Solar Industries Stock: Goldman Sachs has raised its target price on Solar Industries India to Rs 26,550 from Rs 20,180, while retaining its ‘Buy' rating, as the proposed acquisition of Omnia could strengthen the company's value chain in Africa, open up new geographies and add products through diversification into agriculture.
Goldman Sachs believes the proposed Omnia acquisition has strategic merit and could be earnings accretive, with potential accretion to Solar Industries' FY28E EPS estimated at 11–25%.
The brokerage said the biggest positive is the company's balanced growth focus, with the transaction potentially strengthening its footprint across key regions while expanding its addressable product portfolio.
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Omnia Deal Could Add More Than Just Earnings
According to Goldman Sachs, the proposed Omnia acquisition could strengthen Solar Industries' value chain in Africa while opening new geographies for the company.
The transaction could also bring new products through diversification into the agriculture segment, adding another dimension to Solar Industries' growth strategy.
Goldman estimates potential FY28E EPS accretion of 11–25% from the deal, making the proposed acquisition a key part of its upgraded valuation.
Strong Q1 Adds To The Growth Story
Solar Industries entered FY27 with a sharp improvement in its financial performance. Consolidated net profit jumped 92.6% year-on-year to Rs 653 crore in the June quarter, compared with Rs 339 crore a year earlier.
Revenue rose 70.3% to Rs 3,668 crore, while EBITDA increased 90.1% to Rs 1,015 crore. EBITDA margin also expanded to 27.7% from 24.8%.
The stock has gained 2.5% in the past five days, 11.7% over one month, 58.3% in six months and 83% over the past year.
Goldman Sachs Remains Bullish
For Goldman Sachs, the Omnia transaction is not simply about adding earnings. It fits into what the brokerage sees as Solar Industries' broader balanced approach to growth — combining geographic expansion with a wider product portfolio.
With the proposed acquisition potentially adding 11–25% to FY28E EPS, Goldman has raised its target price by nearly 32% to Rs 26,550, while maintaining its Buy recommendation.
The proposed deal, therefore, could give Solar Industries another growth lever — not just by expanding where it operates, but also by broadening what it sells.
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