Shares of Solar Industries soared 11 per cent, reaching a new all-time high of ₹11,192 on the BSE. The company also surpassed the 1 lakh crore market cap milestone during today’s session.
This surge followed a video posted by news agency ANI, which reported that Economic Explosives, a subsidiary of Solar Industries in Nagpur, had developed three new explosive formulations.
“The three new explosive formulations can prove to be a game changer for our armed forces due to the sheer enhancement of firepower & explosive effect. SEBEX 2 is a new explosive formulation that provides a much more powerful blast effect than any currently available solid explosive,” the company was quoted as saying by ANI.
Conventional explosives, such as DENTEX and TORPEX, used in warheads, aerial bombs, and various other ammunitions worldwide, have a TNT equivalence of 1.25 to 1.30.
According to its latest annual report, Solar Industries has an order book valued at ₹5,129 crore and a sales volume of 5.5 lakh MT.
For the quarter ending March 2024, Solar Industries reported its highest ever yearly EBITDA of ₹1,414 crore and a PAT of ₹875 crore. The company’s net revenue was ₹1,611 crore, compared to ₹1,929 crore in Q4FY23.
Over the past year, shares of Solar Industries have delivered multibagger returns of approximately 192 per cent, and have gained nearly 61 per cent in the current calendar year.
The company has recently distributed dividends amounting to ₹8.5 per share. Trading volumes for the stock are currently eight times higher than its 20-day average. Moreover, the stock has consistently delivered positive annual returns since 2019, exceeding 50 per cent annually every year since 2021.
Technically, the stock is positioned well above all its significant exponential moving averages and is oscillating near the 60 level on the RSI, according to Trendlyne data.