Shares of the first Indian company in the world to commercially create safer and greener NHN detonators, as well as a pioneer in producing solid propellants and the manufacturer of popular missiles such as Brahmos and Agni, rose by 7%.
Premier Explosives Limited’s stock grew after receiving orders from the Ministry of Defence and Bharat Dynamics Limited.
As per exchange filings, The company received an order from the Ministry of Defence, Air HQ, and Bharat Dynamics Limited to supply 50 MM MTV and Booster Grains for orders worth Rs 76.78 Crores and Rs 9.73 Crores, respectively, with orders to be completed within twelve (12) months.
At 12:12 pm, the shares of Premier Explosives Limited quoted Rs 464.10, up 5.15 percent on NSE. In the last year, the company’s share price increased from Rs 298.60 to current levels, giving returns of 55.39 percent.
Premier Explosives Limited is the first Indian firm to produce explosives and detonating fuse using indigenous technology, and it is involved in the production of industrial explosives and detonators. Under the direction of DRDO, it also provides operation and maintenance (O&M) services for solid propellant facilities. And the only Indian firm that exports fully developed rocket motors.
The company’s order book now stands at Rs. 521 crore, which is about 2.58 times its FY23 revenue. The company derives 58% of its income from defence sector orders, 25% from service, and 17% from explosives.
According to the company’s financial statements, operating revenue increased by 40% to Rs 52 crore in Q4 compared to the previous quarter. Similarly, net profit jumped 300 percent to Rs 2 crore.
Revenue grew from Rs 199 crore in FY 21-22 to Rs 202 crore in FY 22-23. Within the stated time range, the net profit increased by 19% from Rs 5 crore to Rs 6 crore.
As of FY 22-23, promoters owned 41.33 percent of the company’s shares, while individual investors owned 55.08 percent.
Written by Omkar Chitnis
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