This explosive manufacturer has gained over 750% in the last three years; do you hold it?

Premier Explosives Limited has delivered multibagger returns to its shareholders in the last three years. During this period, the company’s share price surged from Rs 143.15 on November 14, 2020, to Rs 1240 on November 10, 2023, representing an increase of over 750% in a three-year holding period.

An investment of Rs 1 lakh in this company’s shares three years ago would have grown to Rs 8.50 lakh today.

Financial Performance

Premier Explosives Limited reported a strong second quarter for FY24, with net sales growth of 29.32% to Rs 78.42 crore, compared to Rs 60.64 crore in the same quarter last year. The operating profit experienced a significant increase of 178.11%. The net profit for the quarter stood at Rs 11.66 crore, which was Rs 2.60 crore in the previous year’s same quarter, representing a 348% increase. The company has an ROCE of 6.72% and an ROE of 3.64% with a market capitalization of Rs 1,324 crore.

Business Overview

Premier Explosives Limited (PEL) is primarily involved in the manufacturing and sale of high-energy materials. The bulk explosives, packaged explosives and initiating systems manufactured by PEL find application in the mining, infrastructure and construction industries. The company also diversified into the manufacturing of propellants for missiles and rockets and also strap-on- motors for satellite launch vehicles.

The extended capabilities of the company include products such as chaff, IR flares, explosive bolts, pyro devices, smoke markers, cable cutters, tear gas grenades and other products, including pyrogen igniters for defence and space applications.

Stock Price Movement

Today, the stock opened at Rs 1,254.95, with a high and low of Rs 1,254.95 and Rs 1,218.80, respectively. The stock is currently trading at Rs 1,240.90, which increased by 0.32%. The stock has a 52-week high of Rs 1,319 and a 52-week low of Rs 352.50.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.