The shares of one of the leading Defence stocks specializing in manufacturing industrial explosives and ammunition jumped up to 8 percent upon securing a major procurement deal worth Rs 10,000 crore for the Pinaka rocket launcher system.
Price action
With a market capitalization of 86,648 crores on Thursday, the shares of Solar Industries India Ltd jumped 7.5 percent making a high of Rs 10,288.25 compared to its previous closing price of Rs 9,575.45.
What Happened
Solar Industries India Ltd specializing in manufacturing industrial explosives and ammunition has secured a major procurement deal for the Pinika order.
The Cabinet Committee on Security (CCS) has cleared a major procurement deal worth Rs 10,000 crore for the Pinaka rocket launcher system, assigning Solar Industries and Munitions India Limited (MIL) as the manufacturers as per the sources.
The Pinaka rocket systems will improve the Indian Army’s artillery strength, particularly in high-altitude areas near the northern borders. Army Chief General Upendra Dwivedi mentioned earlier this month that the Cabinet is expected to approve the contract soon. The deal includes Rs 5,700 crore for high-explosive ammunition and Rs 4,500 crore for area denial munitions.
This development also aligns with the government’s initiative to promote self-reliance in defense manufacturing and reduce dependence on the import of weapon systems.
Pinaka weapon system is a fully indigenous weapon system designed and developed by the Armament Research and Development Establishment (ARDE) it can launch precise attacks from a great altitude making it one of the most advanced artillery rocket systems in the world.
About the Company
Solar Industries India Ltd is a leading manufacturer of industrial explosives, initiating systems, and chemicals. The company specializes in providing high-quality solutions for the mining, construction, and defence sectors. Established in 1995, Solar Industries has built a strong presence globally, exporting its products to over 50 countries.
Financials
The company’s revenue rose by 28.8 percent from Rs 1,355.18 crore to Rs 1,746.28 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs. 200.14 crore to Rs. 285.88 crore during the same period.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
