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Shares of Solar Industries rallied as much as 5.4% to their day’s high of Rs 13,251 on the BSE on Wednesday after domestic brokerage firm Elara Capital initiated coverage with a Buy call, citing that the company is ‘unleashing growth juggernauts’.With a target price of Rs 15,450, the brokerage implies an upside potential of 24% from the previous close of Rs 12,430 per share. Analysts said one of the world’s largest commercial explosives companies is entering its next phase of growth across the defence, explosives and mining value chain.The company is evolving from a strong industrial explosives franchise into a vertically integrated defence manufacturer, positioning itself to tap high entry barrier segments such as propellants, warheads and rocket integration, ammunition, military drones and unmanned aerial vehicles, counter-drone systems and anti-tank guided missiles. At the same time, its international non-defence explosives business is also gaining solid traction.The initiation comes at a crucial juncture for defence stocks, amid the ongoing Iran conflict and heightened geopolitical tensions. Here are the three key growth drivers for the company, according to Elara Capital.1.) Defence to fire growth: Revenue from the segment has grown sharply at a CAGR of 82% over FY21-25, increasing its contribution from just 5% of total sales in FY21 to 18% in FY25. This segment is expected to drive the next phase of strong growth, supported by India’s defence capital expenditure of Rs 2.2 lakh crore in FY27, along with rising global conflicts and higher defence spending worldwide.Modern warfare is increasingly centred around four key categories: missiles and rockets, drones, counter-drone systems and ammunition. The company remains the only player in India with a presence across all these segments, positioning it as a key beneficiary. Its in-house capabilities in defence explosives, including warheads, are likely to further accelerate growth. “We expect defence revenue to grow at a CAGR of 66% over FY25-28E, with its share in overall revenue rising to 42% by FY28E,” it said in a note.2.) Going global: Global footprint expansion continues to drive growth in the explosives segment, with the company significantly strengthening its international presence. The company now operates in more than 90 countries and has established seven overseas manufacturing facilities across Zambia, Nigeria, Turkey, South Africa, Indonesia, Tanzania and Ghana. International business already contributes about 38% of total revenue in FY25, highlighting its strong global scale. Looking ahead, further momentum is expected with new operations planned in Kazakhstan, Saudi Arabia and Thailand over the next two years. This expansion is likely to support an exports CAGR of around 19% during FY25-28.3.) Defence Capex plan: The company is stepping up its defence ambitions with a significant capital expenditure plan. The company intends to invest Rs 2,200 crore over FY26-28E to scale up existing capabilities and explore new opportunities in areas such as advanced ammunition and aerospace solutions. This capex will be funded through a mix of internal accruals and debt.The push is supported by a memorandum of understanding with the Government of Maharashtra for a large defence project worth Rs 12,700 crore over the next 10 years. The initiative aims to expand production across key segments, including drones and UAVs, counter-drone systems, energetic materials, next-generation explosives and robotics.India’s defence story is expected to benefit from increasing indigenisation and a widening global ammunition supply gap. Rising geopolitical tensions, particularly in West Asia, along with the Russia-Ukraine conflict and growing risks across maritime, aerial and land domains, have created what can be described as a “security super cycle,” driving record-high global military spending and supporting sustained growth in the defence sector.Against this backdrop, Solar Industries stands out with strong fundamentals. The company reported an EBITDA margin of 26% in FY25, along with a return on capital employed of around 37% and a return on equity of 31%, underscoring its operational strength and efficiency.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

