1:10 Stock Split: Defence Stock That Gained Over 100% In 6 Months, Halts Winning Streak; PE Ratio At 116.36X

Premier Explosives, a defence company, halted its three-consecutive days winning streak on August 21, by falling nearly 5% on BSE. The stock has erased its Rs 600 mark. This has squeezed gains in the multibagger to 88.5% YTD. Nonetheless, Premier Explosives still has given robust 104% returns in six months. These returns are adjusted to its stock split.

The stock turned ex-split for sub-division in the ratio of 5:1. Meaning, 1 existing equity share of Premier Explosives with a face value of Rs 10 each, subdivided into 5 smaller equity shares with a face value of Rs 2 each. The record date to determine eligible shareholders for the stock split was fixed on June 21.

In Q1FY25, the company reported a standalone net profit of Rs 7.27 crore, lower compared to PAT of Rs 8.21 crore in Q1FY24. But the latest net profit was up from the March 2024 quarter where PAT was at Rs 6.63 crore.

Meanwhile, revenue from operations stood at Rs 82.85 crore in Q1FY25, up from Rs 61.95 crore in the same quarter a year ago. While revenue was down from Rs 86.79 crore revenue seen in Q4FY24.

PEL has the widest range of products and technologies in the manufacture of Explosives & Accessories. These include Emulsion and Slurry explosives, LD cartridge explosives, Bulk Explosives, Small-dia non-permitted explosives, Permitted explosives, Cast Boosters, Pillow-packs for secondary blasting; Detonating Fuse of various core-loads, Plain detonators, Instantaneous Electric Detonators, Electric Delay Detonators, Permitted Detonators, Cord Relays and Amardet NoN-Electric Shock-tube Detonators.