On the June 4th trading session, the share price of India’s first company to manufacture Explosives and Detonating fuse with Indigenous technology was trading low at Rs. 2,488.35, compared to its previous closing price of Rs. 2,635.35. 

With a market capitalisation of Rs. 2,834 crore, Premier Explosives Limited (PEL) has delivered around 477.8 percent of multibagger returns in one year and nearly 75.2 percent of positive returns in the last six months. 

PEL is the first company in India to manufacture Explosives and Detonating fuse with Indigenous technology, while it is the first in the world to produce Safer and Greener NHN detonators on a commercial scale, and the first Private Company to manufacture Solid Propellants to India’s missile programs. 

Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon! Get the book now!

The company’s strategic roadmap for FY24-25 encompasses various objectives. 

In its vision for FY25, the company aims to maintain its leadership in High Energy Materials for both defence & space applications, and plans to develop low-cost processes and techniques for the production of industrial explosives. 

Further, PIL is committed to enhancing its capacities for missile integration and meeting the full requirements of ISRO’s strap-on motors. 

Lastly, it seeks to expand its market presence by entering into the export market for defence products and high-energy components. 

In FY23-24, the company obtained a License for the production of solid propellant at Katepally Solid Propellant Plant to manufacture Solid Propellant of larger size for ISRO and DRDO. 

The aforementioned greenfield project at Katepally, Hyderabad, is in about 150 acres, while another 100 acres of land is available for further expansion. 

The company’s RDX & HMX Plant is commissioned and started meeting the in-house requirement and domestic market, and is securing the orders for the overseas market. 

PIL is expanding its product portfolio of Missile Programmes for Solid propellant, Rocket motor hardware, Thermal insulations & Hot integration, Warheads, Ammonium Perchlorate, HTPB & CL20, and Pyrogen igniters. 

In terms of financials, the company’s consolidated revenue from operations grew by nearly 66 percent YoY from Rs. 52.32 crore in Q4 FY22-23 to Rs. 86.8 crore in Q4 FY23-24, accompanied by an increase in the net profit of 179.83 percent YoY from Rs. 2.43 crore to Rs. 6.8 crore, during the same period. 

Further, the company’s board approved the proposal for the split of equity shares at a 5:1 ratio and has fixed 21st June as the record date. 

This means that, 1 equity share with a face value of Rs. 10 each of the company would be subdivided into 5 equity shares having a face value of Rs. 2 each. 

Founded in 1980, Premier Explosives Limited is engaged in the manufacture of high energy materials like bulk explosives, packaged explosives, detonators, detonating fuse, solid propellants, pyrogen igniters, pyro devices, etc., having applications in mining, infrastructure, defence, space, homeland security and such other areas. 

The company also operates and maintains solid propellant plants for defence and space establishments. 

Written by Shivani Singh


The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.