The wounds from the recent bloodbath remain fresh on Dalal Street, even as markets attempt to recover some losses. Market expert Manish Chokhani pointed out that Indian currency, bonds and equities are all cheap now, and this could unleash a buying frenzy."Indian currency, Indian bonds, Indian equities are all cheap now. Just waiting for cheap oil to unleash a buying frenzy? Is it the dark hour before dawn…or the twilight before a dark night?” the Director at Enam Holdings said in a post on X.— chokhani_manish (@chokhani_manish) Both Sensex and Nifty have crashed nearly 9% respectively so far in March, with the sharp selloff wiping out more than Rs 40 lakh crore from the total market capitalization of all companies listed on BSE. This came as the war between Iran and US-Israel triggered a massive rally in oil prices and rattled global markets. Market analysts also highlighted the possible impact of prolonged elevated oil prices on India’s economy.Earlier this month, Moody's Ratings had said that India could face pressure on the rupee, higher inflation and a widening current account deficit in case the Middle East crisis continued to push up energy prices and disrupt supplies. Costly energy imports would weaken the rupee, raise inflation, worsen the current account balance and complicate monetary policy as well as fiscal management if they lead to expanded subsidies to help offset the economic shock."India is a resilient country with strong fundamentals. While we have war raging on, Indians understand the challenges and are willing to work with the government. There will be a shortfall in economic activity in the short run, but we will make up for it in the coming months," said Union Commerce and Industry Minister Piyush Goyal during a fireside chat with CNBC-TV18 earlier this month.Markets heal after bloodbathWhile the war is officially in its fourth week, markets found some much-needed relief after the leaders of the countries involved in the conflict hinted at ceasefire talks and possibility of reopening the Strait of Hormuz, a critical waterway for oil supply.The US President Donald Trump-led administration has sent a 15-point plan and ceasefire proposal to Iran to end the raging war in the Middle East, multiple news agencies reported. The peace plan was shared with Iranian officials on Tuesday via Pakistan, according to the New York Times.Trump, meanwhile, claimed that Iran has agreed that it will "never have a nuclear weapon", even as fighting in the region continued and Tehran publicly denied that any formal negotiations are underway. Trump also claimed victory in the war, stating that US military forces have destroyed Iran’s military capabilities. “Look, their navy's gone, their air force is gone, their communications are gone. Pretty much everything they have is gone," he said. Later, the US President added that Iran had sent what he described as a "very big present" linked to the Strait of Hormuz, calling it a sign that the US was "dealing with the right people".As a result of the rising expectations of the war ending soon, oil prices sharply slipped below the key $100 per barrel mark today. Brent crude futures declined nearly 5% to $99 per barrel on Wednesday morning. Indian stock markets rallied sharply on Wednesday, with Sensex jumping 1,150 points to 75,214, while Nifty 50 gained 370 points to near 23,300 in the morning. The benchmark indices have extended gains for the second consecutive session, erasing all losses recorded during Monday’s crash.The latest decline in oil prices have stoked hopes for the selloff in markets to calm down. Only time will tell whether the recent bloodbath was the "dark hour before dawn" or "the twilight before a dark night", as stated by Chokhani.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Shares of Sagility rallied as much as 8% to their day's high of Rs 40.22 on the BSE on Wednesday after international brokerage firm Nomura initiated coverage on the stock with a Buy call and a target price of Rs 55. The price implies an upside potential of 47.4% from current market levels.Nomura says Sagility stands to be a key beneficiary of the shift toward AI-led transformation in healthcare services. As clients move from transactional engagements to outcome-based models, consolidation is increasingly favouring vertical specialists over horizontal point-solution providers. Clients looking for sustained, multi-year cost efficiencies require end-to-end operational capabilities, which vertical players are better positioned to deliver. Sagility’s deep domain expertise in healthcare strengthens its positioning in this evolving landscape.Importantly, engagement services, which contribute around 30% of revenue, are unlikely to face meaningful disruption. This is due to regulatory constraints and the inherent complexity of healthcare processes. That said, AI is expected to significantly enhance operational efficiency. Tools like Agent Assist, powered by generative AI and analytics, can streamline workflows and improve productivity. However, a large portion of these efficiency gains, estimated at 70-80%, is likely to be passed on to clients, which should keep margins broadly stable over the medium term.Sagility is a technology-enabled, pure-play healthcare solutions and services provider, catering primarily to payers, which account for about 90% of its revenue from US health insurance companies, and to providers, contributing the remaining 10% from hospitals. As of 3QFY26, the company served 81 client groups, with an average client relationship spanning 18 years and a strong retention rate of 95%. It operates a vertically integrated model supported by a distributed workforce, allowing for operational flexibility, while its deep domain