This intriguing development came after the company received substantial defence orders, propelling its shares to an upper circuit limit.
In a remarkable turn of events, the NSE benchmark Nifty50 soared to new heights before experiencing a slight retreat. However, one stock emerged from the fray with explosive gains, quite literally. Premier Explosives Ltd, a company specializing in high-energy materials, witnessed an astonishing surge in its stock price. This intriguing development came after the company received substantial defence orders, propelling its shares to an upper circuit limit.
Premier Explosives Ltd opened the day at Rs 499.95, briefly dipped to Rs 492.15, and then embarked on an unstoppable upward trajectory. The stock continued to surge and eventually hit the upper circuit limit of 20 percent. Accompanying this impressive rise was a significant spike in the total traded volume, with over three lakh shares exchanging hands throughout the day.
Premier Explosives Ltd is primarily engaged in the manufacturing and sale of high-energy materials. Its extensive product range includes bulk explosives, packaged explosives, and initiating systems. These products find application in industries such as mining, infrastructure, and construction. The company has also diversified into manufacturing propellants for missiles, rockets, and strap-on motors for satellite launch vehicles. In addition, Premier Explosives Ltd offers a wide array of defence and space products, including chaff, IR flares, explosive bolts, pyro devices, smoke markers, cable cutters, tear gas grenades, and pyrogen igniters.
The surge in Premier Explosives Ltd’s stock price can be directly attributed to the recent defence orders it received from the Ministry of Defence, Government of Republic of India. The company secured an order worth Rs 292.11 crore (including GST) for the supply of chaffs to the Ministry of Defence and the Indian Air Force. Additionally, it obtained an order worth Rs 260.15 crore (including GST) for the supply of flares. These substantial orders underscore the company’s growing prominence in the defence sector.
Over the past week, Premier Explosives Ltd’s stock has witnessed a remarkable 37 per cent surge, while it has soared an astonishing 93.5 per cent over the past year. Starting FY23 with an order book of Rs. 389 Crore, the company experienced a significant inflow of orders amounting to nearly Rs. 340 Crores during the year. As of March 31, 2023, the outstanding order book stood at approximately Rs. 521 Crores, equivalent to 2.58 times the company’s FY23 revenues.
Premier Explosives Ltd has not only caught investors’ attention with its explosive stock performance but also with its specialized products and strong presence in the defence industry. The recent defence orders received from the Ministry of Defence have further bolstered the company’s prospects. As it continues to ride the momentum of higher highs and higher lows, Premier Explosives Ltd appears to be in a prime position for continued growth and success in the future.