On Wednesday, the shares of an Industrial Explosive manufacturer with a market capitalization of Rs 44,102 crores were trading at Rs 4,868 per share, down 0.5 percent from the previous close price.
Solar Industries India Ltd is a global leader in the production of bulk explosives, packaged explosives, and initiating systems, which are used in the mining, infrastructure, and construction sectors, as well as propellants for missiles and rockets, warheads, and warhead explosives.
Solar Industries has a 25 percent market share in the Indian industrial explosives business and a licensed explosives capacity of over 3,00,000 MT/year.
Solar Industries profit after tax and operating revenue climbed at an outstanding CAGR of 30.8 percent and 29.5 percent over the last five fiscal years, respectively, to Rs 811 crore and Rs 6,923 crore in FY23.
In FY 22-23, The company reported its margin with an operating margin of 17.22 percent and a net profit margin of 11.72 percent. Profitability ratios have improved, with a return on equity at 29 percent and a return on capital employed at 35.02 percent.
The company’s revenue climbed by 4 percent year on year, rising from Rs 1,615 crore in Q1FY23 to Rs 1,682 crore in Q1FY24. During the same time period, net profit increased by 10 percent from Rs 182 crore to Rs 201 crore. The company has a debt-to-equity ratio of 0.45.
As per the shareholding pattern, The promoters of Solar Industries India hold 73.15 percent of the company, Foreign institutional investors hold 5.79 percent while Domestic institutional investors hold a 15.01 percent stake.
Solar Industries shares have increased by 25 percent in the previous six months and by 46 percent in the last year.
Solar Industries’ order book was at 2,678 crores as of Q1 FY24. The company receives 76 percent of its income from Indian clients, with the remaining 24 percent coming from abroad customers. Furthermore, the company spent Rs 471 crore, or more than half of its FY23 earnings, on capital expenditure (CAPEX) to boost capacity in FY23.
Written By Omkar Chitnis
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