{
  "id": 8040037,
  "title": "Broker’s call: Solar Industries (Accumulate)",
  "url": "https://urgent.news/2026/09/17/brokers-call-solar-industries-accumulate",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T14:31:56.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/brokers-call-solar-industries-accumulate/article71477074.ece"
  },
  "original_language": "en",
  "account": "Solar Industries has agreed to purchase South African-based firm Omnia Holdings in a cash deal amounting to ₹13,000 crore. This acquisition will allow Solar Industries to double its revenue by the end of FY28E following the merger. However, the deal will lead to dilution in margins and return on equity (ROE), as Omnia holds an EBITDA margin of 11% in FY26 and an ROE of approximately 13%. Management anticipates a combined revenue of ₹32,000 crore (Omnia's revenue between ₹14,000-15,000 crore) and an EBITDA of ₹6,500 crore, indicating a combined margin of 20%, which is lower than Solar Industries' margin of 27%. The acquisition will be financed through internal accruals and debt, resulting in an extra debt of ₹11,000 crore and an annual interest cost of ₹800-900 crore. It is anticipated that Omnia's margins will gradually improve over time due to synergies from backward and forward integration, as seen in other AU subsidiaries. Therefore, the rating has been revised to \"Accumulate,\" and the target price has been lowered to ₹19,970 as the company now employs a Stable Operating Profitability Rate (SOTP) method. The new P/E ratio for Solar Industries is calculated at 50x (down from 65x) based on the lower contribution of the defense sector to overall sales and revised return ratios, resulting from including Omnia in the calculations. The frequency and reduction of debt will be the primary factors to monitor for any potential reevaluation.",
  "summary": "Elara Securities",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}