Defence stock Solar Industries share price jumped over 6% in intra-day deals on Wednesday, September 30, after the company announced the incorporation of a new subsidiary in the Republic of Botswana.
“…this is to inform that Solar Overseas Mauritius Limited a Wholly Owned Subsidiary Company, of the Company, has incorporated “Solar Explochem Proprietary Limited“ a Subsidiary in Republic of Botswana, on September 29, 2026,” it said in an exchange filing.
Solar Industries shares rose as much as 6.2% to its day’s high of ₹19,820. The stock has opened at ₹19,030 after previously closing at ₹18,650 (on September 29).
Stock performance
The company’s shares had jumped over 60% in 2026 YTD and more than 47% in the past year. The defence stock was at a 15.3% decline from its 52-week high of ₹22,700. Meanwhile, it has hit its 52-week low of ₹11,646 in December 2025.
In near term, it fell over 4% in 1 month but rose 4.5% in 3 months and around 62% in 6 months.In 5 eyars, the stock has given multibagger returns, soaring around 820%.
New subsidiary details
Solar Industries India has incorporated Solar Explochem Proprietary Limited in Botswana through its wholly owned subsidiary, Solar Overseas Mauritius Limited. The new entity was incorporated on September 29, 2026, and will operate in the explosives industry as part of the company’s expansion of business operations. It is a step-down subsidiary of Solar Industries India, with Solar Overseas Mauritius Limited as its holding company.
The Botswana entity has been set up through an initial cash capital subscription of US$325,000, with Solar Industries India and/or its subsidiaries holding 65% shareholding or control. The company said no government or regulatory approvals were applicable for the incorporation.
The Botswana subsidiary’s incorporation comes as Solar Industries continues to expand its international footprint. The filing does not provide details on the specific products or operations that Solar Explochem will undertake in Botswana, nor does it disclose any revenue or profit projections for the new business. The development nevertheless marks an expansion of Solar Industries India’s international corporate presence.
Solar Industries India, along with its subsidiaries, manufactures industrial explosives, initiating systems and high-energy materials for mining and defence applications in India and overseas.
What should investors do?
PL Capital has initiated coverage on Solar Industries India Ltd. (SOIL) with a Buy rating and a target price of ₹23,124 (24% upside potential), valuing the stock at 62x September 2028 estimated earnings and an implied EV/EBITDA of 34x. The stock currently trades at 58.7x FY28 and 48.2x FY29 estimated P/E.
The brokerage expects a multi-year growth cycle, supported by SOIL’s nearly 26% share of India’s industrial explosives market, rising defence revenue from ammunition, loitering munitions and missile systems, and expansion across 10 overseas markets. Its technology portfolio has also broadened through drone platforms including Nagastra, HALE/MALE UAVs, Rudrastra and Bhargavastra.
PL Capital estimates revenue and adjusted PAT to grow at CAGRs of around 28% and 30%, respectively, during FY26-29E. Growth is expected to be driven by the faster-expanding defence business, scaling of international explosives operations and an improving revenue mix.
The brokerage also highlighted SOIL’s established domestic franchise across bulk explosives, packaged explosives and initiating systems. Its domestic operations are expected to benefit from sustained mining activity, particularly in coal and iron ore.
Technical Outlook
Gaurav Garg, Head – Research, Lemonn stated that Solar Industries’ recovery today, from an opening near ₹19,030 to around ₹19,500, looks like value buying rather than a fresh trigger. Investors are stepping back in after a 17% two-day slide on the ₹12,951 crore all-cash Omnia deal, with Jefferies and Nuvama still at Buy. Momentum is repairing, not restored.
“The stock is testing its short-term weekly average near ₹19,670 from below, while the long-term average around ₹17,270, the anchor of the multi-year uptrend, stays intact. Buyers have stepped in around ₹18,500 twice since the deal. Our mid-term view is Hold with an accumulate-on-dips bias. A defence order book of about ₹21,350 crore underwrites earnings. The real debate is whether the market will keep paying 80-plus times earnings for a bigger mining business. A weekly close above ₹20,500 reopens ₹22,700; below ₹17,000, the thesis needs a rethink,” said the expert.
Meanwhile, Jigar S Patel, Senior Manager – Technical Research, Anand Rathi Share and Stock Brokers Limited noted that SOLARIND is currently trading below its 10, 20 and 50-DEMA, indicating that short-term momentum remains under pressure. Hence, fresh buying should be avoided at current levels, and a meaningful reversal will require a decisive move above the key resistance zone of ₹20,400, he added.
“On the downside, ₹18,700 is the major support level to watch. A sustained move above ₹20,400 can improve the technical structure and trigger fresh buying interest, while failure to reclaim this level may keep the stock under consolidation or selling pressure. Traders should therefore remain cautious and wait for confirmation above ₹20,400 before considering fresh positions. For now, ₹18,700 acts as the key support, while ₹20,400 remains the crucial resistance and breakout trigger,” stated the expert.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
