Shares of Solar Industries India are expected to rise 30%, according to brokerage Goldman Sachs. Solar Industries stock is among the brokerage’s top picks after the Defence Acquisition Council (DAC) cleared proposals worth Rs 79,000 crore last week.
Solar Industries India with over Rs 17,000 crore order book is expected to be a key beneficiary of the council’s latest move. The multibagger stock ended on a flat note on Friday at Rs 14,031 against the previous close of Rs 14,024. Market cap of the explosives firm stood at Rs 1.26 lakh crore. Total 2203 shares of the firm changed hands amounting to a turnover of Rs 3.10 crore.
Goldman Sachs price target is fixed at Rs 18,215 the stock as the brokerage said the development reinforces its belief in an increasing total addressable market (TAM) for domestic defence firms.
The stock had a beta of 0.9 in the last one year, indicating low volatility during the period.
The defence sector stock hit a record high of Rs 17,805 on June 30, 2025 this year. The stock has clocked multibagger returns of 171% and 1263% in two and five years, respectively.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 47.6, signaling the stock is trading neither in the overbought nor in the oversold zone.
Solar Industries India shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day but higher than the 20 day, 200 day moving averages.
ICICI Securities has a price target of Rs 17,200 on the defence stock.
It expects a revenue CAGR of 27% over FY25-28E and EBITDA margin of almost 27% in FY28E, a 100bps improvement over FY25 due to improved contribution from defence.
Philips Capital has a price target of Rs 15,900 on Solar Industries.
The defence sector’s transition from policy-driven to execution-led earnings delivery is evident. Solar Industries is well-positioned to capture future opportunities.
Goldman Sachs
“We expect SOIL to see rapid growth in its Defense business, led by capacity build-up in ammunition and energetic material segments, a robust export order book and diversification into high technology areas. SOIL enjoys industry-leading asset turns and cash conversion cycle,” said the global brokerage.
“Moreover, its non-defence business insulates its earnings from order risk in the defense industry. We are not concerned that it will post negative free cashflow until FY28 given we expect capex intensity to remain high in the near term. In our view, SOIL’s high valuation multiples are fully supported by its steady earnings growth of 25%+ and RoE in excess of 25% in FY25-28E, added Goldman Sachs.
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.