Solar Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Solar Industries India Limited (SOIL) is poised for significant growth, driven by a robust order book of INR 214 billion and a strategic focus on its defense segment, which is expected to nearly double its revenue contribution in FY27. Management's ambitious revenue target of INR 140 billion reflects strong operational momentum across its core business areas, supported by substantial capital expenditure of INR 20.5 billion aimed at enhancing production capabilities. The company's transition into a high-tech defense manufacturer aligns with the expanding global defense spending and domestic self-sufficiency initiatives, which are expected to bolster revenue growth. However, execution risks related to heavy capex and potential volatility in government procurement timelines remain critical watchpoints. Vista's financial outlook anticipates accelerating revenue growth beyond historical trends, with stable margins expected to be maintained despite inflationary pressures. The favorable macro environment, characterized by increasing government capex and a stable liquidity backdrop, further supports SOIL's growth trajectory. Over the next 12-24 months, key opportunities include expanding international markets and advancing product diversification, while headwinds may arise from commodity price fluctuations and working capital management challenges
Why We Like This Stock
- Robust order book of INR 214 billion supports strong revenue visibility and growth potential
- Strategic focus on defense manufacturing aligns with increasing global defense spending and domestic initiatives
- Significant capital expenditure planned to enhance production capabilities and support long-term growth
Things To Watch Out For
- Execution risks associated with heavy capital expenditure and potential delays in government procurement
- Inflationary pressures may impact margins despite management's confidence in maintaining stability
- Increased working capital requirements could pose challenges in managing supply chain continuity
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,070 | 7,540 | 9,838 | 12,753 | 16,841 |
| Profit Before Tax (Cr.) | 1,272 | 1,805 | 2,365 | 3,246 | 4,219 |
| PBT Margin | 21.0% | 23.9% | 2403.9% | 25.5% | 25.1% |
| Net Profit (Cr.) | 936 | 1,360 | 2,003 | 2,735 | 3,450 |
| Earnings Per Share | 99.1 | 141.7 | 214.8 | 293.3 | 381.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 24,270 | 14-Aug-2026 |
| Goldman Sachs | ▲ Buy | 20,180 | 14-Aug-2026 |
| ICICI Securities | ▲ Buy | 23,500 | 14-Aug-2026 |
| Kotak Securities | ▼ Sell | 11,200 | 14-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 16-Jun-2026 |
| Morgan Stanley | ▲ Overweight | 20,270 | 14-Aug-2026 |
| Nuvama | ▲ Buy | 23,435 | 14-Aug-2026 |
Company Overview
Show Company Profile
Solar Industries India Limited, together with its subsidiaries, engages in the manufacture and sale of industrial explosives and explosive initiating devices in India and internationally. It offers industrial explosives, such as bulk and packaged explosives; and initiating systems, including electronic, electric, non-electric, and plain detonators, as well as cord relays, cast boosters, detonating cords, and aluminum elemented det products. The company provides defense products, including unmanned aerial systems and drones, ammunitions, high energy materials, bombs and warheads, rockets and missiles, initiating systems and detonix, chaffs and flares, and mines devices. Its products are used in mining, infrastructure, construction, defence, and the space sectors. The company was formerly known as Solar Explosives Limited and changed its name to Solar Industries India Limited in February 2009. The company was founded in 1983 and is based in Nagpur, India.