Buy Solar Industries; target of Rs 17200: ICICI Securities

ICICI Securities is bullish on Solar Industries has recommended buy rating on the stock with a target price of Rs 17200 in its research report dated August 10, 2025.

Broker Research

August 14, 2025 / 13:28 IST

BUY

26 Aug, 2025 12:21

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ICICI Securities's research report on Solar Industries

Solar Industries (SOIL)’s operating performance was in line with consensus’ estimate. EBITDA, at INR 5.3bn, jumped 19% YoY driven by robust defence and exports, compensating for the subdued performance in mining and infra segments, which were impacted on account of monsoon arriving early. Defence revenue rose 115% YoY to INR 4,180mn while exports and overseas grew 42.7% YoY to INR 8,260mn. EBITDA margins were largely stable QoQ at 24.8% (~150bps dent due to hyper-inflation in Turkey and FX fluctuations). Revenue guidance is maintained at INR 100bn (including INR 30bn from defence) with a slight improvement in EBITDA margins in FY26. We reinitiate coverage with a BUY rating and target price of INR 17,200, based on 55x FY28E EPS.

Outlook

We are building in 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. We reinitiate coverage on the stock with a BUY rating and TP of INR 17,200, based on 55x FY28E EPS (near its three-year average multiple).

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