Rs 12,700 Crore Investment: Aerospace & Defence Company Signs MoU with Government of Maharashtra for Anchor Mega Defence and Aerospace Project
The stock is up over 50 per cent from its 52-week low of Rs 6,275 per share and gave multibagger returns of 730 per cent in 5 years.
Solar Industries India Limited announced that its wholly owned subsidiary, Economic Explosives Limited (EEL), has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra. This significant agreement, signed in Davos, Switzerland on January 22, 2025, outlines the establishment of a major Anchor Mega Defence and Aerospace Project in Nagpur, India. This ambitious project, with an estimated investment of Rs 12,700 crore will focus on expanding the production of existing defence products such as drones, UAVs, counter-drone systems, and energetic materials.
The proposed project will also see the introduction of new product lines, including the development and manufacturing of Military Transport Aircraft. The Government of Maharashtra has committed to actively supporting EEL in this endeavour. This support will encompass facilitating the necessary permissions, registrations, approvals, clearances, and fiscal incentives from relevant state departments, all under the existing policies and regulations of the Government of Maharashtra. This collaboration signifies a significant step forward for India's defence and aerospace capabilities.
Earlier, the company secured significant export orders valued at Rs 2039 crore from international clients. These orders pertain to the supply of defence products and are slated for delivery over four years. The specific terms and conditions of the contracts are primarily focused on the timely delivery of high-quality defence products to international clients. This substantial international order underscores SIL's position as a reliable supplier of defence equipment and its ability to meet the evolving needs of global defence forces.
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Solar Industries Ltd (SIL) is one of the world’s leading manufacturers of bulk explosives, packaged explosives and initiating systems, which find applications in the mining, infrastructure and construction industries. SIL also ventured into the defence segment in 2010 and diversified into manufacturing propellants for missiles and rockets, warheads and warhead explosives.
The company has a market cap of over Rs 86,000 crore and has delivered good profit growth of 28.1 per cent CAGR over the last 5 years. As of September 30, 2024, the company’s order book stands at Rs 5,757 crore.
The shares of the company have an ROE of 33.4 per cent and an ROCE of 34.7 per cent. The stock is up over 50 per cent from its 52-week low of Rs 6,275 per share and gave multibagger returns of 730 per cent in 5 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.