Alpha | Solar Industries India Ltd. – Equity Research Desk

July 15, 2022 . Equities Desk

Solar Industries India Ltd. – Explosive Stock

Established in 1995, Solar Industries India Ltd. (SIL) is the largest manufacturer of industrial explosives and explosive initiating systems in India and has the world’s largest manufacturing facility for packaged explosives. The company has more than 25 years of excellence in the field of Explosives.

With a licensed explosives capacity of over 300,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 65 countries around the world with 34 manufacturing facilities worldwide.

Economic Explosives, a 100% subsidiary, manufactures detonators. Apart from India, the company has a global manufacturing presence in 6 countries namely Nigeria, Zambia, South Africa, Turkey, Ghana, and Australia.


SIL has been one of the consistent compounders in the Indian explosives’ basket. Its earnings grew at 16% CAGR during FY12-22 and the momentum is expected to continue given the strong inherent growth catalysts of the business moat, leadership position, rising opportunities in defence sector, geographical expansion & higher margin profile. We recommend a BUY rating in the stock with the target price (TP) of Rs.3160, 50x FY24E EPS. 

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