The shares of Premier Explosives Ltd experienced a sharp rise today, hitting the upper circuit. It began the day at Rs 706.50, 20% up compared to the previous day’s closing price of Rs 588.75. The stock surged by 20% during the intraday session with significant volume.
The stock’s 52-week highs and lows stand at Rs 706.50 and Rs 291.55, respectively. With a market capitalisation of just Rs 759.65 Crore, the stock has displayed positive performance in recent times, delivering a 67% return over the last month and an impressive 133% return over the past year. Furthermore, it has given a multibagger return of 422% to investors in the last three years.
Below is the observation of trading volumes both in BSE and NSE.
According to the latest exchange filing by the company on July 11, 2023, they have secured multiple orders from the Ministry of Defence and the Indian Air Force to supply Chaffs and Flares respectively. These orders have a total value of Rs 552.26 Crore (including GST).
On July 6, the company provided an update through an exchange filing, stating that they have received an order worth Rs 76.78 Crore from the Ministry of Defence, Air HQ (Vayu Bhawan), the order is for the supply of 50 MM MTV flares. Additionally, on the same day, the company announced another order worth Rs 9.73 Crore from Bharat Dynamics Ltd. This order is for the supply of Booster Grains.
The Board of Directors of the company has scheduled a meeting on July 19th, 2023 to discuss and approve the Unaudited Financial Results of the company for the quarter ending on June quarter.
If we check the company’s financials, in FY23 annual revenue experienced a modest increase of 1.46% YoY, rising from Rs 199 Crore to Rs 202 Crore. The operating profit of the company stands at Rs 26 Crore, accompanied by an operating profit margin of 13%. The company’s margins have grown from 4% in FY2021 to 13% in FY23. Furthermore, the net profit of the company amounts to Rs 7 Crore. The company’s return on capital employed (ROCE) and return on equity (ROE) are in single digits at 6.57% and 3.47%, respectively.
Regarding ownership, the promoters of the company possess 41.33% of the company’s shares. Whereas stakes held by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) are 0.17% and 3.42%, respectively. The remaining portion, which accounts for 55.08%, is owned by public investors.
Premier Explosives Ltd is an Indian company that specializes in the manufacturing of high-energy materials and related products for industries such as defence, space, mining, and infrastructure. The company operates in two geographical segments: India and the Rest of the World.
The primary focus of the company is on the development and production of solid propellants used in rockets and strap-on motors for satellite launch vehicles. However, the company also offers a wide range of additional products such as chaff, infrared (IR) flares, explosive bolts, pyro devices, smoke markers, cable cutters, tear gas grenades, and pyrogen igniters for defence and space applications.
It operates multiple units dedicated to defence and explosive manufacturing. One unit is located in Peddakundukur, and the second unit is situated in Katepally, both of which are located in the state of Telangana. Additionally, the company has six bulk explosive manufacturing locations spread across Madhya Pradesh, Maharashtra, Telangana, and Tamil Nadu.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.