Multibagger defence stock with Rs 17K cr order book falls 21% from record high; price targets, outlook and more
Multibagger stock: The defence stock has clocked multibagger returns of 162% and 1220% in two and five years, respectively.
- Oct 13, 2025,
- Updated Oct 13, 2025 1:59 PM IST
Shares of Solar Industries India Ltd have slipped 21% from their record high in over three months. The defence sector stock, which hit a record high of Rs 17,805 on June 30, 2025 this year was trading at Rs 14,000 in the current session. The defence stock has clocked multibagger returns of 162% and 1220% in two and five years, respectively.
Meanwhile, the stock was trading on a flat note at Rs 14,000 on Monday against the previous close of Rs 14,111 on BSE.
Market cap of the explosives firm stood at Rs 1.26 lakh crore. Total 4151 shares of the firm changed hands amounting to a turnover of Rs 5.81 crore on BSE. The stock had a beta of 0.9 in the last one year, indicating low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 49.5, signaling the stock is trading neither in the overbought nor in the oversold zone.
Solar Industries India shares are trading lower than the 5 day, 20 day, 50 day, 100 day, 150 day and higher than the 10 day, 200 day moving averages.
Philips Capital has a price target of Rs 15,900 on Solar Industries.
The defence sector's transition from policy-driven to execution-led earnings delivery is evident. Solar Industries is well-positioned to capture future opportunities.
Solar Industries has a robust order book exceeding Rs 17,000 crore, majorly constituting defence sector contracts, which contribute nearly 90% of the total order book.
Phillip Capital said the strong order book and resilient margin are expected to benefit the company amid accelerating reforms. However, the brokerage has a neutral stance on Solar Industries, which indicates a balanced outlook amid the varied performance within the sector.
Goldman Sachs has a price target of Rs 18,215 on the defence sector stock.
"We expect SOIL to see rapid growth in its Defense business, led by capacity build-up in ammunition and energetic material segments, a robust export order book and diversification into high technology areas. SOIL enjoys industry-leading asset turns and cash conversion cycle," said the global brokerage.
"Moreover, its non-defence business insulates its earnings from order risk in the defense industry. We are not concerned that it will post negative free cashflow until FY28 given we expect capex intensity to remain high in the near term. In our view, SOIL’s high valuation multiples are fully supported by its steady earnings growth of 25%+ and RoE in excess of 25% in FY25-28E, added Goldman Sachs.
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.
Shares of Solar Industries India Ltd have slipped 21% from their record high in over three months. The defence sector stock, which hit a record high of Rs 17,805 on June 30, 2025 this year was trading at Rs 14,000 in the current session. The defence stock has clocked multibagger returns of 162% and 1220% in two and five years, respectively.
Meanwhile, the stock was trading on a flat note at Rs 14,000 on Monday against the previous close of Rs 14,111 on BSE.
Market cap of the explosives firm stood at Rs 1.26 lakh crore. Total 4151 shares of the firm changed hands amounting to a turnover of Rs 5.81 crore on BSE. The stock had a beta of 0.9 in the last one year, indicating low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 49.5, signaling the stock is trading neither in the overbought nor in the oversold zone.
Solar Industries India shares are trading lower than the 5 day, 20 day, 50 day, 100 day, 150 day and higher than the 10 day, 200 day moving averages.
Philips Capital has a price target of Rs 15,900 on Solar Industries.
The defence sector's transition from policy-driven to execution-led earnings delivery is evident. Solar Industries is well-positioned to capture future opportunities.
Solar Industries has a robust order book exceeding Rs 17,000 crore, majorly constituting defence sector contracts, which contribute nearly 90% of the total order book.
Phillip Capital said the strong order book and resilient margin are expected to benefit the company amid accelerating reforms. However, the brokerage has a neutral stance on Solar Industries, which indicates a balanced outlook amid the varied performance within the sector.
Goldman Sachs has a price target of Rs 18,215 on the defence sector stock.
"We expect SOIL to see rapid growth in its Defense business, led by capacity build-up in ammunition and energetic material segments, a robust export order book and diversification into high technology areas. SOIL enjoys industry-leading asset turns and cash conversion cycle," said the global brokerage.
"Moreover, its non-defence business insulates its earnings from order risk in the defense industry. We are not concerned that it will post negative free cashflow until FY28 given we expect capex intensity to remain high in the near term. In our view, SOIL’s high valuation multiples are fully supported by its steady earnings growth of 25%+ and RoE in excess of 25% in FY25-28E, added Goldman Sachs.
Solar Industries is an India-based manufacturer of industrial explosives for the mining and infrastructure sector. The company offers industrial explosives and defence products.