Multibagger defence stock in a downtrend in short term: buy, sell or hold?
The defence stock fell 1.90% to Rs 13,050 against the previous close of Rs 13,303. Market cap of the explosives firm stood at Rs 1.18 lakh crore.
- Dec 3, 2025,
- Updated Dec 3, 2025 12:23 PM IST
Shares of Solar Industries, the industrial explosives maker, have turned weak in the short term. The defence sector stock has lost 22% in six months and fallen 8% in a month. The stock is also weak in terms of moving averages. Solar Industries India shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, 200 day moving averages. The defence products maker has over Rs 17,000 crore order book. The multibagger stock has gained 1,135% in five years and risen 219% in three years. However, the defence stock has slipped 27% from its 52-week high of Rs 17,805 reached on June 30, 2025.
In the current session, Solar Industries shares fell 1.90% to Rs 13,050 against the previous close of Rs 13,303. Market cap of the explosives firm stood at Rs 1.18 lakh crore. Total 1680 shares of the firm changed hands amounting to a turnover of Rs 2.20 crore.
Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities said, "Solar Industries is showing signs of weakness as the stock slips below a crucial support inside a descending triangle pattern that typically hints at bearish continuation. Price action has been consistently meeting selling pressure at lower highs, while the recent breakdown below the horizontal base suggests momentum may tilt further downward. With the stock now trading under key moving averages, sentiment remains subdued. Unless the price reclaims Rs 13,600– Rs 13,800 zone, downside risk could persist. Traders may prefer a cautious approach as Solar Industries navigates this vulnerable technical zone."
Solar Industries' stock is likely to reach the Rs 17,859 mark, according to brokerage Anand Rathi. The brokerage, which has a buy rating, has raised its revenue estimates by 0.2%/ 1.0%/ 9.2% and EPS by 2.9%/4.8%/ 14.2% for FY26/ 27/ 28, respectively. "With an implied 30% upside, we upgrade the stock to BUY from HOLD," said Anand Rathi.
"With major orders expected during FY27-28e, ramp-up of execution and capacity additions underway, defence order backlog at FY28e-end is likely to increase from Rs 196.7bn to Rs 259.6 billion," said Anand Rathi.
KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, "On the daily chart, the stock is trading below its 50-day Moving Average, clearly highlighting a sustained negative trend. Additionally, the stock has broken below its horizontal support zone near Rs 13,260, confirming a downside breakdown and indicating the possibility of further weakness ahead.
On the weekly timeframe, the stock has also breached the lower band of its Bearish Pennant formation, reinforcing the bearish sentiment and suggesting continued pressure in the counter. The weekly RSI remains below the 50 mark, signaling weak momentum and a negative undertone in the stock. Considering the overall technical structure, we expect the stock to witness further downside towards Rs 12,600–11,400, while strong resistance is now placed near Rs 14,200.
Global brokerage Goldman Sachs has fixed a price target of Rs 18,215 as the brokerage said the development reinforces its belief in an increasing total addressable market (TAM) for domestic defence firms.
"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 defence industry. We are not concerned that it will post negative free cash flow 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, the industrial explosives maker, have turned weak in the short term. The defence sector stock has lost 22% in six months and fallen 8% in a month. The stock is also weak in terms of moving averages. Solar Industries India shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, 200 day moving averages. The defence products maker has over Rs 17,000 crore order book. The multibagger stock has gained 1,135% in five years and risen 219% in three years. However, the defence stock has slipped 27% from its 52-week high of Rs 17,805 reached on June 30, 2025.
In the current session, Solar Industries shares fell 1.90% to Rs 13,050 against the previous close of Rs 13,303. Market cap of the explosives firm stood at Rs 1.18 lakh crore. Total 1680 shares of the firm changed hands amounting to a turnover of Rs 2.20 crore.
Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities said, "Solar Industries is showing signs of weakness as the stock slips below a crucial support inside a descending triangle pattern that typically hints at bearish continuation. Price action has been consistently meeting selling pressure at lower highs, while the recent breakdown below the horizontal base suggests momentum may tilt further downward. With the stock now trading under key moving averages, sentiment remains subdued. Unless the price reclaims Rs 13,600– Rs 13,800 zone, downside risk could persist. Traders may prefer a cautious approach as Solar Industries navigates this vulnerable technical zone."
Solar Industries' stock is likely to reach the Rs 17,859 mark, according to brokerage Anand Rathi. The brokerage, which has a buy rating, has raised its revenue estimates by 0.2%/ 1.0%/ 9.2% and EPS by 2.9%/4.8%/ 14.2% for FY26/ 27/ 28, respectively. "With an implied 30% upside, we upgrade the stock to BUY from HOLD," said Anand Rathi.
"With major orders expected during FY27-28e, ramp-up of execution and capacity additions underway, defence order backlog at FY28e-end is likely to increase from Rs 196.7bn to Rs 259.6 billion," said Anand Rathi.
KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, "On the daily chart, the stock is trading below its 50-day Moving Average, clearly highlighting a sustained negative trend. Additionally, the stock has broken below its horizontal support zone near Rs 13,260, confirming a downside breakdown and indicating the possibility of further weakness ahead.
On the weekly timeframe, the stock has also breached the lower band of its Bearish Pennant formation, reinforcing the bearish sentiment and suggesting continued pressure in the counter. The weekly RSI remains below the 50 mark, signaling weak momentum and a negative undertone in the stock. Considering the overall technical structure, we expect the stock to witness further downside towards Rs 12,600–11,400, while strong resistance is now placed near Rs 14,200.
Global brokerage Goldman Sachs has fixed a price target of Rs 18,215 as the brokerage said the development reinforces its belief in an increasing total addressable market (TAM) for domestic defence firms.
"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 defence industry. We are not concerned that it will post negative free cash flow 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.