Solar Group market capitalisation touches ₹1.84 lakh crore

Nagpur: Solar Group, one of India’s largest private-sector defence explosives manufacturers, achieved a market capitalisation of Rs1.84 lakh crore on Thursday as its shares touched an intraday high of Rs20,400 before settling at Rs 20,325. The Nagpur-based company’s stock is currently trading at a price-to-earnings ratio of 109.64.The company reported a strong start to the financial year, posting an 89% year-on-year rise in net profit for the first quarter. Profit after tax (PAT) stood at Rs666 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 82% to Rs1,024 crore compared with the corresponding period last year.Backed by the robust performance, the company remains on track to achieve its revenue target of Rs 14,000 crore for the current financial year.The defence segment continued to be the principal growth driver, with revenue from the business increasing 123% year-on-year to Rs933 crore. The company said its defence order book currently stands at Rs18,000 crore. Defence contributes around 19% of Solar Group’s overall turnover.As part of its planned capital expenditure of Rs2,050 crore, the company has already invested Rs450 crore. It also commissioned new manufacturing facilities at Dholpur in Rajasthan, Odisha and Dhule in Maharashtra, according to a stock exchange filing.Besides defence products, Solar Group manufactures commercial explosives used by the infrastructure and mining sectors.Commenting on the results, Solar’s managing director Manish Nuwal said the company’s strategy of establishing itself as a trusted defence partner in India and overseas was beginning to yield tangible results.“The defence business continued to be a key growth driver, registering growth of 123%. With an order book of Rs18,000 crore and a growing portfolio of indigenously developed projects, we are witnessing a strong pipeline of opportunities,” he said.The company’s international business recorded 65% growth during the quarter, while domestic operations expanded by 52%.