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Solar Industries stock at record high; expert warns on valuation
Solar Industries stock at record high; expert warns on valuation
Shares of Solar Industries, a defence and explosives maker, hit a record high on the BSE after the company announced strong quarterly results. Net profit rose 93% and revenue jumped 70% year…
The Story in Brief
Shares of Solar Industries, a defence and explosives maker, hit a record high on the BSE after the company announced strong quarterly results. Net profit rose 93% and revenue jumped 70% year on year, with margins also expanding.
Market expert Sudip Bandyopadhyay said the company has outperformed peers in the defence segment, but he flagged valuation concerns. He does not recommend buying at current levels and suggests long-term investors accumulate during market dips. He remains positive on the long-term growth story linked to defence prospects.
The Indian Opinion
The 93% profit jump is impressive, but the stock's valuation already reflects high expectations. Investors ignoring the price-to-earnings multiple could get burnt if growth slows. Bandyopadhyay's cautious optimism strikes a balance, buying on dips is sensible, but chasing the record high is not. The key test will be whether order inflows from defence contracts sustain this profit trajectory in the quarters ahead.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
