This small-cap defence stock engaged in manufacturing defence and aerospace products, supplying explosives, and offering services to key sectors like defence, space, and mining industries, jumped 6 percent securing an order worth Rs. 19 crores for the supply of Defence Explosives.
Stock Price Movement:
With a market capitalization of Rs. 1,812.02 crores, the share of Premier Explosives Limited has reached an intraday high of Rs. 348.35 per equity share, rising nearly around 6.33 percent from its previous day’s close price of Rs. 327.60. Since then, the stock has retreated and is currently trading at Rs. 337.05 per equity share.
What happened:
Premier Explosives Limited has received an export order worth Rs. 18.90 crores for the supply of Defence Explosives. The order is awarded by an international entity and is to be completed within 5 months. This order will contribute to the company’s growth and strengthen its position in the global market.
Future Outlook:
The company expects its revenue for the current financial year to be between Rs. 450-500 crores and anticipates a 15-20 percent growth next year, driven by its focus on local manufacturing under the Atmanirbhar Bharat initiative.
Orderbook:
Premier Explosives Limited has a strong order book of Rs. 739.3 crore as of December 2024, which is approximately 2.7 times its FY24 revenue. Although this is lower than the Rs. 964.7 crore recorded in March 2024. The order book’s segmental breakdown indicates that 81 percent of its business comes from defence, 15 percent from explosives, and 4 percent from services, highlighting its diversified operations.
Manufacturing Facilities:
Premier Explosives Limited operates seven manufacturing facilities across various states in India, including Telangana, Madhya Pradesh, Maharashtra, and Tamil Nadu. These facilities support the company’s production and supply of defence explosives and other related products.
Clientele:
Premier Explosives Limited serves prominent clients in the defence and space sectors, including Bharat Dynamics Limited, Bharat Electronics, ASL, ISRO, and Electronics Corporation of India.
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.
Recent quarter results:
Premier Explosives Limited’s revenue has increased from Rs. 44.56 crore in Q3 FY24 to Rs. 165.92 crore in Q3 FY25, which has grown by 272.35 percent. The net profit has also grown by 450.30 percent from Rs. 1.67 crore in Q3 FY24 to Rs. 9.19 crore in Q3 FY25.
Written By – Nikhil Naik
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