This stock seems to be a good play on Defense sector !
DSIJ Intelligence / 05 Oct 2016
SIL is India’s largest manufacturer of industrial explosives and initiating systems with complete explosives product range with a presence to global markets and across the value chain. SIL is the sole player to set up manufacturing unit of HMX and propellants products for explosive.
Portfolio management is all about diversification and including stocks from different sectors that are expected to do well. Defence sector is expected to do well after the Make in India initiative of prime Minister Narendra Modi gaining traction.
Solar industries Ltd (SIL) is one stock that stands to benefit from traction in the defence sector.
SIL is India’s largest manufacturer of industrial explosives and initiating systems with complete explosives product range with a presence to global markets and across the value chain.SIL is the sole player to set up manufacturing unit of HMX and propellants products for explosive. It is expected that defence ministry has plans to expand its procurement over next 5 years that will improve demand and opportunities for players in the sector. SIL expects to generate revenue to the tune of Rs 500-600 Crs till FY20 with margins expected to be at around 20 per cent plus in FY17-FY18.The company is well placed in the explosive industry and can expect to grow by 25 per cent CAGR over next 3 to 4 years.
Over 1 year the stock is down by 3.64 per cent. SIL is trading at Rs 668 per share up by Rs 12.50 per share or 1.91 per cent on Wednesday.
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