Solar Industries India Ltd. share price target

Solar Industries India Ltd. (SIIL) is the dominant player

Solar Industries (SIL) reported strong Q2FY18 numbers wherein revenues came in at | 408.4 crore, up 21.6% YoY (our estimate: | 365.2 crore). The company witnessed strong revenue growth due to strong volume growth of 18.3% and 26.2% in bulk and cartridge segment, respectively. Bulk & cartridge segment contributed 60-65% to the topline. However, realisations in both segments, bulk and cartridge witnessed a decline of 8% & 2%, respectively (after adjusting for excise duty and other taxes). The overseas segment also...

Sector: Chemicals /Small Cap | Earnings Update 2QFY18 Background: Established in 1984, Solar Industries is the largest manufacturer of industrial explosives and explosive initiating systems in India. With a licensed explosives capacity of over 290,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 19 countries in Africa and South East Asia. Economic Explosives, a 100% subsidiary, manufactures detonators. Solar has manufacturing facilities spread across 25 locations and eight states in India. In recent years expanded its manufacturing base to Nigeria, Zambia, South Africa and Turkey. SIIL has also interests in the coal...

Operational performance meaningfully ahead of estimates: Consol. revenue increased 30% YoY to INR4.1b (est. of INR3.6b) in 2QFY18. EBIDTA grew 30% YoY to INR0.9b (est. of INR595m), with the margin stable YoY at 22.0%, supported by strong growth in the overseas business. Adj. net profit rose 23% YoY to INR483m (est. of INR304m). aided by strong growth in overseas segment: Consol. revenue was driven by strong growth in the overseas segment (+85% YoY). On the domestic front, housing and infrastructure segment sales grew 45% YoY. However, the quarter...

Background Established in 1984, Solar Industries is the largest manufacturer of industrial explosives and explosive initiating systems in India. With a licensed explosives capacity of over 290,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 19 countries in Africa and South East Asia. Economic Explosives, a 100% subsidiary, manufactures detonators. Solar has manufacturing facilities spread across 16 locations and eight states in India. In recent years expanded its manufacturing base to Nigeria, Zambia and Turkey. SIIL has also interests in the coal mines (in Chattisgarh) through two JVs. Solar is...

Solar Industries (SIL) reported weak Q4FY17 numbers as the company witnessed a sharp decline in cartridge' realisations (down 13.5% YoY) for the quarter. Overseas segment also reported muted growth of 8.8% YoY (| 87.8 core in Q4FY17 vs. | 80.7 crore in Q4FY16). We estimate overseas revenue of | 103 crore. On the positive side, the company reported volume growth of ~14% and ~13% in bulk and cartridge segment, respectively. The topline was below our estimates. EBITDA and bottomline numbers were in line...

Background Established in 1984, Solar Industries is the largest manufacturer of industrial explosives and explosive initiating systems in India. With a licensed explosives capacity of over 290,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 19 countries in Africa and South East Asia. Economic Explosives, a 100% subsidiary, manufactures detonators. Solar has manufacturing facilities spread across 16 locations and eight states in India. In recent years expanded its manufacturing base to Nigeria, Zambia and Turkey. SIIL has also interests in the coal mines (in Chattisgarh) through two JVs. Solar is...

Background Established in 1984, Solar Industries is the largest manufacturer of industrial explosives and explosive initiating systems in India. With a licensed explosives capacity of over 290,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 19 countries in Africa and South East Asia. Economic Explosives, a 100% subsidiary, manufactures detonators. Solar has manufacturing facilities spread across 16 locations and eight states in India. In recent years expanded its manufacturing base to Nigeria, Zambia and Turkey. SIIL has also interests in the coal mines (in Chattisgarh) through two JVs. Solar is...

Background Established in 1984, Solar Industries is the largest manufacturer of industrial explosives and explosive initiating systems in India. With a licensed explosives capacity of over 290,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 19 countries in Africa and South East Asia. Economic Explosives, a 100% subsidiary, manufactures detonators. Solar has manufacturing facilities spread across 16 locations and eight states in India. In recent years expanded its manufacturing base to Nigeria, Zambia and Turkey. SIIL has also interests in the coal mines (in Chattisgarh) through two JVs. Solar is...

Solar Industries (SIL) reported decent Q3FY17 numbers due to a strong performance in domestic markets. The topline and bottomline numbers of the company came in line with our estimates whereas...