Solar Industries shares tank 10% in early trade; here’s why

Shares of Solar Industries India Ltd slipped over 10% today after the explosive manufacturer said an explosion incident occurred on December 17, 2023 at around 9:00 am in its factory at Chakdoh, Bazargoan, Nagpur, resulting in loss of lives of 9 workmen. The multibagger defence stock fell 10.51% to Rs 6155.35 in early trade on BSE. Market cap of the firm slipped to Rs 60,822 crore.

Total 0.15 lakh shares of the firm changed hands amounting to a turnover of Rs 9.50 crore on BSE. The stock had a beta of 0.4, indicating very low volatility in the last one year.

In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 64, signaling the stock is trading in the overbought zone. Solar Industries India shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

In a year, the stock has gained 64.09 per cent and risen 52.70 per cent this year.

"This is to inform you that an explosion incident has occurred today i.e December 17, 2023 at around 9:00 am in one of our processes Building No. HRCPCH-2 (Pallet Casting House). The incident has resulted in loss of lives of 9 workmen working in the plant. The company deeply mourns this loss of life and stands with the family of the deceased in this moment of grief," said the firm in a communication to bourses.

The defence sector stock hit an all-time high of Rs 8,499 on November 22, 2023. It fell to a 52-week low of Rs 3456.95 on July 11, 2023.

Solar Industries India reported a 13.43 percent year-on-year rise in Q2 net profit to Rs 200.1  crore against Rs 176.4 crore in the September 2022 quarter. However, consolidated revenue from operations fell to Rs 1355.2 crore in Q2 against Rs 1571 crore in the September 2022 quarter.  The firm reported the highest ever EBITDA margin of 24.95% in Q2 of this fiscal against 19.08% in the September 2022 quarter.

About Solar Industries 

Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.

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