Shares of a small-cap company specialising in the manufacturing of industrial explosives and detonators surged nearly 3 percent on Tuesday, after the Telangana Pollution Control Board revoked the closure of its Katepally factory.
With a market cap of Rs. 3,138.6 crores, the shares of Premier Explosives Limited closed in the green at Rs. 583.8 on BSE, up by nearly 2 percent, as against its previous closing price of Rs. 571.8. The stock has delivered positive returns of around 11 percent in one year, and has gained by over 42 percent in the last one month.
What’s the News
According to the latest regulatory filings submitted to the stock exchanges, Premier Explosives Limited announced that it has received an order from Telangana Pollution Control Board revoking the earlier Closure Order dated 7th May 2025, for a period of three months for the company’s Katepally factory, on payment of environmental compensation of Rs. 6.75 lakhs. The company stated that it will comply with all the conditions mentioned in the order and shall resume production from the said factory at the earliest.
Earlier on 30th April, Premier Explosives had reported a fire and explosion that occurred at around 04.55 p.m. on 29th April in the propellant mixing building at the same Katepally factory. It also informed the loss of three lives, while the other six people who sustained injuries were taken to the hospital for medical treatment. The incident caused damage to the building and machinery involved. The affected assets were appropriately insured.
Financials and More
Premier Explosives reported a decrease in revenue from operations, experiencing a year-on-year decline of nearly 15 percent, from Rs. 86.8 crores in Q4 FY24 to Rs. 74.08 crores in Q4 FY25. Similarly, its net profit fell during the same period from Rs. 6.8 crores to Rs. 3.8 crores, representing a decline of nearly 44 percent YoY.
The company’s order book stood at Rs. 750 crores in FY25, roughly 1.8 times its annual revenue for the year. Of this, 81 percent originated from the Defence segment, 10 percent from Explosives, and the remaining 9 percent from Services.
Written by Shivani Singh
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