Dark Horse Stock of the Day: Heavy Buying Hits Upper Circuit; This Explosive and Defence Stock Rallied by 170 per cent in Just 3 Months!

Dark Horse Stock of the Day: Heavy Buying Hits Upper Circuit; This Explosive and Defence Stock Rallied by 170 per cent in Just 3 Months!

Rakesh Deshmukh

The shares of the company have delivered a return of over 754 per cent to its shareholders in just 1 year only.

Premier Explosives Limited is engaged in the manufacturing of industrial explosives and detonators. Additionally, it undertakes operation and maintenance (O&M) services for solid propellant plants at the Sriharikota Centre of ISRO and the Solid Fuel Complex at Jagdalpur under the umbrella of DRDO. Today the company experienced a significant surge in its share price.

At the start of the day's trading session, the share of Premier Explosives Limited opened at Rs 3850 per share, compared to the previous day's closing figure of Rs 3527.55 per share on the BSE. Currently, the shares are at Rs 3880.30 per share on the BSE. The stock has reached the upper circuit price limit of 10 per cent, reflecting strong demand in the market with no sellers willing to offer shares, resulting in potential buyers being unable to make purchases, leading to disappointment among buyers. The current market capitalization of Premier Explosives Limited stands at Rs 4172.19 crore, and the stock has generated an impressive multibagger return of around 169 per cent in just 3 months only. 

NSE:PREMEXPLN Chart Image by RaxRakeshFinancial Performance

As per the Quarterly Results, in the fourth quarter of FY24, Premier Explosives Limited recorded a revenue of Rs 86.79 crore. The operating profit for Q4 FY24 stood at Rs 15.09 crore, resulting in an operating profit margin of 17.39 per cent. The net profit for Q4 FY24 was Rs 6.63 crore. Looking at the annual performance, the company generated a revenue of Rs 272 crore in FY24, compared to Rs 202 crore in FY23. The operating profit for FY24 was Rs 58 crore, with a net profit of Rs 28 crore.

Regarding the shareholding pattern, the promoters own 41.33 per cent of the company and the public or retail investors hold 48.11 per cent.

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.

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