Shares of Premier Explosives have been on a winning streak for the last six trading sessions. The shares, which were trading at around ₹431 apiece on July 04, have risen to the current level of ₹708.65, resulting in a stellar gain of 64.5%.
Notably, the stock has hit the upper circuit limit of 20% in the last two trading sessions. This surge can be attributed to the company's recent order wins, which have significantly boosted investor confidence.
On July 11, the company received an order from the Indian Air Force for the supply of Chaffs and Flares. The total order value of this contract is worth ₹552 crore.
On July 06, the company said it secured an order worth ₹76.78 crore from the Ministry of Defence for the supply of MM MTV flares. In addition, the company received two significant orders from Bharat Dynamics Limited. The first order is to supply PI & P2 Motors of MRSAM, valued at ₹43.26 crore, while the other order is for the supply of Booster Grains, which is worth ₹9.73 crore.
In June, it also won an order from Larsen & Toubro Limited for the supply of PSOM-XL motors. The order for this contract is valued at ₹13.94 crore.
The company is a prominent player in manufacturing solid propellants for India's prestigious missile programmes like Akash, Astra, and LRSAM. It has the honour of being the first to set up a manufacturing unit with totally indigenous commercial explosive technology.
Premier Explosives is also the first private-sector manufacturer in India to develop and supply solid propellants, as per the company's website.
The stock, from its all-time low of ₹57 apiece, marked on March 20, 2020, has zoomed remarkably by 1143% to the current level of ₹708.65 apiece. Since its listing in 2016, the current July has been the best month for the stock, as this month, the stock saw a 63% rise in value.
The previous best monthly performance was recorded in August 2022, April 2022, and May 2017, when the stock registered gains of 57%, 32%, and 22%, respectively.
On the financial front, the company reported a 97.45% YoY rise in the standalone net profit to ₹2.33 crore in Q4 FY23, ending FY23 with a total profit of ₹6.9 crore, a 23.21% increase compared to FY22's net profit of ₹5.6 crore.
The consolidated revenue from operations during the March quarter stood at ₹52.31 crore, reflecting a 13.46% drop as compared to ₹60.45 crore in the year-ago period, whereas, for FY23, revenues were up marginally by 1.46%.
The revenue from its Explosive segment, which accounted for 51% of the total revenue in FY23, increased by 41% to ₹103 crore as compared to ₹73.1 crore recorded in FY22. While the revenue from the Defence & Space service segment came in at ₹98.4 crore in FY23, a drop of over 21.5%.
The company announced that its order book at the end of FY23 stood at ₹521 crore, which is 2.58 times its FY23 revenue.
At the end of Q4FY23, the promoter owned 41.2% of the shares in the company, whereas foreign portfolio investors and domestic institutional investors held 0.2% and 3.4%, respectively. The remaining 55.1% of shares were owned by regular shareholders.
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