Solar Industries Shares Gain on Report of Potential South Africa Acquisition

Solar Industries shares jump on news of potential South Africa acquisition Shares of Solar Industries jumped on September 3 after a report by CNBC-Awaaz that the company could be close to acquiring a giant global company in South Africa.

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The report noted that the target is an industrial explosives manufacturer that could be announced this week or early next week. Solar Industries shares were up 4.8% at Rs 21,575 per share at around 11:10 am on September 3, following a rise of around 4.5% on the back of the report.

CNBC-Awaaz reports that the corporation is looking into purchasing an industrial explosives company in South Africa. As of the time of publication, Solar Industries had not officially announced any acquisition in South Africa.  

CNBC-Awaaz reported that Solar Industries is evaluating an acquisition in South Africa, though no financial details of the proposed transaction were disclosed. The channel said the company could make an announcement within the next few days or early next week. The report coincided with a move higher in the stock. Solar Industries was quoting at Rs 21,575 at 11:10 am on September 3, up 4.8% from the previous close.

According to CNBC-Awaaz, the company is in talks of buying an industrial explosives business in South Africa. As of writing, there is no official announcement made by the company regarding its acquisition of a business in South Africa.

Details about the potential acquisition were not included in the report, however, it is stated that the deal will likely be announced this week or early next week. The company's quarterly numbers were stronger than those reported a year earlier. Net profit stood at Rs 652.55 crore for the April-June period, while revenue came in at Rs 3,668 crore. In the same quarter last year, the figures were Rs 339 crore and Rs 2,154 crore respectively.

EBITDA rose to Rs 1,035.2 crore from Rs 534.9 crore, and the EBITDA margin widened to 28.1% from 24.8%. Its overall order book stood at Rs 21,350 crore, giving it visibility on the future business. Solar Industries had said that it expects to get sizeable new orders in the coming quarters.

Management remained upbeat on growth in FY27 and said that the company was on track to meet its Rs 14,000 crore growth guidance. Solar Industries has budgeted Rs 2,050 crore as capital expenditure for FY27. Of that amount, around Rs 450 crore had been deployed in the first quarter.