Synopsis: Large cap stock gained attention after it received an order worth Rs. 1,400 crore, for supply of Defence stocks.
The shares of one of the largest domestic manufacturers of bulk and cartridge explosives, detonators, detonating cords and components, which find applications in the mining, infrastructure, defence and other industries were in focus after receiving work orders worth Rs. 1,400 Crores.
With a market capitalization of Rs.1,24,840.98 Crore, Solar Industries India Ltd’s share has opened at a price of Rs. 13,918.40 per share, 21 percent away from its 52 week high of Rs. 17,805 per share. The share has given a 42.38 percent return over a period of one year, way better than the market’s average return.
What happened:
The company Solar Industries India Limited and its subsidiary have received export orders worth Rs. 1,400 Crores for the Supply of Defence Products, to be delivered over a period of 4 years. The order is from an international client, with no related party transactions.
The company’s order book stands around Rs.17,100 crore, where Defence segment orders are of Rs. 15,550 crore plus and that of CIL & SCCL at Rs. 1,600 crore plus. With international customers contributing 38 percent to sales, followed by defense, Non- CIL & institution, Housing & Infra’, CIL and others contributing the rest of sales.
Revenue from operations for Q2 FY26 is Rs. 2,082 crore, a growth of 21 percent from the corresponding previous year quarter of Rs. 1,716 crore. EBIDT grew by 24 percent to Rs. 552 crore in Q2 FY26 from Rs. 445 crore in Q2 FY25. Accompanied by Net profit growth 21 percent to Rs 361 crore in Q2 FY26 from Rs. 304 crore in Q2 FY25.
The company’s EPS grew by 21 percent YoY in Q2 FY26, with ROCE of 38.1 percent and ROE of 32.6 percent, indicating an overall capital efficiency and right allocation of funds.
About the company
Solar Industries is one of the largest domestic manufacturers of bulk and cartridge explosives, detonators, detonating cords and components which find applications in the mining, infrastructure and construction industries. The company manufactures high-energy explosives, delivery systems, ammunition filling and pyros fuses for the defence sector.
With the company’s Product portfolio of Industrial Explosives: Bulk Explosives,
Packaged Explosives & Initiating Systems. Defence Products: High energy material, composite propellant, ammunation, Drone & UAVs, Pyros and ignitors, propellant for space applications.
Written by Gourav Pratap Singh
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