Synopsis:-
Premier Explosives Ltd.’s stock surged by 4% after receiving a Rs. 105 crore international defence order; the company’s outlook is further supported by robust FY25 revenue growth and a leading position in the space and defence industries.
A small-cap firm that is engaged in manufacturing explosives and detonators has seen a 4 percent increase in the stock movement today as a result of a new order from an international client.
With the market capitalization of Rs. 2,924 crores, the shares of Premier Explosives Ltd were trading at Rs. 546.95, up 2.61 percent from its previous day’s close price of Rs. 533.50 per equity share.
Work Order
Premier Explosives Ltd. has received an international work order for the manufacturing and supply of defence explosives valued at USD 12.24 million (~Rs. 105 crore), and the contract must be completed within 12 months.
About the Company & Others
A pioneering Indian business, Premier Explosives Ltd. (PEL) focuses on producing industrial explosives and detonators for the mining, infrastructure, defence, and space industries. Additionally, the business offers operation and maintenance (O&M) services for solid propellant plants at the DRDO Solid Fuel Complex in Jagdalpur and ISRO’s Sriharikota Centre.
The company has a strong order book of Rs. 750 crores, which is 1.8 times its FY25 revenue. The Defence and Space segment accounted for 81 percent of its revenue in FY25, with explosives contributing 10 percent and 9 percent from the service segment.
The company has over 850 employees, including over 100 engineers and scientists, and operates seven manufacturing facilities in Telangana, Madhya Pradesh, Maharashtra, and Tamil Nadu. PEL plays a vital role in space and defense programs, as it is supported by its robust technological capabilities and licensed manufacturing rights.
The company’s revenue for FY2024–2025 saw a sharp increase by 53.3 percent year over year from 272 crores to Rs. 417 crores, whereas net profit saw a slight rise of 3.57 percent, from Rs. 28 crores to Rs. 29 crores.
At the moment, the company’s P/E ratio is 103x as compared to its industry P/E of 23.5x, and its ROE and ROCE are 12.2 percent and 16.9 percent, respectively. The D/E ratio of the company stands at 0.18.
Written by Akshay Sanghavi
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