expertise in healthcare enables it to deliver effective and high-quality solutions across stakeholders.Nomura expects Sagility to deliver healthy growth, with revenue (in USD terms) and EPS (in INR terms) projected to clock CAGRs of 12% and 20%, respectively, over FY26–28F. Key risks to this outlook include a slowdown in the US healthcare payer industry, reduced outsourcing of operational work, potential disruption to existing business models, and the emergence of new competitors.Interestingly, domestic institutional investors (DIIs) have steadily increased their stake in Sagility over the period. Their shareholding rose from 7.25% in December 2024 to 7.47% in March 2025, before seeing a sharp jump to 14.07% in June 2025. The upward trend continued, with holdings inching up to 14.87% in September 2025 and further to 21.35% by December 2025.Foreign institutional investors (FIIs), on the other hand, also showed a clear increase in participation, though at a more gradual pace initially. Their stake moved from 3.77% in December 2024 to 3.38% in March 2025, followed by a notable rise to 5.98% in June 2025. While there was a slight dip to 5.59% in September 2025, FII holdings surged to 10.25% by December 2025.Sagility's share price has had a rough start to 2026, down 12% in the past month. The share price has tanked 15% in the last six months and nearly 30% since the beginning of the year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

US-based private equity firm Warburg Pincus is in advanced discussions to acquire the formulations business of Mumbai-based Maneesh Pharmaceuticals in a deal valued around ₹1,600–1,800 crore, sources familiar with the matter told ET.Warburg has signed an exclusivity agreement with the company’s promoters and is currently engaged in final negotiations to acquire its non-tuberculosis (non-TB) medicines portfolio.Maneesh Pharmaceuticals is best known for brands such as Smyle Mouth Ulcer Gel, along with key gynaecology products like Doxinate and Clofert. The promoters have been exploring a potential sale for nearly four years, though the company’s anti-TB portfolio has remained a sticking point, with limited interest from prospective buyers in that segment.ET’s mailed queries to Maneesh Prama and Warburg Pincus remained unanswered until the publication of this report.A formal announcement is expected in the next three to four months, industry sources said, adding that discussions with multiple private equity investors have been ongoing for at least two years.Founded in 1985 by the Sapte family, Maneesh Pharma counts Rakesh Jhunjhunwala-led Rare Enterprises as a minority investor.The company, led by managing director Vinay Ramakant Sapte and Maneesh Ramakant Sapte, has built a strong presence in anti-TB treatments and works closely with the World Health Organization.Founders - Vinay Ramakant Sapte and Maneesh Sapte hold about 69% stake, star investor Utpal Sheth holds 16.2%, Rare holds 1.6%, while the rest of the stake is held by others, according to Tracxn data.With a moving annual turnover of ₹504 crore as of February 2026, growing at 6%, the company has a diversified portfolio spanning tuberculosis, gynaecology, antibiotics, gastrointestinal, and pain management therapies. Its flagship brand Doxinate, used to treat morning sickness, generates annual sales of around ₹110 crore, according to PharmaTrac data. Other key brands include Dysmen, Eracid D, MCV, Febrinil, and Clofert. While several products are seeing modest or flat growth, segments such as anti-infectives and respiratory are expanding at a faster pace of about 17%.Industry sources indicate that Warburg Pincus is working on a broader strategy to consolidate two to three India-focused pharmaceutical companies under a single platform. “Scale will play a critical role in building a new organisation, and they are actively scouting for top talent,” a source said.As part of this strategy, Rehan Khan, former India head of Merck & Co. (MSD), is likely to be brought on board to lead the platform. Khan previously drove strong growth for MSD in India, largely on the back of its blockbuster cancer drug Keytruda, which is estimated to have crossed ₹2,500 crore in sales—making it one of the largest pharmaceutical brands in the Indian market.In parallel, Warburg is also close to acquiring Integrace Health from Temasek and True North for around ₹1,200 crore,ET reported in February. Integrace has strengthened its women’s healthcare portfolio through the acquisition of Glenmark Pharmaceuticals’ gynaecology, orthopaedic, and pain management business, and key brands such as Mifegest and Cytolog from Zydus Healthcare.India’s pharmaceutical industry ranks third globally by volume and 14th by value, supplying nearly 20% of global generic drugs and 60% of vaccines. Pharmaceutical exports have grown significantly—from $15.07 billion in FY14 to $27.85 billion in FY24—and are expected to surpass $30 billion in the near future, highlighting the sector’s growing economic and public health importance.