Solar Industries India Ltd.
NSE: SOLARINDSSolar Industries India Ltd.: A 30-second snapshot
Solar Industries India (SOLARINDS) is a Chemicals-sector explosives and defence-products manufacturer trading at ₹18,203, up 32.34% over 3 months and 14.62% over the past year, within 3.56% of its 52-week high. The company reported ROE of 31.33% — highest among its 6 tracked sector peers — alongside 5-year revenue CAGR of 40.9% and earnings CAGR of 70%, but carries a debt-to-equity ratio of 23.271 on a rising debt trend. Trailing PE of 97.8x compares to a sector peer range of 26.9x–60.7x, with forward PE of 54.6x indicating the market has priced in substantial earnings growth.
P/E
97.8
Forward P/E
54.6
ROE
+31.3%
Debt / Equity
23.27
Profit Margin
+17.1%
Div. Yield
+0.1%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
69/100
News
8 headlines · 6 positive · 0 negative
Solar Industries India Ltd Gets Order Worth 10.76 Billion Rupees - TradingView
TradingView
Solar Industries India Limited Receives Export Order Worth INR 10,760 Million for Supply of Defence Products - marketscreener.com
marketscreener.com
Party Time: Brokers Just Made Major Increases To Their Solar Industries India Limited (NSE:SOLARINDS) Earnings Forecasts - simplywall.st
simplywall.st
SOLARINDS: Strong revenue and profit growth, dividend hike, and major acquisition drive FY26 results - TradingView
TradingView
Solar Industries India Opening Bell Updates: Export Orders Propel Stock Higher - LatestLY
LatestLY
Recent context
- ·On 29 May 2026 the company disclosed a defence export order worth ₹10,760 million (₹1,076 crore), representing incremental revenue visibility in its defence segment; the stock was reported moving higher on the day of the announcement.
- ·A May 2026 broker note cited by simplywall.st reported major increases to consensus earnings forecasts following FY26 results; the analyst rating across 12 analysts stands at 1.25 on a 1–5 scale (lower = more constructive).
- ·FY26 results described in May coverage showed strong revenue and profit growth, a dividend increase, and a major acquisition; no negative news items appeared across the 8 tracked headlines.
Strengths
- +ROE of 31.33% ranks 1st of 6 tracked Chemicals sector peers; nearest peer (PIDILITIND) is at 23.52%, with the remaining four below 16%.
- +5-year revenue growth of 40.9% CAGR and 5-year earnings growth of 70% CAGR reflect a multi-year expansion trajectory uncommon in the broader Chemicals peer group.
- +Stock is above both the 50-DMA (₹15,416) and 200-DMA (₹14,068), with current price representing a 18.1% premium over the 50-DMA and a 29.4% premium over the 200-DMA.
- +Quality score of 61 ranks 2nd of 6 in the sector peer group, above SRF (41), UPL (44), PIIND (23), and COROMANDEL (30), with only PIDILITIND (66) higher.
Weaknesses
- −D/E of 23.271 is on a rising trend and represents a structural outlier relative to all 5 sector peers; no peer in the tracked group approaches this leverage level, raising questions about debt serviceability in a demand downturn.
- −Trailing PE of 97.8x is the highest of the 6-peer group (range 26.9x–60.7x); the forward PE of 54.6x implies the consensus expects a material earnings step-up, and FCF has been positive in only 3 of tracked years, providing limited buffer if that trajectory is not met.
- −Support levels are clustered between ₹12,000 and ₹12,852 — a gap of 29–34% below the current price of ₹18,203 — with no resistance levels identified above, creating an asymmetric distance between current price and nearest established floor.
- −Dividend yield of 0.06% is negligible; the company reinvests rather than distributes, which concentrates investor returns entirely on price appreciation and earnings growth realisation.
Open questions
- ?Does the D/E of 23.271 reflect the capital structure of the explosives/defence manufacturing business specifically, or a recent acquisition-driven step-up — and what is management's stated path for deleveraging?
- ?The forward PE of 54.6x implies a significant earnings acceleration from the current 97.8x trailing multiple: what specific revenue and margin assumptions underpin that compression, and how sensitive is the valuation to a one-year delay in defence order execution?
- ?ROE of 31.33% is the highest in the peer group despite the elevated D/E; to what extent is ROE amplified by financial leverage rather than operating efficiency, and what does ROCE (return on capital employed) show in comparison?
- ?The 5-year earnings CAGR of 70% has been supported by rapid order inflows; how much of the order book is concentrated in a small number of government/defence customers, and what does contract renewal or procurement cycle risk look like?
Peer comparison: Chemicals
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SOLARINDS | Solar Industries India Ltd.You're viewing | 97.8 | +31.3% | 61 |
| Industry avg | across 5 peers | 38.2 | +14.2% | 41 |
| PIDILITIND | Pidilite Industries Ltd. | 60.7 | +23.5% | 66 |
| UPL | UPL Ltd. | 28.9 | +5.6% | 44 |
| SRF | SRF Ltd. | 43.5 | +13.8% | 41 |
| COROMANDEL | Coromandel International Ltd. | 27.0 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 31.0 | +12.3% | 23 |
Technical state
Current price
₹18,203.00
SMA 50
₹15,416.36
SMA 200
₹14,068.31
RSI (14)
68.2 (neutral)
From 52w high
-3.6%
1Y return
+14.6%
3M return
+32.3%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 23.271 is exceptionally high for a non-bank Chemicals/explosives manufacturer, and the debt trend is flagged as rising. No sector peer reported approaches this level; Chemicals sector medians typically sit below 1.0, making this a structural outlier requiring explanation.
- mediumTrailing PE of 97.8x is the highest among the 6 tracked sector peers (peer range: 26.9x–60.7x). Forward PE compresses to 54.6x, implying the current price reflects material earnings acceleration ahead. FCF has been positive in only 3 of the tracked years, providing limited margin of safety if growth disappoints.
- mediumRSI stands at 68.19 and the stock is 32.34% higher over 3 months, trading within 3.56% of its 52-week high at ₹18,203. The nearest support level identified is ₹12,852 — approximately 29% below current price — indicating a wide gap to any established floor if price retraces.
- low1-year price-change data is unavailable for all 5 sector peers (PIDILITIND, COROMANDEL, PIIND, SRF, UPL), making it impossible to benchmark whether SOLARINDS's 14.62% 12-month gain represents sector-wide movement or stock-specific performance.
Cross-section contradictions
- ROE of 31.33% ranks first among 6 sector peers and FCF has been positive in 3 of tracked years — indicators of capital efficiency — yet D/E of 23.271 is rising, suggesting operations are increasingly funded by debt despite strong reported internal returns.
- News sentiment is uniformly constructive (6 positive, 0 negative across 8 articles), recent headlines cite a ₹1,076 crore export defence order and major broker earnings upgrades, yet the trailing PE of 97.8x already embeds a steep premium, and the degree to which these catalysts are reflected in price cannot be determined from sentiment data alone.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days