Buy Solar Industries India, target price Rs 4760: ICICI Securities

ICICI Securities has buy call on Solar Industries India with a target price of Rs 4760. The current market price of Solar Industries India is Rs 3948.3.

Solar Industries India, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 35725.47 Crore) operating in Chemicals sector.

Solar Industries India key Products/Revenue Segments include Explosives (Industrial) and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1818.99 Crore, up 15.79 % from last quarter Total Income of Rs 1570.96 Crore and up 77.47 % from last year same quarter Total Income of Rs 1024.94 Crore. Company has reported net profit after tax of Rs 219.29 Crore in latest quarter.

The company’s top management includes Mr.Satyanarayan Nuwal, Mr.Manish Satyanarayan Nuwal, Mr.Suresh Menon, Mr.Milind Deshmukh, Mr.Ajai Nigam, Mrs.Sujitha Karnad, Mr.Amrendra Verma, Mr.Sanjay Sinha. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 9 Crore shares outstanding.

Investment Rationale
Recently, Defense Acquisition Council (DAC) has accorded Acceptance of Necessity (AON) for 27 proposals amounting to Rs 885bn for procurement of Helina Anti-tank guided missiles, launchers and associated equipment; VSHOARAD missile system; Brahmos launcher and Fire control system for Shivalik class of ships and Nex-Gen Missile Vessels for Indian Navy; futuristic infantry combat vehicles and light tanks; naval anti-ship missiles and Nex-Gen offshore patrol vessels; and new range ofmissile systems, guided bombs and advanced surveillance systems for Indian Air Force. The brokerage believes these are largely positive for Solar Industries.

Promoter/FII Holdings
Promoters held 73.15 per cent stake in the company as of 31-Dec-2022, while FIIs owned 6.72 per cent, DIIs 14.45 per cent.