The shares of the prominent missile manufacturer fell up to 6 percent from its intraday low after a fire accident occurred at the company’s factory situated at Peddakandukur village.
With a market capitalization of Rs 2,774.62 crore, the shares of Premier Explosives Ltd were trading at Rs 516.10 per share, decreasing around 6 percent as compared to the previous closing price of Rs 551.00 apiece.
Reason for rise
The shares of the company have seen positive movement after a fire accident occurred at the Premier Explosives factory situated in Peddakandukur village. The fire has resulted in damage to buildings and equipment in one of the pyro-technique manufacturing facilities. The incident resulted in the loss of life of one person and severe injuries to one person, who was shifted to a hospital in Hyderabad for treatment.
Financial performance
Examining the company’s financial performance, revenue jumped by 22 percent from Rs 78.42 crore in Q2FY24 to Rs 94.60 crore in Q2FY25. During the same duration, net profit decreased by 33 percent from Rs 11.61 crore to Rs 8.39 crore.
Order Book and Execution
The company’s order book is ₹827 Crores, with ₹727 Crores (88%) from defense orders. It has executed ₹150 Crores of a ₹630 Crores order for chaffs and flares, expected to complete by July 2025, maintaining ₹800-900 Crores in orders ahead.
Operational Insights
The company is executing orders for Bharat Dynamics and the Ministry of Defense, with projects in various stages. It has begun constructing a larger RDX and HMX plant, set for completion next fiscal year’s first quarter, alongside a phased defense explosives plant in Odisha.
New Products and Developments
Premier Explosives, the only Indian company qualified to manufacture countermeasures, exports fully assembled rocket motors and RDX/HMX. It developed 40mm HEAP and HEDP ammunition for UBGL and HBGL, aiming to secure RFPs from paramilitary forces and the Indian Army, boosting its commercial explosives division.
Future Outlook
The company is optimistic about growth in defense and aerospace, targeting domestic and export markets. It expects revenue of ₹450-500 Crores this financial year, with 15%-20% growth next year, driven by local manufacturing under Atmanirbhar Bharat to reduce import dependency.
Company Profile
Premier Explosives Limited specializes in the production of industrial explosives and detonators. The company provides operation and maintenance (O&M) services for solid propellant plants at ISRO’s Sriharikota Centre and the Solid Fuel Complex in Jagdalpur, both under DRDO.
Written by:- Abhishek Singh
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