Accumulate Solar Industries India; target of Rs 3330: KR Choksey

KR Choksey recommended accumulate rating on Solar Industries India with a target price of Rs 3330 in its research report date May 05, 2022.

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May 05, 2022 / 21:31 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Solar Industries India

For the quarter Q4FY22, the revenue from operations grew by 66.4% YoY/29.4% QoQ to INR 13,169 mn. For full year FY22,the revenues grew by 56.9% to 39,476 mn. The EBITDA grew by 41.1% YoY/19.7% QoQ to INR 5,006 mn. The margins grew by 247 bps QoQ and de-grew by 83 bps YoY to 20.0% in Q4FY22. For FY22, the EBITDA grew by 45.2% and margins de-grew by 153 bps to 18.9% The PAT grew by 83.9% YoY/66.4% QoQ to INR 1,748 mn. The margins grew by 272 bps QoQ and 125 bps YoY to 12.7% in Q4FY22. For FY22, the Net Profit grew by 58.1% to INR 4,555 mn and margins grew by 19 bps to 11.2%. The company recommended a dividend of INR 7.5 per share i.e. 375% on the face value of INR 2 per share. The company maintains a healthy order book of INR 29,820 mn.

Outlook

At CMP of INR 2,997 ,Solar Industries is trading at a P/E of 46.0x/38.0x FY23E/24E EPS. We are applying a P/E multiple of 42.5x (earlier 40x) to the FY24E EPS of 78.3/share, implying a target price of 3,330 per share, yielding an upside potential of 11.1%; hence we recommend “ACCUMULATE” rating on the stock.

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