Shares of Solar Industries India Ltd plunged over 6% on Thursday after the firm reported a 55.2% rise in net profit in Q3. The correction in the stock came after the company cut its sales guidance. In a concall, the firm said its expects sales volume to grow 8 - 10% in FY25 against 15% earlier.
The defence stock fell 6.5% to Rs 9020 today against the previous close of Rs 9,647.75 on BSE. The crash in the defence sector stock came after the firm reported its December 2024 quarter earnings. Market cap of the firm slipped to Rs 83,967 crore. Total 0.10 lakh shares of the firm changed hands amounting to a turnover of Rs 9.91 crore on BSE. The stock had a beta of 1.2 in the last one year, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 48.6, signaling the stock is trading neither in the overbought nor in the oversold zone. Solar Industries India shares are trading lower than the 5 day, 10 day, 20 day, 50 day but higher than the 100 day, 150 day and 200 day moving averages.
The stock has delivered multibagger returns of 297% and 624% in two and five years, respectively.
It hit a record high of Rs 13,300 on July 11, 2024. Since then, the Solar Industries stock has lost 30.37%.
Financial Performance
Solar Industries India logged a 55.2 percent year-on-year rise in Q3 net profit to Rs 315 crore against Rs 203 crore a year ago. Revenue climbed 38% to Rs 1973 crore in Q3 against Rs 1429 crore in the December 2023 quarter.
The firm reported a 48% rise in EBITDA to Rs 527 crore in Q3 of this fiscal against Rs 355.33 crore in the December 2024 quarter.
Solar Industries’ order book includs contracts from Coal India Ltd (CIL), Singareni Collieries Co Ltd (SCCL), and the defence sector. It stood at Rs 7,122 crore as of Decembr 2024 quarter.
The revenue from Defence sector came in at over Rs 400 crore for the current quarter.
Q3 shareholding
Seven promoters held 73.15 per cent stake or 6.61 crore shares and 83,952 public shareholders owned 26.85 per cent or 2.42 crore shares in the firm for the quarter ended December 2024.
Of these, 79,153 resident individuals held 42.05 lakh shares with capital up to Rs 2 lakh. Three shareholders held 0.55% stake or 4.98 lakh shares with individual capital over Rs 2 lakh.
28 mutual funds owned 11.74% stake or 1.06 crore shares at the end of Q3 his fiscal.
About Solar Industries India
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.