Hi Sagar,
That would be great if we get some thing from IR
but in any case i feel this is a corporate governance issue (rental agreement ), this only raises more questions on management …
i meant rental agreement/ related party transaction in relation to above corporate filing only …
problem is with non Discloser being a majority promoter
First rockets produced by private sector(Economic Exlosive Ltd.,Subsidiary of Solar Ind.) successfully test fired:Now, this is big news for Solar and expect order from defence in near future.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/1a16d843-89e2-4ce8-ae29-7a85fa8475b1.pdf
We wish to inform you that our erstwhile director, Mr. Kailash Chandra Nuwal and his son, Mr. Rahul
Nuwal and wife, Mrs. Indira Kailashchandra Nuwal (“Petitioners”) have instituted proceedings by
way of the captioned Company Petition before the Hon’ble National Company Law Tribunal,
Mumbai Bench (“NCLT”) against inter alia Mr. Kailash Chandra Nuwal’s vacation of office as
director of Solar Industries India Limited (“Company”) and the other reliefs as mentioned in the
petition. Till this date no interim order is passed by Hon’ble NCLT in the above matter.
Solar industries
Concall takeaways
Outlook: Company to maintain revenues/margin of 2QFY20 in 2QFY21. Also, company aims to achieve Fy20 revenue in FY21 despite loss of sales in 1Q.
Raw material prices: Ammonium Nitrate prices has fallen but should improve with demand
Gross margin improvement in 1Q was led by lower RM costs and better mix.
Industry size of explosives in South Africa is USD680mn where Solar has world class facilities and aims to have ~10% market share. Recently it won a contract of 2 years here.
Company won a five year contract in Ghana from a large mining company in 1Q.
Defence: Order of 1 mn pieces of MMHG is expected soon which has to be delivered
in two years.
Recently, India successfully test fired Pinaka rockets made indigenously and Solar’s subsidiary Economic Explosives Limited provided the missiles for the Pinaka rockets. Solar is confident of this order coming to them in next 6-9 months.
Company is witnessing signs of revival in all the countries in operates in and is confident
of ramp-up in revenues from overseas /export business in FY21.
Housing and infrastructure: Revenues in this segment saw steepest decline in 1Q
but should gradually pick up from 2Q on wards;
Net D/E: 0.46x in 1QFY21 would be maintained below 0.5x going ahead
Capex: INR2.1bn in FY21 for capacity, technology upgradation and would be funded
internally.
Capacity: FY20 overall capacity was 577KMT which includes domestic 450KMT and
overseas capacity of 127KMT.
Solar is looking very good on technical charts and also found that its fundamentally strong as well
Any developments on the Pinaka missile orders for Solar ?
Concall takeaways
Guidance: Targeting growth of +30% sectors in topline /bottomline both led by recovery in all esp in defence, Export& overseas and domestic all will contribute to 30% growth.
Defence business: Some disruptions in new order processing and execution of existing orders in 4Q but expecting strong upside in FY22. Pipeline for defence at INR6.8bn which includes INR4.5bn for MMHG to be executed in 2 years. Apart from that have participated in RFP of Pinaka rockets. SOIL already received MMHG order from South East Asian countries
Export & overseas: Currently operations in 6 countries; this year Tanzania will be operational; Next 5 years, 3-4 countries will be added
Raw material prices: Sharp growth in realization was led by rise in commodity prices which were passed on through contracts
Capex: For FY21 stood at INR2.6bn while INR3.15bn in FY22; Next two year will see the impact of this capex which can have asset turn of 2.5x. Board of Director approved of expansion of packaged explosives packaging at 3 Greenfield defence packaging units. This would diversify supply from single to multiple location and support growing demand.
Net D/E: Net debt stood at INR6.1bn in Mar’21 vs. INR6.1bn in Mar’20 and net D/E would be maintained below 0.5x-0.55x going ahead despite growth capex. Working capital stood at 108 days (vs. 113days on Mar’20)
Market share: CIL: 25%; Non mining: 27-28%; Expanding footprints in South and then North which will drive M.S in domestic markets
RoCE: With rev growth of 30%/20% in next two years , ROCE should reach to 27-28% vs current 22%.
Currency translation losses: INR34crs loss in 4QFY21 and INR125crs loss in FY21.
Disclosure: Invested recently at around levels of 1750 and forms 2% of my portfolio.
Was going through this thread, interestingly we have the same situation again even after a decade. Both Solar and PI industries quoting at similar PE multiples. PI I guess still would score over Solar
Yes…but this time solar is more established and has added tailwinds from the defence sector.
Does anyone know anything about this?
With reference to the Company’s intimation dated December 14, 2021, it is being informed that, 1) The Company, Solar Industries India Limited has filed an appeal against the order of the Hon’ble National Company Law Appellate Tribunal (‘NCLAT’) in the Company Appeal (AT) No. 29 of 2021 dated December 14, 2021, before the Hon’ble Supreme Court on January 5, 2022 (‘Civil Appeal’). 2) The Civil Appeal was listed before the Hon’ble Supreme Court virtually on January 10, 2022. After considering the submissions of the parties, the Hon’ble Supreme Court was pleased to pass an interim order as follows:- ‘Meanwhile, considering the facts and circumstances of this case, it is directed that the operation of the impugned orders of NCLT dated 09.02.2021 and NCLAT dated 14.12.2021 shall remain stayed till the next date of hearing.’ The matter is now listed after 6 (six) weeks in the week commencing from March 7, 2022.
I came across this judgement related to Solar Industries and the Directors.
I am not an expert on reading the legal document. Can someone analyze this and share the summary?
https://www.casemine.com/judgement/in/602427c19fca194fc0c3d433
The recent underperformance in the stock could be related to this legal battle
i dont think thats the reason for stock movement…
The article/judgement is dated february,2021
It is more than just a chemical explosive stock.
Pinaka Missile to be exported by solar industries !
In private sector , Solar is the only approved vendor to make and supply Pinaka missile.
Discl: it is one among in my defence basket.
Please do your own assessment before investing
Was reading a book, which points out there is no end to arm race. Once a country buy a new type of jet/tank/grenade etc. Enemy HAS TO buy same/alternative. It is race. Arm companies benefit this way.
For solar Industries, strong demand for explosives, rising opportunities in the defense sector, improving overseas market opportunity should aid revenue/margins.
Disclosure: Invested
https://idrw.org/eel-completes-trials-of-nagastra-1-loiter-munition/
I was going through the company Annual report for 2021-22. Lot of positives and good improvement in numbers.
Only red flag I see is the Auditor firm M/s S R B C & Co. LLP. They are the same firm who audited IL&FS in 2017-18. Quoting from moneylife article.
“Audit regulator National Financial Reporting Authority (NFRA) has found several deficiencies in the statutory audit conducted by SRBC & Co LLP”
I request seniors to comment if you know anything.
Disclosure : Invested
