Solar Industries India Limited
Motilal Oswal Initiates Buy on Solar Industries India with ₹28,800 Bull Case Target
Solar Industries India Limited shares rose nearly 2% during intraday trading on Tuesday after Motilal Oswal Financial Services initiated coverage with a 'Buy' rating. The brokerage cited the company's strengthening position in the defence value chain, moving beyond industrial explosives to become an integrated defence manufacturer.
Motilal Oswal assigned a base case target price of ₹23,000 per share, implying upside from current levels. In its bull case scenario, the brokerage sees a 55% upside, setting a target of ₹28,800, driven by faster execution of the defence order book, higher realisations, and elevated ammonium nitrate prices. The base case factors in growth from new Pinaka variants, Bhargavastra, 155 mm ammunition, and Project Kusha.
Under the bear case, Motilal Oswal assumes 15% lower profitability and a 10% lower multiple, setting a target of ₹17,400 due to risks of slower-than-expected order book execution and weaker realisations.
The brokerage highlighted Solar Industries' ongoing acquisition of South Africa-based Omnia Holdings Limited, post which the industrial explosives to defence mix is expected to shift to 78%/22% by FY29. Consolidated revenue and PAT are projected to grow at a CAGR of 43% and 34%, respectively, from FY26 to FY30.
At 10:44 am on BSE, the stock traded at ₹19,773, up 2.65%, with a market capitalisation of ₹1,78,929.15 crore. The share price has risen 52.67% over the past six months, 328% in three years, and nearly 899% over five years. The stock touched its 52-week high of ₹22,630.05 on October 15, 2025, and its 52-week low of ₹11,641.10 on December 18, 2025. Return on equity (ROE) stood at 49.07%.
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