Shares fell nearly 14% on Tuesday after announcing a deal to acquire 100% of Omnia’s outstanding shares for $1.355 billion.
Despite the sharp sell-off, Jeffries and Nuwama advised investors to use the correction as an opportunity to add value to the stock, pointing to potential gains from the acquisition. The deal, Solar Industries’ largest overseas acquisition, aims to expand its global commercial explosives and blasting solutions business, particularly in African mining markets.
The acquisition is expected to be completed in early to mid-2027, subject to customary conditions, including the receipt of competition clearances in the relevant jurisdiction. Following the successful completion of the transaction, Omnia will be delisted from the Johannesburg Stock Exchange and A2X Markets.
Also read | Solar Industries shares fell 14% after acquiring South Africa’s Omnia Holdings for Rs 12,951 crore
Jeffries on Solar Industries share price
Jeffries maintained a ‘buy’ call on Solar Industries shares with a target price of Rs 28,160 per piece, implying an upside of over 46% from the previous closing price of Rs 19,250 per piece. The global brokerage said the large acquisition could reduce the company’s FY28-29 earnings per share by 4-6% and FY30 by 1%, based on forecasts for normalization of growth at Omnia. Defense share is likely to come down to 22-25% by FY30 from 35-40% expected earlier.
However, Jeffries believes the correction provides more opportunity to own a business with the potential for a 30% CAGR in earnings per share and a return on equity of over 25%, even with acquisitions included. Solar Industries’ profits have grown 10-fold over the past decade, driven by gains in global explosives market share, the acquisition of South Africa in 2024 and a foray into defense, the global brokerage noted, adding that management has a good track record of prudently allocating capital and focusing cash flows. 25%+, accordingly, any reduction in rating should be limited. Solar will likely move from a net cash to net debt:consolidation equity company of 1.2x in FY28, but this should quickly decline to 0.5x by FY30 given strong cash flows,” Jeffries said.
Also read | Solar Industries to acquire South African company Omnia for Rs 12,951 crore in biggest global expansion push
Nuwama on Solar Industries share price
Nuvama also has a ‘buy’ call on Solar Industries shares with a target price of Rs 23,435 per piece, implying an upside of around 22% from the stock’s previous closing price. The brokerage said the acquisition will give Solar Industries increased control over the sources of ammonium nitrate it currently procures externally, while expanding its global footprint.
While its defense share falls to 22% (post-deal) from 27% of FY26 revenue, Nuwama views the debt-financed deal as pro-growth and self-financing.
Solar Industries share price
Solar Industries shares are down about 17% for the week and 7% for the month, but are up more than 53% in 2026 overall. Shares are up 27% for the year.
Over the long term, the explosives maker’s stock has delivered explosive returns for shareholders, rising more than 300% in three years and about 850% in five years. The company currently has a market capitalization of around Rs 1.68 lakh crore.
Also read | Solar’s $1.3 billion bet is a turnaround for India’s defense industry
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