Solar Industries shares plunge 17% in 2 days. Why Jefferies, Nuvama still see up to 46% upside
Solar Industries shares have plunged over 17% in two sessions following the Rs 12,951 crore acquisition of South Africa’s Omnia Holdings. Despite the sharp correction, Jefferies and Nuvama retain Buy ratings, citing the company’s earnings growth potential, strong cash flows and strategic benefits from the acquisition and global expansion.
Solar Industries shares experienced a 17% decline over two days following the acquisition of South Africa's Omnia Holdings for Rs 12,951 crore. Jefferies and Nuvama, two investment firms, maintain a bullish outlook on the stock, with target prices suggesting up to 46% upside potential. Jefferies anticipates a potential dilution of 4-6% in FY28-29 EPS and 1% in FY30 EPS due to the acquisition, but remains optimistic about Solar Industries' long-term growth prospects.
The acquisition is expected to expand Solar Industries' global commercial explosives and blasting solutions business, particularly in Africa's mining markets.
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