Explosive Returns: This Defence Stock Blasts Up 10x From 2019 Lows!

Explore Solar Industries' remarkable growth with a 10x increase in stock price driven by next-gen defence technologies and solid financial results. Learn more about its future investment potential.

solar industries india ltd., defence stock, nse, bse, sebi, sebex, limo, liquide

Solar Industries India Ltd has been making headlines with its impressive stock performance, and its market capitalization crossing a significant milestone of Rs 1 lakh crore. The stock surged by as much as 11% to hit a record high of Rs 11,190 on the National Stock Exchange (NSE) on Tuesday, 2nd July. This rally was sparked by an exciting development disclosed by the company.

Game-Changing Innovations for the Armed Forces

In a significant stride toward self-reliance in munitions, the Indian Navy has successfully carried out certification tests for SEBEX 2, a powerful new explosive developed by Economic Explosives Ltd, a subsidiary of Solar Industries in Nagpur.

This advanced formulation by Solar Industries is claimed to have a blast effect surpassing any existing solid explosives by a notable margin. It is reportedly 2.01 times more potent than traditional TNT (Trinitrotoluene). Explosive power is often gauged by TNT equivalence, where a higher value indicates increased destructive capacity.

These advancements are set to revolutionize the capabilities of the Indian armed forces. Solar Industries officials highlight that the SEBEX 2, with its superior TNT equivalence, provides enhanced firepower and greater destructive potential. This breakthrough not only enriches Solar Industries' offerings but also marks significant progress in defence technology.

Solar Industries Financial Highlights

Solar Industries has demonstrated robust financial health, with an impressive order book of Rs 5,129 crore and sales volume reaching 5.5 lakh MT. Its Q4FY24 financial results slightly surpassed analyst expectations, reporting a 9% increase in net profit at Rs 240 crore compared to Rs 220 crore in the previous corresponding quarter. 

Solar Industries Net Profit
Solar Industries Net Profit

Despite challenges like hyperinflation and currency depreciation in some international markets, the defence player reported a 23.6% year-on-year increase in explosive sales volume due to high demand across all segments. Additionally, the company's financial health improved as it managed to reduce both working capital and debt levels. The firm also distributed a dividend of Rs 8.5 per share.

What’s Next for Solar Industries?

As Solar Industries continues to advance towards self-reliance in defence manufacturing, its defence segment's impressive 75% year-on-year growth stands out. The company's management forecasts a threefold increase in defence revenue by FY25, supported by a strong order book that now makes up 20% of total sales. 

Given these solid growth prospects, the question arises: Is this the right time to invest in Solar Industries India Ltd? Can the stock sustain its momentum?

Ask LiMo, world’s first-ever AI copilot for stock investing that provides both a judgement and the reasoning behind it. LiMo will advise you on the optimal entry points based on technical indicators and propose possible target levels accordingly.

A black background with text and a pink and yellow square with two circles

Description automatically generated

For an in-depth grasp of the financial markets and potential investment avenues, delve deeper with Liquide. Boasting advanced tools like LiMo and thorough market insights, Liquide equips you with the knowledge to make informed investment decisions. Download the Liquide App now from the Google Play Store or Apple App Store and embark on a journey of informed and successful investing.