Solar Industries Stock Hits Record as Nagastra Drones Star in Operation Sindoor

Shares of Solar Industries Limited surged to a record high following the revelation that indigenously developed Nagastra drones were successfully deployed in 'Operation Sindoor'. Despite a generally declining market, Solar Industries' stock rose by 1.5% on Thursday, closing at ₹13,934.90 on the Bombay Stock Exchange (BSE)—the highest level in the company’s history. A total of 2,672 shares were traded, generating a turnover of ₹3.66 crore.

Nagastra drones, categorized as loitering munitions, played a critical role in the aerial strike targeting enemy airbases. Alongside these, similar systems such as the Warmate were also deployed in the operation. The spike in investor interest was attributed to this development.

Solar Industries' stock, known for its volatility, has a beta value of 1.1 over the past year, indicating high price fluctuations. Technically, the stock’s Relative Strength Index (RSI) stood at 70.1, suggesting that it is trading in an overbought zone. It continues to trade above its 5, 10, 20, 50, 100, 150, and 200-day moving averages. Over the past two years, the stock has delivered a return of 267%, and an astounding 1,453% over the past five years, marking it as a notable multi-bagger. It had touched a 52-week low of ₹7,889.95 on June 4, 2024.

Nagpur-based Solar Industries manufactures the Nagastra drones through its subsidiary, Economic Explosives Limited (EEL). Bengaluru-based ZMotion Technologies is also a partner in the drone development process. In June last year, Solar Industries delivered the first batch of 480 Nagastra-1 loitering munitions to the Indian Army. These systems were made with over 75% indigenous technology.

The Nagastra drone is designed to loiter over a specified area, identify targets, and strike with precision. It has the capability to change its target mid-flight if required. Equipped with a powerful high-explosive fragmentation warhead weighing one kilogram, the drone is adept at neutralizing sensitive targets. It features advanced capabilities such as surveillance cameras for day and night operations, communication modules, a ground control station, and a pneumatic launcher.

Nagastra-1 is a man-portable system weighing approximately 30 kilograms. If a mission is aborted or if a target is not identified, the drone is programmed to return safely to its base using a parachute, allowing for its reuse.

Solar Industries is an Indian company primarily engaged in the production of industrial explosives for the mining and infrastructure sectors. In addition to its core offerings, the company has also expanded into defense manufacturing.