Unstoppable momentum: Multibagger stock rallies over 20 per cent; back-to-back orders received!
The company has consistently maintained a healthy dividend payout of 18.7 per cent.
On July 12,2023, Sensex and Nifty both closed lower, with Sensex declining by 0.34 per cent and Nifty dropping by 0.28 per cent, indicating a negative market sentiment.
Despite the dampening market sentiments, the shares of Premier Explosives Limited dazzled with an impressive surge of 20 per cent. The stock touched upper circuit at Rs 706.50 per share on BSE. Additionally, the scrip witnessed a spurt in volume by more than 19.18 times. This indicates heavy buying among investors. The company's current market capitalization is Rs 759.65 crore.
Yesterday, the company backed an order from, The Ministry of Defence and specifically the Indian Air Force in New Delhi. They awarded two significant orders: one for the supply of Chaffs and the other for the supply of Flares.
The agreed time period for execution of these orders is within twelve months. The size of the orders is Rs 292.11 Crores for the Supply of Chaffs and Rs 260.15 Crores for the Supply of Flares.
Furthermore, the company also received an order on July 06, 2023, The Air HQ Bharat Dynamics Limited in Hyderabad, awarded two contracts. The first contract was for the supply of 50 MM MTV Flares, and the second contract was for the supply of Booster Grains.
The size of the contracts is Rs 76.78 Crores for the supply of 50 MM MTV Flares and Rs 9.73 Crores for the supply of Booster Grains.
These back-to-back orders have created attention and interest among investors. Leading to increased traction for the company's stocks.
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Premier Explosives Limited specializes in the manufacturing of industrial explosives and detonators. Additionally, the company provides operation and maintenance (O&M) services for solid propellant plants at the Sriharikota Centre of the Indian Space Research Organization (ISRO) and the Solid Fuel Complex at Jagdalpur, which fall under the umbrella of the Defense Research and Development Organization (DRDO).
A dividend is a portion of a company's profits that is distributed to its shareholders. Premier Explosives, it has consistently maintained a healthy dividend payout of 18.7 per cent. Any remaining amount not distributed is typically reinvested back into the business for further growth and development.
Zooming out to the financial statements for FY23, the company's total revenue showed a modest growth of 1.50 per cent, reaching Rs 202 crore. Moreover, there was a significant improvement in operational efficiency as the operating profit increased by 18.18 per cent to Rs 26 crore. Additionally, the net profit surged of 16.66 per cent to Rs 7 crore.
The stock has gained momentum in the past 1 year as it has given multibagger returns of more than 132 per cent. Moreover, the stock has surged more than 422 per cent in the last 3 years. Keep a close eye on this trending stock.