Defence Company Secures International Order Worth Rs 580 Crore – Keep This Stock on Your Radar for Monday

The company’s shares have delivered an impressive return of over 65 per cent in the past 1 year.

This Mid-Cap company is one of the largest domestic manufacturers of bulk and cartridge explosives, detonators, detonating cords, and components, which are used in mining, infrastructure, and construction industries. It specializes in high-energy explosives, delivery systems, ammunition filling, and pyrotechnic fuses for the defence sector.

Solar Industries has announced that it has secured export orders from an international client name that has not been disclosed by the company, valued at Rs 580 crore for the supply of defence products, with deliveries scheduled over the next five years.

The company was the first private player to establish a facility to manufacture RDX, HMX, and TNT, which were used by the defence industry to produce propellants, warheads, and rockets. The company's defence portfolio also included the manufacturing of warheads and grenades, along with rocket assembling.

As per the Quarterly Results, in Q1 FY25, Solar Industries recorded a revenue of Rs 1695 crore representing a growth of 1 per cent YoY from Rs 1682 crore. The EBITDA for Q4 FY24 stood at Rs 474 crore representing a gain of 43 per cent YoY compared to Rs 331 crore. The company reported a net profit of Rs 301 crore compared to a profit of Rs 202 crore representing a growth of 49 per cent. Looking at the annual performance, the company generated a revenue of Rs 6070 crore in FY24, compared to Rs 6918 crore in FY23. The operating profit for FY24 was Rs 1482 crore with a net profit of Rs 875 crore.

On Friday, the shares closed at Rs 10,144.70 per share. The company's current market capitalization stands at Rs 91,799.45 crore, and the stock has generated an impressive return of over 65 per cent in the past 1 year.

According to the shareholding pattern of Solar Industries promoters own a 73.15 per cent stake, while public investors hold 6.64 per cent. FIIs hold a 7.53 per cent stake and DIIs own a 12.68 per cent in Q1 FY25.

Disclaimer: The article is for informational purposes only and not investment advice.