Indian defence stocks have been rising over the past 18 months or so, driven by powerful structural growth engines alongside escalating global geopolitical tensions.
Rising global instability, including ongoing conflicts in Ukraine and West Asia, as well as heightened regional security concerns, has prompted nations worldwide to accelerate military preparedness and expand their defence budgets.
At home, record domestic budget allocations and positive indigenisation lists have ensured that military hardware is manufactured locally. Meanwhile, mega clearances from bodies like the Defence Acquisition Council have helped build multi-year order books for domestic players.
Solar Industries is one stock that has attracted significant attention, hitting a new 52-week high on 8 September.
Today, we examine the company's long-term prospects. Before diving in, here is a brief overview of the company.