Premier Explosives stock skyrockets on new order win

Premier Explosives Ltd informed the markets that it has won an order from Vikram Sarabhai Space Centre (VSSC) for production of PSOM-XL segments (solid propellant) for their satellite launch vehicles. Cheering this development, the stock of Premier Explosives on Wednesday jumped more than 12 per cent to hit an intraday high of Rs. 186.80 on the BSE.

The company is delighted as this is the first order to be executed at the Solid Propellant Plant located at its Katepally Greenfield project, inaugurated in August 2019. The Company has already supplied this product to SHAR and it was successfully test fired in 2018 at Sriharikota.

The company has also mentioned that the order is to be executed within a period of 18 months. This is not a material order. 

Last month only, the company had received license from Chief Controller of Explosives, Nagpur for manufacture of Solid Propellant at the company's factory situated at Katepally, near Hyderabad. This license now enables the company to manufacture solid propellants of larger size at its Greenfield project.

Premier Explosives Ltd is a prominent player in manufacturing solid propellants for India's prestigious missile programmes like Akash, Astra, and LRSAM.

On Wednesday, the stock of Premier Explosives Ltd was last trading in BSE at Rs.176.95, up 5.30 per cent from the previous close of Rs. 168.05. The stock hit an intraday high of Rs. 186.80 and intraday low of 175.35 on BSE.