⚠️ Very high P/E (130 vs industry 28.5) indicates overvaluation.
- 📉 Dividend yield of 0.06% offers negligible passive income.
- 📊 PEG ratio (2.87) reflects expensive valuation relative to growth.
Company Negative News
- 📉 FII holding decreased (-0.15%), showing reduced foreign investor confidence.
- 📊 DII holding decreased (-0.02%), reflecting slight domestic caution.
Company Positive News
- 📈 Quarterly profit variation (+61.2%) highlights strong earnings growth.
- 📊 Technicals: RSI at 64.4 and MACD positive (496), indicating bullish momentum.
Industry
- 🏭 Industry PE at 28.5 is much lower than SOLARINDS’s 130, highlighting premium valuation.
- ⚡ Explosives and defense-linked sector benefits from infrastructure expansion and defense demand.
Conclusion
⚖️ SOLARINDS is a fundamentally strong candidate for long-term investment with excellent ROCE, ROE, and low debt, but valuations are stretched. Ideal entry is near ₹14,000–14,500. Long-term investors may hold for compounding benefits, but cautious monitoring of valuations and earnings growth is essential. Exit near ₹17,500–17,800 or on deterioration of profitability metrics.
This structured HTML report captures SOLARINDS’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against Bharat Dynamics, BEL, and Garden Reach Shipbuilders to highlight relative positioning in the defense and explosives sector?