5:1 Stock Split & Rs 827 Crore Order Book: Defence Explosives Company Signs MoU with Global Munition Ltd; Stock Hit Upper Circuit
The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 253.74 per share and a whopping 1,900 per cent in 5 years.
On Monday, shares of Premier Explosives Limited hit a 10 per cent upper circuit to Rs 568.20 per share from its previous closing of Rs 516.55 per share with a spurt in volume by more than 2.90 times on BSE.
Premier Explosives Limited has partnered with Global Munition Limited, a subsidiary of NIBE Ordnance and Maritime Limited, to establish a joint venture dedicated to the production of defence and aerospace products. This strategic alliance, formalized through a Memorandum of Understanding (MoU), aims to leverage the combined expertise and resources of both companies. In this joint venture, Global Munition Limited will hold a majority stake of 51 per cent, while Premier Explosives Limited will retain a 49 per cent shareholding.
Premier Explosives Limited is engaged in the manufacturing of industrial explosives and detonators. It also undertakes operation and maintenance (O&M) services of solid propellant plants at the Srihari Kota Centre of ISRO and the solid fuel complex at Jagdalpur under the umbrella of DRDO. The company has a market cap of Rs 3,055 crore and as of September 30, 2024, the company’s order book stands at Rs 827 crore. The Company has been maintaining a healthy dividend payout of 21.9 per cent and has delivered good profit growth of 19.1 per cent CAGR over the last 5 years.
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The shares of the company ex-traded stock split of existing equity shares of the company, such that 1 equity share having a face value of Rs 10 each, fully paid up, will be sub-divided into 5 equity shares having a face value of Rs 2 each, fully paid up and the ex-date was Friday, June 21, 2024. The stock gave multibagger returns of 124 per cent from its 52-week low of Rs 253.74 per share and a whopping 1,900 per cent in 5 years. Investors should keep an eye on this defence explosives stock.
Disclaimer: The article is for informational purposes only and not investment advice.