This explosive manufacturing company doubled shareholders' wealth in a year!

This explosive manufacturing company doubled shareholders' wealth in a year!

by 5paisa Research Team Last Updated: 2022-03-28T15:22:14+05:30

An investment of Rs 1 lakh in this stock last year would have turned to Rs 2.04 lakh today.

Solar Industries Ltd, an S&P BSE 500 company has turned into a multibagger by giving investors exceptional returns of 104.68% in the last one year. During this period, the company’s share prices rallied from Rs 1288.75 on 26 March 2021 to Rs 2637.80 on 25 March 2022. An investment of Rs 1 lakh in this stock last year would have turned to Rs 2.04 lakh today.

Solar Industries Ltd is an integrated global player in explosives. The company operates in two segments- industrial explosives and defence.

In the industrial explosives segment, the company manufactures packaged explosives, bulk explosives and initiating systems. On the other hand, in the defence segment, it manufactures UAS & drones, ammunition, military explosives, bombs & warheads, integration of rockets, counter drone system (CDS), etc.

The company’s total domestic order book stands at Rs 2733 crore. During the quarter Q3FY22, exports and overseas customers accounted for the largest percentage of sales, which stood at 37%. On the capex front, as of Q3FY22, the company has incurred Rs 214 crore.

During the last 1 year, the company witnessed a 21% rise in the number of explosives sold and an 84% increase in the value of explosives sold.

In Q3FY22, on a consolidated basis, the company’s net revenue went up by 57.60% YoY to Rs 1017.87 crore. The PBIDT (ex OI) came in at Rs 177.97 crore, which was an increase of 34.58% YoY. However, owing to a steep rise in the cost of materials consumed, the corresponding margin contracted by 300 bps YoY to 17.48%. Similarly, the net profit surged by 29% YoY to Rs 105.06 crore, whereas the corresponding margin contracted by 229 bps YoY to 10.32% in Q3FY22.

At 3.11 pm, the shares of Solar Industries Ltd were trading at Rs 2755.50, an increase of 4.46% from the previous week’s closing price of Rs 2637.80 on BSE.


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