Solar Industries explodes on the bourses amid strong Q2 results; what should investors do?

The stock has hit a fresh all-time high of Rs 4224.85 post healthy Q2 numbers. 

Solar Industries have once again shown the investors that they mean business. For its astronomical rise of over 72% this year, the company has delivered its justification amidst its strong Q2 FY2022-23 numbers. The company delivered strong growth of 99% YoY on its net sales, which stood at Rs 1566.90 crore. Net profit grew massively by 140% to Rs 176.38 crore in September 2022. Robust demand was seen despite inflationary costs, and management expects strong business growth to continue in future.

Solar Industries Limited is primarily engaged in the manufacturing of explosives and accessories. It also manufactures, supplies, and exports industrial explosives and initiating systems to leading industries in India. With a market capitalization of about Rs 37,500 crore, it is one of the leading players in its industry. On the bourses, the stock has hit a fresh all-time high of Rs 4224.85 post healthy Q2 numbers. It has soared nearly 3% backed by good volumes. In 2 years, the stock has turned Rs 1 lakh investment to over 4 lakh, thus making investors rich.

Technically, the stock has registered a breakout from its 6-week cup pattern with above-average volume. The 14-period daily RSI (69.85) indicates strong strength in the stock. The daily MACD has signalled a bullish crossover, which adds strong upside potential. The OBV is at its peak, thus demonstrating strong trading activity. The TSI and KST are in the bullish zone. The Leder Impulse system has charted consecutive bullish bars. Overall, the stock is technically strong and is expected to continue its bullish trend as it shows no signs of weakness.

Currently, the SOLARINDS share price trades at the Rs 4200 level on NSE. Long-term investors, as well as momentum traders, should include this stock in their watchlist as it is likely to provide strong money-making opportunities in times to come.