Shares of Sona BLW Precision Forgings Ltd Sona Comstar experienced a significant rally, climbing over 10% in Thursday’s trading session. This surge follows the company’s announcement regarding its acquisition of the Railways Equipment Division from Escorts Kubota for ₹1,600 crore. Analysts view this acquisition as EPS-accretive, indicating that it adds value to earnings per share, which has positively influenced investor sentiment.
Sona BLW Precision Shares 2024
Conversely, shares of Escorts Kubota plummeted nearly 10% after the announcement. The company aims to align its operations with the vision of Global Kubota and exit non-core businesses, leading to a revision of earnings estimates for the future. Despite this setback, analysts maintain a positive outlook for Escorts Kubota’s medium-term prospects, bolstered by potential support from Global Kubota in terms of technology and export opportunities.