Solar Industries Stock Surges on ₹2,150 Cr Export Order Win from International Clients
Introduction
Shares of Solar Industries India Limited, India’s largest manufacturer of industrial explosives, gained momentum in Friday’s trading session after the company secured a massive export order worth ₹2,150 crores from international clients. The order, which includes the supply of defence products, is set to be executed over a period of six years, reinforcing Solar Industries’ strong global presence and robust growth trajectory.
Stock Performance and Market Reaction
During Friday’s session, Solar Industries’ stock was trading in the green, reflecting investor optimism following the announcement. At 3:28 p.m., the stock was priced at ₹8,787.35 on the BSE, up nearly 1% from its previous closing price of ₹8,721.65.
Over the past year, the stock has delivered a solid 29% return, showcasing its long-term strength. However, it has faced some recent headwinds, posting a 14% decline in the last month, potentially due to broader market conditions and profit booking by investors.
Major Export Order & Business Expansion
According to the latest regulatory filings, Solar Industries and its subsidiary have bagged an export order worth ₹2,150 crores from international clients for the supply of advanced defence products. This deal strengthens the company’s footprint in the global defence sector and aligns with India’s ambition to become a significant defence exporter.
Recent Defence Orders Strengthening the Portfolio
This recent order adds to Solar Industries’ growing list of prestigious contracts. Earlier, on February 6, 2025, the Ministry of Defence signed a contract with Economic Explosive Limited (EEL), a wholly owned subsidiary of Solar Industries. The contract is valued at ₹6,084 crores and involves supplying:
- Area Denial Munition (ADM) Type-1 (DPICM)
- High Explosive Pre Fragmented (HEPF) Mk-1 (Enhanced) Rockets for the PINAKA Multiple Launcher Rocket System (MLRS)
The contract will be executed over 8 to 15 years, with 86% of deliveries expected within the next decade. This deal is touted as the biggest contract in Solar Group’s history, further solidifying its position as a key defence manufacturer in India.
Financial Performance & Order Book Growth
Solar Industries India Limited has demonstrated strong financial performance, supported by robust order flows and increasing demand for its defence and industrial explosives.
- Revenue Growth: The company reported a 38% YoY increase in revenue, rising from ₹1,429 crores (Q3 FY24) to ₹1,973 crores (Q3 FY25).
- Net Profit Surge: Net profit witnessed an impressive 52% YoY growth, climbing from ₹222 crores to ₹338 crores during the same period.
- Record Order Book: As of Q3 FY25, the company achieved its highest-ever order book of ₹7,122 crores, reinforcing its strong business pipeline and future revenue visibility.
About Solar Industries India Limited
Solar Industries India Limited specializes in manufacturing industrial explosives, initiating devices, and high-energy materials for defence applications. The company plays a pivotal role in India’s growing defence and mining sectors and has expanded its global footprint through strategic partnerships and large export orders.
Financial Ratios & Key Metrics
Below is a snapshot of Solar Industries’ key financial indicators:
| Metric | Value |
|---|---|
| Market Cap | ₹78,839 Cr. |
| Current Price | ₹8,711 |
| 52-Week High / Low | ₹13,300 / 6,740 |
| Stock P/E | 70.2 |
| Book Value | ₹419 |
| Dividend Yield | 0.10% |
| ROCE (Return on Capital Employed) | 32.5% |
| ROE (Return on Equity) | 30.9% |
| Face Value | ₹2.00 |
| Promoter Holding | 73.1% |
| Debt to Equity | 0.32 |
| Price to Earnings Ratio | 70.2 |
| Pledged Shares | 0.55% |
| QoQ Profit Growth | 11.1% |
| Quarterly Profit Variation | 54.9% |
| Industry P/E | 70.5 |
| Graham Number | ₹1,082 |
| Intrinsic Value | ₹1,788 |
| RSI (Relative Strength Index) | 39.6 |
| EPS (Earnings Per Share) | ₹124 |
| Number of Equity Shares | 9.05 Cr. |
| PEG Ratio | 2.49 |
| 200-Day Moving Average | ₹9,585 |
| Free Cash Flow (3 Years) | ₹1,058 Cr. |
| Free Cash Flow (Latest Year) | ₹858 Cr. |
| Total Debt | ₹1,198 Cr. |
Future Outlook
Solar Industries is well-positioned for strong future growth, driven by:
- Robust Order Book: The ₹7,122 crore order pipeline ensures stable revenue in the coming years.
- Expanding Defence Segment: Recent defence orders, both domestic and international, highlight its rising prominence in the sector.
- Global Expansion: The latest ₹2,150 crore export order strengthens its international presence.
- Financial Stability: Strong ROCE (32.5%) and ROE (30.9%) indicate efficient capital utilization and profitability.
Conclusion
With a solid track record of securing large-scale contracts, Solar Industries India Limited continues to be a key player in the defence and industrial explosives sector. The latest ₹2,150 crore export order further cements its reputation as a leader in defence manufacturing. Despite short-term volatility, the company’s long-term growth prospects remain strong, making it an attractive investment option for investors looking at the defence sector.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.