The shares of this company plunged over 6 percent after it received a closure notice from the Telangana government. In this article, we will look at the notice and what it means for the company.
With a market capitalisation of Rs 2,365 crores, the shares of Premier Explosives Ltd are currently trading at Rs 440 per share, down by 51.6 percent from its 52-week high of Rs 908.80 per share. Over the last five years, the stock has delivered a multibagger return of 2,812.64 percent.
The reason behind this fall
The shares of Premier Explosives took a hit of nearly 6 percent after the Telangana government issued a factory closure notice. The Telangana Pollution Control Board directed to shutdown of the company’s Katepally plant immediately following a fire and explosion on April 29, 2025, that resulted in three deaths and six injuries. The firm is negotiating with the authorities to have its operational license restored.
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Financial Highlights
The company reported a revenue growth of 272.42 percent to Rs 165.92 crores in Q3 FY25, up from Rs 44.56 crores in Q3 FY24. Correspondingly, its net profit witnessed a strong surge, with PAT increasing by 437 percent to Rs 9.23 crores in Q3 FY25 compared to Rs 1.72 crores in the same quarter last year.
The company has delivered an ROE and ROCE of 13.54 percent and 17.96 percent respectively and is currently trading at a P/E of 75.50x as compared to its industry average of 29.05x.
About the company
Premier Explosives Limited, founded in 1980 and headquartered in Secunderabad, produces and markets high-energy products and defence products in India and overseas. Its products range from explosives, propellants, warheads, detonators, flares, and rocket motors to cater to industries such as mining, defense, space, and homeland security. The company also has solid propellant plants and markets its products through agents and dealers.
Written by Satyajeet Mukherjee
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