This Defence stock is engaged in the manufacturing of industrial explosives and detonators, skyrocketed 12 percent after the company reported strong December quarterly results with a 436.33 percent YOY increase in net profit and received an order worth Rs. 20 crores for the design and development of Rocket Motors
Stock Price Movement:
In Thursday’s trading session, Premier Explosives Limited‘s share reached an intraday high of Rs. 414.10 per equity share, rising 11.51 percent from its previous day’s close price of Rs. 371.35. The stock opened at Rs. 400.10 and is currently trading at Rs. 403.35. The market capitalization now stands at approximately Rs. 2,168.46 crore.
What Happened:
Premier Explosives Limited has received an export order worth Rs. 20.36 crores for the design and development of Rocket Motors, this will be executed over a period of two years. This is a significant achievement for the company as it strengthens its presence in the global defense sector.
Q3 FY25 Result Walkthrough:
Coming into the quarterly results of Premier Explosives Limited, the company’s consolidated revenue from operations increased by 272.35 percent YOY, from Rs. 44.56 crore in Q3 FY24 to Rs. 165.92 crore in Q3 FY25, and grew by 75.39 percent QoQ from Rs. 94.60 crore in Q2 FY25.
In Q3 FY25, Premier Explosives Limited’s consolidated net profit increased by 436.63 percent YOY, reaching Rs. 9.23 crore compared to Rs. 1.72 crore during the same period last year. As compared to Q3 FY25, the net profit has increased by 9.49 percent, from Rs. 8.43 crore in Q2 FY25.
The basic earnings per share increased by 434.38 percent and stood at Rs 1.71 as against Rs 0.32 recorded in the same quarter in the previous year 2024.
Order Book:
Premier Explosives Limited’s order book shows a decline from Rs. 964.7 crore in March 24 to Rs. 827 crore in September 24. The order book is primarily divided among sectors, with Defence accounting for 88 percent, while services and explosives make up 9 percent and 3 percent, respectively.
Product and service offerings:
The company manufactures bulk and packaged explosives, detonators, and fuses. It produces solid propellants for missiles like Akash and Astra, along with pyro devices such as chaff, IR flares, and explosive bolts. The company also operates and maintains solid propellant plants for ISRO and DRDO.
Written By – Nikhil Naik
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