5:1 Stock Split & Rs 899.40 Crore Order Book: Defence Explosives Company Receives An Order Worth Rs 89.20 Crore From Singareni Collieries Company Limited

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 236 per share and a whopping 1,350 per cent in 3 years

Premier Explosives Limited has secured a significant order worth Rs 89.20 crore from The Singareni Collieries Company Limited (SCCL), a Government of Telangana company. This domestic order entails the supply of various explosives and accessories, including SME explosives, LDC explosives (both capped and non-capped), and ancillary products like cast boosters, detonating fuses, cord relays, nonel, and factory-set electronic detonators. These materials will be utilized for opencast blasting operations at SCCL's diverse projects. The contract mandates delivery of the supplies over a two-year period.

On Wednesday, shares of Premier Explosives Limited hit 5 per cent upper circuit to Rs 477.15 per share from its previous closing of Rs 454.45 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 Rs 2,565 crore and as of June 30, 2023, the company’s order book stands at Rs 899.40 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 gave multibagger returns of over 100 per cent from its 52-week low of Rs 236 per share and a whopping 1,350 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.