Explosive Stock with 1,540 per cent Return and an Order Book Worth 3.3x FY24’s Revenue Inks MoU with Another Defense Sector Company
Stock hit the upper circuit after the company announced it had inked a memorandum of understanding (MoU) with Astra Microwave Products to collaborate on developing and marketing products.
The shares of Premier Explosives Limited hit the upper circuit limit of 5 per cent at Rs 588 on BSE on Wednesday. The buying interest surged after the company announced it had signed a memorandum of understanding (MoU) with Astra Microwave Products to collaborate on developing and marketing products together.
In an exchange filing, Premier Explosives stated, “This is to inform you that today our company, Premier Explosives Limited, has signed a Memorandum of Understanding (MoU) with Astra Microwave Products Limited, Hyderabad, for a strategic alliance to jointly develop and sell multiple products.”
Premier Explosives Limited (PEL) is an India-based company specializing in the manufacture of high-energy materials and allied products for various sectors, including defense, space, mining, and infrastructure. Its product range includes bulk and packaged explosives, detonators, detonating cords, pyrogen igniters, and case-bonded propellants.While, Astra Microwave Products Limited (AMPL) focuses on designing, developing, and manufacturing RF and microwave subsystems for the defense, space, meteorology, and telecommunications sectors. AMPL has achieved significant milestones, including the production of hardware for Indian satellites, showcasing its engineering excellence.
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Premier Explosives has a robust order book of nearly Rs 900 crore, approximately 3.3 times its FY24 revenue. In its Q1FY25 earnings, the company reported revenue of Rs 82.8 crore, up 34 per cent YoY, while net profit stood at Rs 72.8 crore, down 11 per cent YoY.
Friday, September 20, 2024, is the record date for Premier Explosives Limited’s final dividend of Rs 0.50 per share for FY24. Shareholders holding shares as of the record date will be eligible for the dividend.
The stock has delivered multibagger returns, gaining over 168 per cent in the last year and 1,540 per cent over the past five years.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.