Shares of this small-cap stock under the ‘Defence’ sector jumped approximately 15 percent in Tuesday’s trading session after the company’s Board of Directors are set to meet to consider and approve key decisions, viz, fundraising and sub-division of fully-paid equity shares.
With a market capitalization of Rs 2,089.97 crores, the stocks of Premier Explosives Limited started their trading session on Tuesday at Rs 1,772.95 and currently trade at Rs 1,943.75, gaining around 15 percent compared to the previous closing level of Rs 1,688.65 apiece. In the last five trading sessions, the company’s stock gained nearly 20 percent for its holders.
Such sharp share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that its Board of Directors (BOD) have scheduled a meeting on Friday, 19th April 2024, to consider and approve a couple of key decisions.
The company’s Board will consider and approve the sub-division of fully-paid equity shares and also consider the proposal to raise funds by way of the issue of equity shares or convertible instruments by way of preferential Issue or through any other permissible mode thereof as may be considered subject to the approvals of the members of the company.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, indicated a dip in numbers with the former reducing from Rs 78.42 crores during Q2FY24 to Rs 44.56 crores during Q3FY24, and the latter, keeping the timeframe the same, shifted down from Rs 11.61 crores to Rs 1.67 crores.
Keeping a purview of the last one year, the company’s stock has proven to deliver multibagger returns of around 370 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 4.70 lakhs.
According to the latest presentations, the company’s order book value stands at 1,027 crores with the defence segment being the major contributor with 87 percent share and the remaining 13 percent contributed by the explosives and other segments.
Premier Explosives Limited is engaged in the business of high-energy materials including defence as well as commercial explosives used in the infra & mining sectors. The company’s product portfolio includes packaged explosives detonators, bulk explosives, solid propellants, and pyrogen igniters among others.
Written by Amit Madnani
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