Buy Solar Industries; target of Rs 16,000: ICICI Securities

ICICI Securities is bullish on Solar Industries recommended buy rating on the stock with a target price of Rs 16,000 in its research report dated April 22, 2025.

Broker Research

April 23, 2025 / 13:39 IST

Buy

26 Aug, 2025 12:21

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ICICI Securities research report on Solar Industries

In the current volatile markets, Solar Industries’ (SOIL) stock has outperformed its peers. Its traditional India business continues to be on a stable footing and the exports and overseas segment is also expanding. However, we are quite enthused about the defence business, where the company is rapidly expanding its scale and scope. As a result, we expect a 35% CAGR in EPS through to FY27E (compared to FY24 levels).

Outlook

Hence, we expect growth in the high-margin defence business to sustain even beyond FY27E driven by steady capex and SOIL’s foray into new domains. Taking cognizance of growth opportunities, we raise our P/E multiple to 70x (earlier 60x), resulting in a revised TP of INR 16,000 (earlier INR 13,720). We continue to recommend SOIL as the top pick in the defence space.

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