Shares of Solar Industries surged over 5% on Tuesday following reports that the Cabinet Committee on Security (CCS) has cleared a major procurement deal worth ₹10,000 crore for the Pinaka rocket launcher system. The project will be jointly handled by Solar Industries and Munitions India Limited (MIL), a former Ordnance Factory Board entity, according to sources from ANI.
The procurement includes ₹5,700 crore for high-explosive ammunition and ₹4,500 crore for area denial munitions. The induction of the Pinaka rocket system is expected to enhance the Indian Army’s artillery firepower, particularly in high-altitude regions along India’s northern borders.
Solar Industries, a key player in explosives and ammunition manufacturing, is expected to benefit significantly from this deal. The contract aligns with the government’s “Make in India” initiative, focusing on defense self-reliance and reducing dependence on imported weapon systems.
The Pinaka system, developed by the Armament Research and Development Establishment (ARDE) in collaboration with other defense research labs, is fully indigenous and has gained international attention, with countries like France and Armenia expressing interest. Known for its precision in high-altitude strikes, the system is regarded as one of the most advanced artillery rocket systems globally.
Stock Performance:
Shares of Solar Industries opened at ₹9,782.70 and reached an intraday high of ₹10,299. The stock closed at ₹10,100, reflecting a 5.55% gain from its previous close of ₹9,568.55. The company’s market capitalization currently stands at ₹912.54 billion, with a P/E ratio of 90.12.
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