Premier Explosives saw a notable uptick in its shares, as prices jumped 8.8 percent to hit an all-time high of Rs. 967.45 apiece on Thursday, July 20, following the announcement of stellar Q1 earnings.
On the previous day, the shares were locked in the 10 percent upper circuit, achieving a new record high of ₹889.15.
The defence firm witnessed a significant six-fold increase in its June quarter profit on a year-on-year basis. The company reported a profit of ₹8.21 crore in the June quarter, marking a substantial growth compared to the profit of ₹1.26 crore recorded in the corresponding period of the previous fiscal year.
During Thursday’s trade, the stock opened at a price of Rs. 931.05 per share against the previous close of Rs. 889.15 per share and grew further during the early trading session to touch a record high of Rs. 967.45.
It was trading at ₹953.10 apiece, up by 7.19 percent, at 10:40 a.m. on the BSE.
The stock touched a 52-week low of Rs. 310.10 on July 27, 2022, indicating that at the current price, the stock is trading over 207 percent above that level.
The stock has zoomed almost 28 percent in the last five days. In the last one month, it has yielded a return of over 114 percent. In the past one year, the stock has gained nearly 183 percent.
In the year-ago quarter, the company recorded a profit of ₹1.26 crore, and in the previous quarter (Q4FY23), it reported a profit of ₹2.43 crore. Notably, in the first quarter of the current fiscal year, it surpassed the entire profit of the previous fiscal year (FY23), which amounted to ₹6.97 crore.
The company reported a total income of Rs. 62.2551 crores, which represents an increase from Rs. 52.4614 crores recorded during the period ended March 31, 2023.
The company's revenue from operations witnessed a substantial 20 percent year-on-year (YoY) growth, reaching ₹61.95 crore, compared to ₹51.77 crore in Q1FY23. Additionally, the raw material cost decreased to ₹28.53 crore from ₹29.91 crore in the corresponding quarter of the previous year.
Last week, the company was awarded contracts worth ₹292.11 crore for the supply of chaffs and orders amounting to ₹260.15 crore for the supply of flares. These contracts are set to be executed within the span of 12 months.
In addition, the Ministry of Defence (Air HQ) awarded them a contract worth ₹76.78 crore for the supply of 50 MM MTV flares. The company received another order from Bharat Dynamics Ltd for the supply of booster grains, with a value of ₹9.73 crore.
Premier Explosives Limited is an India-based company that is primarily engaged in the manufacture of high-energy materials and allied products for the defense, space, mining and infrastructure industries. It is focused on developing and manufacturing solid propellants for rockets and strap-on motors for satellite launch vehicles.
