5:1 Stock Split on June 21: Heavy buying in this multibagger defence explosives stock with Rs 965 crore order book; Hits 52-week high today!

The stock gave multibagger returns of 590 per cent in just 1 year and a whopping 2,000 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Premier Explosives Limited gained 18.34 per cent and made a fresh new 52-week high is Rs 3,040.70 per share from its previous closing of Rs 2,569.45 with a spurt in volume by more than 1.01 times on BSE.

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 over Rs 3,200 crore and as of March 31, 2023, the company’s order book stands at Rs 965 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.

According to Quarterly Results, the net sales increased by 66 per cent to Rs 86.79 crore and net profit increased by 177 per cent to Rs 6.78 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 35 per cent to Rs 271.72 crore and net profit increased by 307 per cent to Rs 28.42 crore in FY24 compared to FY23.

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The Board of Directors of the company announced a 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, ranking pari-passu in all respects. The company fixed the record date for the stock split as Friday, June 21, 2024. Additionally, the Board of Directors of the company recommended a dividend of Rs 2.50 (i.e., 25 per cent) per equity share of Rs 10 each for the financial year ended March 31, 2024.

The stock gave multibagger returns of 590 per cent in just 1 year and a whopping 2,000 per cent in 3 years. Investors should keep an eye on this defence explosives stock.

Disclaimer: The article is for informational purposes only and not investment advice.