Multibagger Defence Company Reports Stellar Results: Highest-Ever Quarterly Revenue from Defence Segment & PAT Surged by 49 per cent in Q1 FY25!

The company’s shares have delivered a multibagger return of over 160 per cent in the past 1 year.

This aerospace and defence company has announced stellar results today. It 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. The company specializes in high-energy explosives, delivery systems, ammunition filling, and pyrotechnic fuses for the defence sector.

Solar Industries 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 defense portfolio also included the manufacturing of warheads and grenades, along with rocket assembling.

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The company has reported its highest-ever quarterly EBITDA and PAT margins, reaching approximately 28 per cent and 18 per cent, respectively. Additionally, the company achieved its highest-ever defence revenue for the quarter, exceeding Rs 200 crore. Volume growth for the quarter was impressive, showing a 16 per cent year-over-year increase.

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.

Today the shares closed at Rs 10207 per share. The company's current market capitalization stands at Rs 92363 crore, and the stock has generated an impressive multibagger return of over 160 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 6.54 per cent. FIIs hold a 7.56 per cent stake and DIIs own a 12.74 per cent in Q1 FY25.

Investors must keep this Mid-Cap stock on their radar.

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