This small-cap Defence Stock, engaged in manufacturing high-energy materials, explosives, detonators, propellants, and defence products for sectors like defence, space, mining, and infrastructure, jumped 2 percent after receiving an order worth Rs. 7 crore from an international client to manufacture and supply of defence products.
With a market capitalization of Rs. 3,186.43 crores, the share of Premier Explosives Limited has reached an intraday high of Rs. 599.40 per equity share, rising nearly 2.11 percent from its previous day’s close price of Rs. 587. Since then, the stock has retreated and is currently trading at Rs. 592.70 per equity share.
Premier Explosives Limited has received a purchase order from an international client for the manufacture and supply of defence products. The total value of the order is USD 762,860.08, approximately Rs. 6.62 crores. This order will be executed within a period of six months. The order marks another step in Premier’s continued growth in the global defence manufacturing sector.
The company’s order book decreased from Rs. 964.7 crore in March 2024 to Rs. 750 crore in March 2025, which is 1.8x the FY25 revenue. The order breakdown for March 2025 shows that 81 percent of the order book is from Defence, 10 percent from Explosives, and 9 percent from Services, indicating a strong emphasis on the Defence segment.
Premier Explosives Limited was founded in 1980 by Dr. A.N. Gupta and specializes in the production of high-energy materials and allied products. The company serves various sectors, including mining, infrastructure, defence, space, and homeland security.
The company manufactures bulk and packaged explosives, detonators, and fuses. It also produces solid propellants used in missiles like Akash and Astra, along with pyro devices such as chaff, infrared flares, and explosive bolts. Additionally, the company operates and maintains solid propellant plants for key organisations like ISRO and DRDO.
Premier Explosives Limited collaborates with major clients in the defence and space sectors, including Bharat Dynamics Limited, Bharat Electronics, Advanced Systems Laboratory (ASL), ISRO, and the Electronics Corporation of India.
Premier Explosives Limited operates seven manufacturing facilities across various states, including Telangana, Madhya Pradesh, Maharashtra, and Tamil Nadu. These strategically located units support the company in producing and supplying defence explosives and related products efficiently.
Coming into financial highlights, Premier Explosives Limited’s revenue has decreased from Rs. 86.79 crore in Q4 FY24 to Rs. 74.08 crore in Q4 FY25, which is a drop of 14.64 percent. The net profit has decreased by 44.69 percent from Rs. 6.78 crore in Q4 FY24 to Rs. 3.75 crore in Q4 FY25.
Premier Explosives Limited’s revenue and net profit have grown at a CAGR of 27.97 percent and 79.67 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 16.9 percent and 12.2 percent, respectively. Premier Explosives Limited has an earnings per share (EPS) of Rs. 5.31, and its debt-to-equity ratio is 0.18x.
Written By – Nikhil Naik
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