DAM Capital has maintained its “buy” rating on the stock with a target price of ₹22,000 per share. This is an upside of 14.3% from its previous closing price.
It highlighted that Solar Industries’ acquisition of South Africa-based Omnia Holdings for ₹12,951 crore, is valued at around 7.9x enterprise value (EV) / EBITDA and will be largely funded via internal accruals and debt.
The transaction is expected to close by mid 2027 and strengthen Solar Industries’ global commercial explosives and mining presence.
The significant operational and cost synergies are expected with Solar Industries’ existing African operations, DAM Capital said.
In an interaction with CNBC-TV18 on Tuesday, the management of Solar Industries guided for revenue of ₹31,500 to ₹32,000 crore revenue, ₹6,800 to ₹7,000 crore EBITDA, ₹6,200 crore EBIT and profit before tax of more than ₹5,000 crore for FY28.
DAM Capital said that the acquisition is transformational, but agriculture and chemicals segment remains a key earnings monitorable.
It said the agriculture and chemical business continues to hold strategic importance despite their impact on the overall earnings profile of the company.Solar Industries India’s managing director and CEO Manish Nuval on Tuesday also told CNBC-TV18 that the deal with Omnia Holdings would be financed via internal accruals and long-term debt with no plans for equity dilution.
Of the 19 analysts who have coverage on the Solar Industries stock, 15 have a “buy” rating, three have a “hold” rating and one has a “sell” rating.
Shares of Solar Industries declined 4% to hit an intraday low of ₹18,480 apiece on Wednesday. Despite the two-day fall, the stock is still up over 50% so far in 2026.
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