Archive · 22 Sep 2026
Motilal Oswal Rates Solar Industries Buy, Sees Defence Growth
Solar Industries makes explosives used in mining and defence.
Motilal Oswal has started following the company and rated its shares ‘Buy.’
Its main price target is ₹23,000 per share.
In a very positive case, the target is ₹28,800, while in a weaker case it is ₹17,400.
The company is trying to make more defence products, including Pinaka rockets, ammunition, drones and counter-drone systems.
It also has a large defence order pipeline, including international orders and a Pinaka order.
Solar Industries is seeking to acquire South Africa-based Omnia Holdings.
The deal could improve access to important raw materials but may also increase debt and pressure margins.
Motilal Oswal expects strong revenue and profit growth if these plans are executed successfully.
Motilal Oswal initiated coverage of Solar Industries India with a ‘Buy’ rating and a ₹23,000 base-case target.
The brokerage’s bear- and bull-case targets are ₹17,400 and ₹28,800, respectively; the bull case implies 55% upside according to one article.
Solar Industries shares rose nearly 2% during Tuesday’s intraday trading session after the recommendation.
The company is expanding from industrial explosives into ammunition, Pinaka rockets, drones, counter-drone systems and other defence products.
Motilal Oswal cited defence-order execution, new products, backward integration and the proposed Omnia acquisition as potential growth drivers, while warning of execution, margin and debt risks.
- Who
- Solar Industries India Limited and Motilal Oswal Financial Services.
- What
- Motilal Oswal initiated a ‘Buy’ rating on Solar Industries and issued bear-, base- and bull-case price targets.
- When
- The shares moved nearly 2% during Tuesday’s intraday session; the articles also cite a defence order book as of June 2026.
- Where
- Solar Industries is headquartered in Maharashtra, India, and is pursuing an acquisition of South Africa-based Omnia Holdings Limited.
- Why
- The brokerage expects defence-order execution, new defence products, backward integration and the proposed Omnia acquisition to support growth.
Growth case
Risk case
Defence expansion
Growth case
New Pinaka variants, Nagastra, Rudrastra, Bhargavastra, 155 mm ammunition, drones and counter-drone systems could diversify revenue and expand the order pipeline.
Risk case
The benefits depend on successful trials, commissioning, inductions and execution of defence orders; delays could limit growth.
Omnia acquisition
Growth case
The proposed acquisition could provide a larger international platform, improve access to ammonium nitrate and complement Solar Industries’ mining and explosives operations.
Risk case
The deal is being funded through debt and internal accruals, which could increase leverage and pressure margins in the near term.
Valuation outlook
Growth case
Faster order execution, higher realisations and strong projected revenue and profit growth support the ₹23,000 base case and ₹28,800 bull case.
Risk case
Motilal Oswal’s bear case assumes 15% lower profitability and a 10% lower valuation multiple, resulting in a ₹17,400 target.
- Brokerage rating
- Buy
- Base-case target
- ₹23,000 per share
- Bear- and bull-case targets
- ₹17,400 and ₹28,800 per share
- Defence order book
- Around ₹18,000 crore as of June 2026, including approximately ₹11,000 crore in international orders and a ₹6,000 crore Pinaka order
- Proposed acquisition
- Omnia Holdings Limited, a South Africa-based chemicals and explosives company; the deal is valued at around ₹13,000 crore
- Expected FY26–30 growth
- Motilal Oswal expects consolidated revenue and profit after tax to grow at compound annual rates of 43% and 34%, respectively
- FY29 business mix
- The brokerage expects industrial explosives and defence to represent approximately 78% and 22% of the mix, respectively
