Solar Industries India Ltd.
Chemicals · NSE
52-week range
₹11,646 – ₹17,809
From 52w high
-9.6%
RSI (14)
70.6
vs SMA 50 / 200
↑ 50 · ↑ 200
Solar Industries India (SOLARINDS) is an explosives and defence-pyrotechnics manufacturer classified under Chemicals on NSE, currently trading at ₹16,105 — 22.2% above its level a year ago and 16.4% above its 200-DMA. The stock carries a trailing PE of 100x alongside a debt-to-equity ratio of 16.43, the highest leverage reading visible in the peer set, set against a 5-year earnings CAGR of 41.7% and a profit margin of 16.2%.
- ✓5-year revenue growth of 29.2% and earnings growth of 41.7% suggest sustained top-line expansion alongside accelerating bottom-line compounding over a multi-year cycle.
- ✓Profit margin of 16.2% is notable for an industrial chemicals and explosives business, reflecting pricing power or product-mix shift toward higher-margin defence segments.
- ✓Consistency score of 83 and FCF-positive in 4 of the measured years indicate the business has generated cash in most periods despite elevated capital intensity.
- ✓Mean analyst rating of 1.4 across 10 analysts (1–5 scale, lower = more constructive) reflects a concentrated and constructive coverage base; Goldman Sachs is among the named brokers cited in recent coverage.
- ✗D/E ratio of 16.43 with a rising debt trend is the single most material structural concern — leverage at this level in a non-financial sector company implies significant interest-burden sensitivity to earnings volatility or rate changes.
- ✗PE of 100x is the highest among all 6 peers in the Chemicals sector (peer range 29x–61x), and ROE data is unavailable, making it impossible to determine whether the valuation premium is supported by superior capital returns.
- ✗RSI of 70.57 and a 20.3% 3-month price appreciation place the stock in overbought technical territory, with the nearest support levels 16–20% below the current price (₹12,852 and ₹12,350).
- ✗Quality score of 57 ranks 5th of 6 peers in the sector despite the stock commanding the highest PE multiple; Pidilite leads at 66 with a PE of 61x, suggesting the market is assigning SOLARINDS a quality premium that the composite score does not yet validate.
- ·Goldman Sachs published a constructive note on SOLARINDS in April 2026, citing a price objective that implies a 33% move from the level at time of publication; the stock has since moved higher, partially compressing that gap.
- ·Nuvama highlighted SOLARINDS alongside BEL and Data Patterns as preferred defence-sector exposures in mid-April 2026, framing the pick relative to HAL and BDL on valuation and earnings visibility grounds.
- ·A regulatory IEPF share-transfer notice filing (April 2026) is a routine compliance disclosure and does not indicate any operational or governance event of note.
- ?Does the D/E ratio of 16.43 reflect project-financing structures typical for large government defence contracts, or does it represent balance-sheet leverage that would persist through a revenue slowdown?
- ?Is the 41.7% 5-year earnings CAGR driven primarily by the civil explosives business, the defence/pyrotechnics vertical, or both — and how concentrated is the revenue mix by end-customer (government vs. private)?
- ?With no resistance levels identified and the stock 9.6% below its 52-week high, what has historically driven the drawdown-to-recovery cycle for SOLARINDS during prior defence-capex slowdowns?
- ?Given that the quality score (57) ranks near the bottom of the sector peer group while the PE (100x) ranks at the top, what specific financial metrics would need to shift for the two rankings to converge?
PE
100.0
Forward PE
69.0
ROE
—
Profit margin
+16.2%
D/E
16.43
Dividend yield
+0.1%
Quality score
57/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.