Solar Industries Secures ₹2,150 Crore Defence Order, Strengthens Global Presence
Solar Industries India Ltd has bagged a ₹2,150 crore defence supply order from an international client, to be executed over six years. This follows a ₹2,039 crore order in December 2024, reinforcing its global defence foothold. Despite missing its 30% revenue growth target for FY25 due to domestic slowdown, the company expects stable defence revenues with a 5-10% variation. The Pinaka order execution will extend over 8-12 years, ensuring long-term revenue visibility.
In Q3 FY24, Solar Industries reported a 55% YoY jump in net profit to ₹314.87 crore, with 38% revenue growth to ₹1,973 crore. EBITDA surged 48% to ₹527 crore, improving margins to 26.7% from 25%. The company, holding a 24% market share in India, operates 39 manufacturing facilities across 8 countries and is expanding into Thailand and Australia via a ₹1,200 crore capex in FY25. Additionally, a ₹12,700 crore MoU for a Mega Defence & Aerospace Project in Nagpur strengthens its growth outlook. The order book stands at ₹5,757 crore, with ₹1,500 crore defence revenue projected in FY25 (20% of sales).
Financially, the company boasts an ROCE of 32.5% and ROE of 30.9%, with stable margins at 19%-24%. The debt-to-equity ratio is 0.32, net worth ₹3,794 crore, and market cap ₹78,822 crore. However, valuations remain steep, with a P/E of 70.2, EV/EBITDA of 42.7, and a PEG ratio of 2.49.
Technical Outlook (1-Day & 1-Hour Charts)
The stock is in a downtrend, trading below key moving averages (70-EMA at ₹9,731.80 & 100-EMA at ₹9,976).
-> Daily Chart: Immediate support at ₹8,500, with further downside to ₹8,000-7,800 if broken. Resistance at ₹9,000-9,750.
-> 1-Hour Chart: Short-term resistance at ₹8,850-8,900, with ₹8,700 as key support. A break below ₹8,700 signals further weakness, while a close above ₹9,000 may trigger a pullback.
Trading Strategy
🔻 Short below ₹8,700 for ₹8,500-8,200
🔺 Long above ₹9,000-9,100 with volume confirmation
