Rs 1,044 to Rs 6,240: This defence stock turned into a multibagger in three years; down 26% from record high
Multibagger stock: Solar Industries India shares hit an all-time high of Rs 8,499 on November 20, 2023. It has lost 26.57% from the record high.
- Dec 1, 2023,
- Updated Dec 1, 2023 10:32 AM IST
Shares of Solar Industries India Ltd have delivered multibagger returns in the last three years. The defence stock, which closed at Rs 1044 on November 27 surged to a high of Rs 6240 in the current session, clocking over 500% returns during the period. In comparison, the benchmark Sensex has surged 51% during the period. The defence sector stock, hit an all-time high of Rs 8499 on November 20, 2023. It has lost 26.57% from the record high. Solar Industries shares fell to a 52-week low of Rs 3456.95 on July 11, 2023.
At 10:06 am today, Solar Industries India stock was trading at Rs 6240 against the previous close of Rs 6252.25 on BSE. Market cap of the firm slipped to Rs 56,465 crore. Total 699 shares of the firm changed hands amounting to a turnover of Rs 43.49 lakh on BSE. The stock had a beta of 0.5 indicating very low volatility in the last one year.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 52.3, signaling the stock is trading neither in the overbought nor in the oversold zone. Solar Industries India shares are trading higher than the 50 day, 100 day and 200 day but lower than the 5 day, 10 day, 20 day moving averages.
In a year, the stock has gained 53.11 per cent and risen 41.18 per cent this year.
Brokerage Nirmal Bang has maintained its buy call raising its target price to Rs 7,665.
"We believe that the outlook for SOIL remains strong on account of higher off-take by CIL and robust demand from miners amid the ongoing Housing & Infra push. Ramping up of exports and defence operations is likely to be the key growth lever going ahead. We continue to maintain BUY on SOIL with a revised target price (TP) of Rs 7,665 (vs Rs 6,450 earlier), valuing it at 45x Dec’25E EPS (vs 40x Sept’25E EPS earlier)," said the brokerage.
Solar Industries India reported a 13.43 percent year-on-year rise in Q2 net profit to Rs 200.1 crore against Rs 176.4 crore in the September 2022 quarter. However, consolidated revenue from operations fell to Rs 1355.2 crore in Q2 against Rs 1571 crore in the September 2022 quarter.
The firm reported the highest ever EBITDA margin of 24.95% in Q2 of this fiscal against 19.08% in the September 2022 quarter.
About Solar Industries
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.
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Shares of Solar Industries India Ltd have delivered multibagger returns in the last three years. The defence stock, which closed at Rs 1044 on November 27 surged to a high of Rs 6240 in the current session, clocking over 500% returns during the period. In comparison, the benchmark Sensex has surged 51% during the period. The defence sector stock, hit an all-time high of Rs 8499 on November 20, 2023. It has lost 26.57% from the record high. Solar Industries shares fell to a 52-week low of Rs 3456.95 on July 11, 2023.
At 10:06 am today, Solar Industries India stock was trading at Rs 6240 against the previous close of Rs 6252.25 on BSE. Market cap of the firm slipped to Rs 56,465 crore. Total 699 shares of the firm changed hands amounting to a turnover of Rs 43.49 lakh on BSE. The stock had a beta of 0.5 indicating very low volatility in the last one year.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 52.3, signaling the stock is trading neither in the overbought nor in the oversold zone. Solar Industries India shares are trading higher than the 50 day, 100 day and 200 day but lower than the 5 day, 10 day, 20 day moving averages.
In a year, the stock has gained 53.11 per cent and risen 41.18 per cent this year.
Brokerage Nirmal Bang has maintained its buy call raising its target price to Rs 7,665.
"We believe that the outlook for SOIL remains strong on account of higher off-take by CIL and robust demand from miners amid the ongoing Housing & Infra push. Ramping up of exports and defence operations is likely to be the key growth lever going ahead. We continue to maintain BUY on SOIL with a revised target price (TP) of Rs 7,665 (vs Rs 6,450 earlier), valuing it at 45x Dec’25E EPS (vs 40x Sept’25E EPS earlier)," said the brokerage.
Solar Industries India reported a 13.43 percent year-on-year rise in Q2 net profit to Rs 200.1 crore against Rs 176.4 crore in the September 2022 quarter. However, consolidated revenue from operations fell to Rs 1355.2 crore in Q2 against Rs 1571 crore in the September 2022 quarter.
The firm reported the highest ever EBITDA margin of 24.95% in Q2 of this fiscal against 19.08% in the September 2022 quarter.
About Solar Industries
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.
Also read: Aster DM Healthcare shares climbed 11% today. What analysts say on GCC stake sale