Shares of this large-cap company jumped around 4 percent in Tuesday’s trading session after receiving an export order worth Rs. 455 crores. The shares have delivered a multibagger return of 110 percent to its shareholders in one year.
With a market capitalization of Rs. 71,755 crores, the shares of Solar Industries India Ltd started Tuesday’s trading session on a higher note at Rs. 7,790.60 compared to its previous close of Rs. 7,731.40. During the trading session, the shares hit a high of Rs. 8,010, gaining around 4 percent and are currently trading at Rs. 7,940 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had received export orders worth Rs. 455 Cr for the supply of products over the next 2 years for use in defence products.
Looking at the company’s financial statements, the revenue increased by 6 percent from Rs. 1,347 crores during the September quarter to Rs. 1,429 crores during the December quarter. In addition, the net profits increased by around 7 percent from Rs. 209 crores to Rs. 222 crores during the same period.
The company gets revenue from multiple sources, primarily it gets 44 percent of the revenue from exports and overseas, 18 percent of revenue inflows from housing and infrastructure and the remaining 38 percent of revenue is generated from Coal India, Non-CIL and Institutions, Defence and others.
Furthermore, the company has planned a capex of Rs. 470 crores. This strategic investment in CAPEX aims to support the company’s growth targets and enhance its operational capabilities for future projects and expansions. The current order book for defence products stands at more than Rs 2,200 crores.
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 26.07 percent during FY21-22 to 35.86 percent in FY22-23, and, the return on capital employed (RoCE) zoomed from 25.56 percent to 36.34 percent during the same timeframe. Moreover, the net profit margin increased marginally from 11.43 percent during FY21-22 to 11.72 percent during FY22-23.
Headquartered in Maharashtra, Solar Industries India was incorporated in 1995. The company 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.
Written By Vaibhav Patil
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