Solar Industries India gets 239 crore order from Ministry of Defence

Solar Industries India Limited has boosted its order book by securing a new contract from the Ministry of Defence, the value of which is RS 239 Crore. This deal has been made with their subsidiary Solar Defence and Aerospace for supplying the multi-mode hand grenades. The company is expected to complete this order within the next 12 months.

Solar Industries is a specialized company that develops packaged and bulk explosives for various industries. It includes a few well-known infrastructure, mining, and construction corporations. After entering the defence sector about a decade ago, the company has continuously strengthened its portfolio by grabbing orders involving rocket propellants and explosives. According to the company’s Q3 FY25 reports, their profit witnessed a boost of almost 55% to RS 314.87 crore when compared with Q3 FY24.

The news of this deal has made the stock of Solar Industries climb by 1.5% with an intraday high of RS 9,115.10. It is almost 31% lower compared to the peak of RS 13,300 recorded in July last year. However, its recovery from 52-week low of RS 6,864.05 in March 2024 has given convincing hope to the investors. If we talk about the past five years, they have enjoyed an exceptional return of nearly 700%. This deal with the Ministry of Defence has cemented the company’s place in this sector. The long-term trajectory of their shares needs to be tracked, which may result in future growth.