This Defence company, which offers manufacturers of bulk and cartridge explosives, detonating cords, detonators, and components is in focus after receiving the export order worth Rs. 580 crores of Defence Products to an International Entity
Price Movement
In Monday’s trading session, Solar Industries India Limited stock was up by 2 percent in the day’s trade after receiving the export order worth Rs. 580 crores of Defence Products to an International Entity. The stock has delivered a return of around 64 percent in the past year outperforming the Nifty Index in the same period. The stock reiterated from the day’s high of Rs. 10,355 and was trading at Rs. 10,256 which is a 1.10 percent increase from the previous closing price of Rs. 10,144.70 per share.
What happened
The stock is in focus after the company has received export orders worth Rs. 580 Crores for the Supply of Defence Products and the expected time to be delivered is over 5 years. This order is received from an International Entity.
Financial Performance
Their Q1FY25 results show revenue from operations of Rs. 1,695 crore which increased by 0.77 percent year on year, from Rs. 1,682 crore in Q1FY24 and a 5.2 percent increase from Rs. 1,611 crore in Q4FY24. Their net profit increased by 49 percent year on year, from Rs. 202 crores in Q1FY24 to Rs. 301 crores in Q1FY25. Quarterly, the profits were up 23.86 percent from Rs. 243 crore.
The debt-to-equity ratio was 0.39 times declined from 0.46 times in FY23. The RoE in FY24 stood at 29.59 percent declined from 35.86 percent a year ago. However, the RoCE stood at 30.79 percent which has decreased from 36.06 percent in FY23.
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Revenue Segment
According to the company’s quarterly June 2024 report, they report their revenue under Explosives and its accessories.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 73.15 percent stake in Solar Industries India, Foreign Institutional Investors (FII) holding around 7.53 percent, Domestic Institutional investors (DII) standing at 12.68 percent, and public holdings standing at 6.64 percent.
About the company
Solar Industries India Limited is an integrated global explosives manufacturer based in Nagpur, India. The company was founded in 1995, they specialize in producing a range of detonators, industrial explosives, and defence products.
Their business model focuses on serving diverse sectors such as construction, mining, and defence by providing high-quality explosives and related services. Solar Industries aims to expand its market presence both domestically and internationally by leveraging advanced technology to improve product offerings and operational efficiency. The company commands a significant share in the explosives market. As of Q1FY25, the company’s order book stood at Rs. 4,754 crores comprising orders from Coal India, SCCL, and Defence.
Written by Santhosh S
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