Solar Industries shares zoom 10% to record 52-week high; market cap touches ₹1 lakh crore

Shares of Solar Industries, the Nagpur-based explosives manufacturer, zoomed by over 10% during the trading session on Tuesday to clock a 52-week high.

During the first half of the day's trading, the shares peaked to an intraday high of ₹11,190 apiece on the National Stock Exchange (NSE). This was the highest in the last 52 weeks, and was up 10.8% as against the last closing price.

The record surge pushed Solar Industries' market capitalisation value above the ₹1 lakh crore-mark.

By mid-day trade, Solar Industries pared some of the gains but still remained strongly in the green. At 12:35 pm, the shares were trading at ₹10,969.5 apiece on the NSE, up 8.62%. The market cap came down from the day's high to ₹99,263 crore.

What pushed Solar Industries shares?

According to analysts, Solar Industries shares were on the uptrend due to the development of three new explosive formulations by Economic Explosives Ltd, a subsidiary of the company.

News agency ANI had, a day earlier, shared a video showing Economic Explosives testing the new formulations. Officials of Solar Industries who spoke to ANI said they "can prove to be a game changer for our armed forces due to the sheer enhancement of Firepower & Explosive Effect".

The rally in Solar Industries stock also comes a week after sectoral peer Premier Explosives recorded a 10% surge in its shares. The latter's stock had rallied on Friday, turned ex-date for 1:5 split.

However, Premier Explosives has edged lower in trading since the surge last week, with the shares dropping by 5% in the last five days. At 12:44 pm, it was trading at ₹733 apiece on the NSE, down 3.2% as against the last closing price.

Year-to-date, both the explosives company have recorded a sharp rise. Premier, which is the smaller among the two entities, has recorded a 134% surge in share value, whereas Solar Industries has climbed by 61% in 2024 so far.