Premier Explosives gets order enhancement from Israel Aerospace; stock zooms over 7 per cent

Premier Explosives Limited (PEL) has received an enhancement in order from Israel Aerospace Industries Limited (IAI) for the development & supply of EDRM Rocket Motors for a total value of USD 13,84,000 in place of USD 5,20,000. These ordered items are expected to be delivered by September 30, 2021. 

On August 20, 2020, the company had informed the bourses that it had received orders from IAI for a total value of USD 5,20,000. 

Last month, the company had bagged another order from Ministry of Defence, GOI for the procurement of 26 MM Chaffs worth Rs 13.78 crore. Besides, it had also received an order from Ministry of Defence, GOI for the procurement of 50 MM flares worth Rs 20.33 crore. 

By the end of September 2020, PEL’s total order book stood at Rs 510.9 crore, out of which, its explosive business comprises around Rs 116.1 crore, defence segment-Rs 219.6 crore and services i.e. O&M was Rs 175.2 crore. The order book gives revenue visibility for the next 3-4 years. 

Recently, the company has received an industrial licence from Department for Promotion of Industry & Internal Trade (DPIIT) under Arms Act 1959 for manufacturing all types of warheads as well as electronic & mechanical fuses. This will enable PEL to enter into new business areas in defence explosives. 

On Wednesday, the stock of Premier Explosives Limited closed 7.15 per cent higher at Rs 166.40. During the day, it made an intraday high of Rs 168.25 on BSE.