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    Buy Solar Industries India, target price Rs 4760: ICICI Securities

    Synopsis

    Solar Industries India, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 36400.53 Crore) operating in Chemicals sector.

    Solar Industries IndiaAgencies
    Promoters held 73.15 per cent stake in the company as of 30-Jun-2022, while FIIs owned 6.63 per cent, DIIs 14.73 per cent.
    ICICI Securities has buy call on Solar Industries India with a target price of Rs 4760. The current market price of Solar Industries India is Rs 4023.9.

    Solar Industries India, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 36400.53 Crore) operating in Chemicals sector.

    Solar Industries India key Products/Revenue Segments include Explosives (Industrial) and Other Operating Revenue for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1570.96 Crore, down -3.28 % from last quarter Total Income of Rs 1624.22 Crore and up 96.69 % from last year same quarter Total Income of Rs 798.68 Crore. Company has reported net profit after tax of Rs 188.69 Crore in latest quarter.

    The company’s top management includes Mr.Satyanarayan Nuwal, Mr.Manish Satyanarayan Nuwal, Mr.Suresh Menon, Mr.Milind Deshmukh, Mr.Ajai Nigam, Mrs.Sujitha Karnad, Mr.Amrendra Verma, Mr.Sanjay Sinha. Company has Akshay Rathi & Associates as its auditors. As on 30-06-2022, the company has a total of 9 Crore shares outstanding.

    Investment Rationale
    Overall, the brokerage sees Solar on a high-growth trajectory on the back of volume uptick in the commercial explosives business, and increasing share of the high-margin defence explosives business. Factoring-in theimpressive growth in defence orderbook, healthy margins and EPS potential for47% CAGR (FY22-FY24E), the brokerage values Solar at 45x (earlier 40x) EPS – correspondingto 2 deviations above 10yr mean.

    This results in a target price of Rs 4,760 (earlier:Rs 4,225). The brokerage upgraded the stock to buy from the earlier hold call.

    Promoter/FII Holdings
    Promoters held 73.15 per cent stake in the company as of 30-Jun-2022, while FIIs owned 6.63 per cent, DIIs 14.73 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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