Time period given by analyst is six months when Solar Industries India Ltd. price can reach defined target.
Solar Industries India Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 17814.32 Crore) operating in Chemicals sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 826.03 Crore, up 4.06 % from last quarter Total Income of Rs 793.83 Crore and up 66.87 % from last year same quarter Total Income of Rs 495.02 Crore. Company reported net profit after tax of Rs 100.85 Crore in latest quarter.
Investment Rationale
The brokerage believes, within the Industrial explosives space, SIL is a unique company which has strong pricing power and has been exhibiting consistent better than industry performance for more than 2 decades. Going forward, the brokerage expects SIL’s revenue, EBITDA & PAT to report a growth of CAGR 23/24.5 and 31% respectively over FY21-23E. Segment-wise the brokerage expects Defense revenues to reach Rs. 500Cr by FY23 up 4x over FY21 while exports and overseas are expected to grow by 20.7% CAGR for next 2 years. Apart from these, domestic business like CIL/ institutional and trade channel are expected to grow at a CAGR of 12.5/13.9 and 13.5% respectively over FY21-23E.
Promoter/FII Holdings
Promoters held 73.2 per cent stake in the company as of June 30, 2020, while FIIs held 4.4 per cent, DIIs 17.6 per cent and public and others 4.8 per cent.
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