Rs 7,122 Crore Order Book: Defence Company Bags New Order Worth Rs 239 Crore From Ministry of Defence

The stock is up by 32 per cent from its 52-week low of Rs 6,864 per share and gave multibagger returns of over 700 per cent in 5 years.

Solar Industries India Limited, through its wholly owned subsidiary Solar Defence and Aerospace Limited, has secured a significant contract with the Ministry of Defence, Government of India. The contract, valued at Rs 239 crore, involves the supply of multi-mode hand Grenades, with deliveries scheduled over the next year. This domestic order highlights the company's expanding role in the defence sector, emphasizing its capabilities in producing advanced defence products. The contract does not involve any related party transactions, and the company's promoter group has no interest in the awarding entity.

Earlier, Solar Industries India Limited and its subsidiary secured significant international export orders valued at Rs 2150 crore for the supply of defence products. These orders, awarded by international clients, are to be fulfilled for six years. This international contract specifically entails the provision of defence products, marking a substantial milestone in the company's export capabilities.

About the Company

Solar Industries Ltd (SIL) 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. SIL also ventured into the defence segment in 2010 and diversified into manufacturing propellants for missiles and rockets, warheads and warhead explosives.

The company has a market cap of over Rs 80,000 crore and has delivered good profit growth of 28.1 per cent CAGR over the last 5 years. As of December 31, 2024, the company’s order book stands at Rs 7,122 crore.

The shares of the company have an ROE of 33.4 per cent and an ROCE of 34.7 per cent. The stock is up by 32 per cent from its 52-week low of Rs 6,864 per share and gave multibagger returns of over 700 per cent in 5 years. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.