5:1 Stock Split & Rs 739.30 Crore Order Book: Defence Explosives Company Bags New International Order Worth Rs 21,45,00,000
The stock is up by 28 per cent from its 52-week low of Rs 263.11 per share and gave multibagger returns of over 1,700 per cent in 5 years.
Premier Explosives Limited has secured an international export order valued at Rs 21.45 crores from international clients for the supply of defence explosives, with the order to be fulfilled within a 5-month timeframe. This international order specifically pertains to the supply of defence-related explosives.
Premier Explosives Limited (PEL) has entered into a Joint Venture Agreement and Shareholders Agreement with Global Munition Limited (GML), a subsidiary of NIBE Ordnance and Maritime Limited, to manufacture Defence and Aerospace products. This agreement, disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outlines the formation of a joint venture where GML will hold a 51 per cent share and PEL a 49 per cent share, with GML nominating three out of five directors and both parties jointly appointing key managerial personnel; PEL holds no prior shareholding in GML.
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About the Company
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.
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 is up by 28 per cent from its 52-week low of Rs 263.11 per share and gave multibagger returns of over 1,700 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.