PL Capital initiated coverage on Solar Industries India Ltd (SOIL) with a Buy rating and a target price of Rs 23,124. The valuation reflects a price-to-earnings multiple of 62x estimated September 2028 earnings.
Solar Industries holds an approximate 26% share of the Indian industrial explosives market. The company maintains a significant business relationship with Coal India. Defense revenue is gaining momentum through ammunition, missiles, and loitering munitions.
PL Capital projects a 28% compound annual growth rate for revenue from FY26 to FY29. Adjusted profit after tax is expected to grow at a 30% compound annual rate during the same period. Expanding defense operations and international explosives sales will drive this multi-year growth.