Solar Industries India, a prominent player in the chemicals sector, has recently been downgraded to a ‘Hold’ rating by MarketsMOJO as of January 8, 2025. The company reported positive financial performance for the second quarter of FY24-25, showcasing a robust operating profit growth rate of 22.72% annually. Solar Industries boasts a strong long-term fundamental strength, highlighted by an average Return on Capital Employed (ROCE) of 25.08% and a low Debt to EBITDA ratio of 0.92 times, indicating a solid ability to service its debt.
In September 2024, the company achieved its highest operating cash flow at Rs 1,406.01 crore and recorded net sales of Rs 1,715.83 crore. Despite these positive indicators, the technical trend for the stock has turned sideways, reflecting no clear price momentum and generating a slight decline of -0.31% since the downgrade.
With a market capitalization of Rs 87,413 crore, Solar Industries India is the largest company in its sector, accounting for 15.03% of the entire industry. The stock has consistently outperformed the BSE 500 over the past three years, generating a return of 45.27% in the last year alone.
