Why Is CETX Stock Rising Today?

Cemtrex’s subsidiary, Advanced Industrial Services, has acquired Plant Engineering Services.

• Cemtrex expects the deal to be profitable from day 1 and to contribute between $4 million and $5 million to the company’s top line over the next 12 months.
• Plant Engineering Services specializes in repairing, upgrading, and relocating large industrial equipment, including hydraulic and mechanical presses
• PES will operate independently under the company’s unit, with no changes to its brand identity or leadership.

Shares of Cemtrex (CETX) surged on Thursday after the company’s unit acquired an Indiana-based engineering firm that will help it tap automotive and defense customers.

At the time of writing, CETX stock was up 33%.

Contours Of The Deal

The company’s unit, Advanced Industrial Services (AIS), has acquired Plant Engineering Services (PES), which specializes in repairing, upgrading, and relocating large industrial equipment, including hydraulic and mechanical presses.

Cemtrex paid $3.5 million in cash for PES’ assets and would pay an additional $1.5 million if certain milestones are achieved over the next three years.

PES will operate independently under AIS, with no changes to its brand identity or leadership.

How Does The Deal Help Cemtrex?

Cemtrex expects the deal to be profitable from the first day and expects PES to contribute between $4 million and $5 million to the company’s top line in the next 12 months. The acquisition will bring together decades of combined experience in rigging, millwrighting, electrical and mechanical installation, specialized engineering, hydraulics, and automation.

“This acquisition allows us to expand our footprint, capability, and markets served immediately," said Saagar Govil, Chairman and CEO of Cemtrex. "PES brings deep engineering expertise that AIS has never had in-house, and AIS brings the field execution resources that PES has historically sourced externally.”

What Retail Traders Think About CETX

On Stocktwits, retail sentiment toward the stock turned ‘bullish’ from ‘bearish’ over the last 24 hours.

CETX shares have fallen more than 89% so far this year and 98% over the past 12 months, underperforming the benchmark S&P index.

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