Shares of this defence stock under the ‘large-cap’ category fell up to 10 percent in Monday’s trading session after the company informed about an explosion that took place in its factory that is based in Nagpur, Maharashtra.
With a market capitalization of Rs 61,316.06 crores, the stocks of Solar Industries India Limited started their trading session on Monday at Rs 6,210.05 and currently trade at Rs 6,776. The scrip witnessed an intra-day low of Rs 6,155.35 indicating a deep fall of approximately 10 percent compared to the previous close of Rs 6,878.95 apiece.
Such sharp movements in the stock prices today are observed after the company, in a recent filing with the Bombay Stock Exchange (BSE), intimated about an explosion incident in a Pallet Casting House situated in Nagpur, Maharashtra on December 17th, 2023.
The incident resulted in the loss of 9 workmen’s lives working in the plant. The company’s filing mentioned that the incident is being investigated and corrective and preventive actions will be implemented.
During the recent financial quarters, the company’s basic business parameters such as operating revenues and net profits showed opposing movements.
The former, on one end, reduced from Rs 1,682.21 crores during Q1FY23-24 to Rs 1,347.46 crores during Q2FY23-24, and, the latter, on the other end, increased marginally from Rs 201.69 crores to Rs 209.77 crores due to effective operating cost management.
As per the recent presentations of the company, the order book status stands at Rs 3,912 crores. During FY22-23, the capital expenditure (capex) of the company was Rs 471 crores, and, in H1FY24 till now, has done a capex of Rs 238 crores.
Solar Industries India Limited is engaged in manufacturing and selling a wide range of explosives and defence products. The company primarily sells bulk explosives and detonation systems to the infrastructure, mining, and construction industries. The product portfolio includes pyros, bombs, warheads, high-energy explosives, etc.
Written by Amit Madnani
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