chemicals
Solar Industries
SOLARINDS · Nifty 50
₹17,457
Price 2026-06-17
At a Glance
Fundamental
65/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Solar Industries scores 65/100 on fundamentals (adequate). Solar Industries: BROAD EXPANSION regime.
Fundamental Score: 65/100 · ADEQUATE · 1 signals detected
DuPont Analysis
ROE 26.7% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 26.72% is strong efficiency-driven and stable. Net margin of 17.1% × asset turnover of 0.9x × leverage of 1.7x.
What This Means
Net margin of 17.1% means the company keeps ₹17.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.90x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
50.7%
Operating
25.4%
Net
17.1%
Gross margin 50.7% → operating margin 25.4% → net margin 17.1%. Margins are stable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 18.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.7x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin negative at -11.4% — spending more than earning. Check capex cycle.
Peer Comparison
Solar Industries is compared against 10 peers in the chemicals sector.
Key Watchpoints
Breaks above ₹18330 (+5%)
Trend reversal confirmation
Breaks below ₹16584 (-5%)
Further downside risk
Chemicals sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is consuming significant cash. Operational efficiency declining.
High revenue multiple. Market pricing in significant growth or margins expansion.
Collection cycle changing. Collection improving — positive for cash flow.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes