Why HDFC Bank Shares Rose 3% and Solar Industries Fell 8% Today Sept 15

HDFC Bank shares gained nearly 3% on Tuesday, September 15, after the bank submitted two candidates to the Reserve Bank of India for the Managing Director and Chief Executive Officer position.

Solar Industries shares fell sharply after its subsidiary signed an agreement to acquire Omnia Holdings for US$1.355 billion, or around Rs 12,951 crore.

HDFC Bank and Solar Industries stock details

Stock	Current price	Market cap	P/E	Book value	Dividend yield	ROCE	ROE
HDFC Bank	Rs 718	Rs 11,07,432 crore	14.0	Rs 390	1.79%	7.02%	13.6%
Solar Industries	Rs 19,755	Rs 1,78,764 crore	89.8	Rs 694	0.05%	38.1%	32.6%

HDFC Bank shares rise

HDFC Bank shares gained nearly 3% after the board submitted two CEO candidates to the RBI in order of preference, along with their proposed remuneration.

The appointments will be subject to RBI approval and are proposed for a three year period.

The board also approved the reappointment of V Srinivasa Rangan and Jimmy Tata as whole time directors for three years. It also approved one additional whole time director position.

HDFC Bank had a market capitalisation of around Rs 11.07 lakh crore and a stock P/E of 14.0. Its ROE stood at 13.6%.

Solar Industries shares fall

Solar Industries shares declined sharply after its subsidiary, Solar SA Investments Proprietary, signed definitive agreements to acquire all outstanding shares of Omnia Holdings for US$1.355 billion, or around Rs 12,951 crore.

Solar Industries operates across industrial explosives and related products, with applications in mining, infrastructure, construction and other sectors.

The company had a market capitalisation of around Rs 1.79 lakh crore and a stock P/E of 89.8. Its ROCE stood at 38.1% and ROE at 32.6%.

KEC International gets new orders

KEC International also remained in focus after securing new orders worth Rs 1,303 crore for transmission and distribution projects in India, the Middle East and the Americas.

With these orders, the company’s year to date order intake crossed Rs 7,600 crore.

What investors should watch

Investors will track RBI approval and management changes at HDFC Bank, while Solar Industries will remain in focus after the large acquisition announcement. The market will also watch how KEC International executes its latest orders.