Synopsis:
Solar Industries India Ltd has generated 1,194.82% returns in just five years, significantly outperforming market benchmarks. Over the past five years, the company has delivered phenomenal returns, becoming one of the most successful large-cap multibaggers.
This company is a leading manufacturer of industrial explosives and speciality chemicals, has emerged as a standout performer in the Indian stock market and is now in the spotlight after the stock has delivered multi-bagger returns of 1,194.82 percent to the shareholders in 5 years.
With market capitalization of Rs. 1,27,608 cr, the shares of Solar Industries India Ltd are closed at Rs. 14,110 per share, from its previous close of Rs. 14,239 per share.
Stock’s return
The stock has delivered a 1-year return of 24.99% and an impressive 5-year return of 1,194.82%. The share price, which was Rs. 1,090.50 on October 9th, which is five years ago, is now trading at Rs. 14,120. An investment of Rs. 1 lakh in the company five years ago would have grown to Rs. 12.94 lakh.
About the company
Solar Industries India Ltd is a leading manufacturer of industrial explosives and specialty chemicals in India, catering to sectors such as mining, infrastructure, and defense. Known for its focus on innovation, quality, and safety, the company has consistently expanded its domestic and international presence. With strong operational performance and strategic growth initiatives, Solar Industries has become a prominent player in the explosives and chemicals industry.
Order Book and Recent Contracts
Solar Industries India Limited has a robust order book exceeding Rs. 17,000 crore, predominantly driven by defence sector contracts, which contribute nearly 90% of the total order book.
Recent significant orders include Rs. 483 crore from South Eastern Coalfields Limited (SECL) for bulk explosives and Rs. 402 crore from Coal India for cartridge explosives, both supporting steady revenue visibility over the next few years.
The company secured a historic Rs. 6,084 crore contract for Pinaka rocket systems, marking India’s largest private artillery deal, highlighting its strong defense sector positioning.
Expansion Plans and Manufacturing Footprint
Solar Industries is actively expanding its footprint in defense and aerospace, demonstrating ambitions that go beyond traditional ammunition manufacturing. The company has partnered with ISRO and invested in Skyroot Aerospace to advance space propulsion systems, highlighting its interest in space technologies.
In line with India’s goal to become a global leader in ammunition, Solar Industries is also venturing into 155 mm artillery shells.
To strengthen its presence in cutting-edge defense segments, the company is developing Bhargavastra CUAS, an anti-drone system designed to counter modern threats like drone warfare.
The company has also signed a Rs. 12,700 crore MoU with the Maharashtra government to establish a mega defense and aerospace facility, positioning itself in emerging areas such as drones, UAVs, counter-drone systems, and advanced explosives.
Financial Performance and Growth
Financially, Solar Industries has demonstrated strong upward momentum. For FY25, revenue stood at Rs. 7,540 crore with a 24% growth rate, and net profit surged 47% to Rs. 1,288 crore. In Q1 FY26, the company reported revenue of Rs. 2,154 crore, a 28% year-on-year increase, and an impressive net profit growth of 17% to Rs. 353 crore.
The company’s sales saw a slight decline from Rs. 2,167 crore in Q4 FY25 to Rs. 2,154 crore in Q1 FY26. Operating profit also dipped marginally from Rs. 537 crore to Rs. 535 crore, while net profit increased from Rs. 346 crore to Rs. 353 crore during the same period.
The company has demonstrated strong profitability, with a Return on Capital Employed (ROCE) of 38.1% and a solid Return on Equity (ROE) of 32.6%. Over the past five years, it has achieved an impressive 36.2% CAGR in profit growth.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
