Solar Industries' Stock Target Raised To Rs 16,000 By Icici Securities Amid Robust Defence Growth

In nan existent volatile markets, Solar Industries Limited (SOIL) has managed to outperform its peers, according to ICICI Securities. The stock's capacity is underpinned by a unchangeable accepted India business and a increasing exports segment. ICICI Securities is peculiarly enthused astir nan company's quickly expanding defence business, which is poised to thrust important growth.

ICICI Securities anticipates a 35% compound yearly maturation complaint (CAGR) successful net per stock (EPS) done nan fiscal twelvemonth 2027, compared to fiscal twelvemonth 2024 levels. This anticipation is based connected continuous superior expenditure and SOIL’s ventures into caller domains. As a result, nan brokerage has accrued nan price-to-earnings (P/E) aggregate for Solar Industries to 70x, mounting a revised target value (TP) of INR 16,000 for nan stock.

The defence business is seen arsenic a awesome maturation driver, pinch ICICI Securities noting that SOIL is expected to beryllium nett rate affirmative by nan extremity of fiscal twelvemonth 2025, buoyed by beforehand payments for nan Pinaka order. The institution is positioned to put importantly up to INR 150 cardinal done fiscal twelvemonth 2030, combining soul accruals pinch indebtedness up to INR 50 billion.

ICICI Securities highlights SOIL’s evolving defence conception arsenic a cardinal area of interest. The bid book is projected to turn from INR 26 cardinal astatine nan extremity of fiscal twelvemonth 2024 to astir INR 130 cardinal by nan extremity of fiscal twelvemonth 2025. The company's strategical leap from supplying consumables to systems and platforms aligns good pinch world trends specified arsenic nan ReArm Europe inaugural and ammunition shortages.

Export orders, which dress up astir 50% of nan bid book, are said to trim customer attraction and execution risks substantially. The defence business is anticipated to lend 33-35% of wide gross by fiscal twelvemonth 2030, up from 19-20% successful fiscal twelvemonth 2025. This displacement underscores nan important net imaginable successful SoIL's defence sector.

ICICI Securities notes that nan investments successful nan defence assemblage will align pinch nan Memorandum of Understanding (MoU) already executed pinch Maharashtra’s government. These investments are apt to screen an array of defence products, including drones, unmanned aerial vehicles (UAVs), counter-drone systems, energetic materials, and new-generation explosives, on pinch subject carrier aircraft.

ICICI Securities continues to endorse Solar Industries arsenic nan apical prime successful nan defence space, recognising its capacity to leverage defence-related opportunities. The company’s important bid book maturation and strategical alignment pinch world defence needs position it good for sustained description , benefiting from some home and world demand.

Published on: Apr 23, 2025 1:37 PM IST