1:5 Stock Split, Rs 2.5 Dividend: Defence Stock Jumps 847.7% In 1-Yr, Shares Get Cheaper

Small cap defence company, Premier Explosives Ltd shares witnessed unbelievable rally of 847.70% in last 1-year only and 2619% in last 3-years. Premier Explosives shares traded ex-split on June 21, 2024 in the ratio of 1:5 implying one share of Premier Explosives split into 5 new shares. Premier Explosives also recommended Rs 2.5 per equity share of the face value of Rs 10/- each for the FY ended March 31, 2024. Record date for dividend is yet to be announced. The company has a market capitalisation of Rs 4,462.18 crore. It has a PE of 37.46 and ROE of 11.20. Check details below:

Premier Explosives Traded Ex-Split In 1:5 Ratio: As per the BSE filing of Premier Explosives issued as on May 30, the company set June 21, 2024 as the record date for stock split in order to ascertain name of shareholders for sub-division/ split of existing 1 (one) Equity Share of face value of Rs. 10/- each fully paid up into 5 (Five) Equity Shares of Rs. 2/- each fully paid up.

Premier Explosives Dividend: The exchange filing of the company issued as on May 30 stated that the company recommended a dividend of Rs.2.50/- per equity share of Rs. 10/- each for the FY ended March 31, 2024, subject to approval of the members at the ensuing 44th Annual General Meeting (AGM) of the Company.

Premier Explosives Dividend History: Premier Explosives declared a total of 21 dividends since September 3, 2001. In last 1-year, the small cap firm declared an equity dividend amounting to Rs 1.70 per share. At the current share price of Rs 830.00, Premier Explosives offers a dividend yield of 0.21%. Adjusting for Bonus/Splits the dividend yield is 0.04%. FII/FPI reduced holdings from 0.32% to 0.27% for March 2024 quarter. Number of FII/FPI investors increased from 6 to 11 in March 2024 quarter. Mutual Funds increased holdings from 8.65% to 9.29% in Mar 2024 quarter. Institutional Investors have increased holdings from 9.59% to 10.54% in Mar 2024 quarter, according to Trendlyne. FIIs stake stood at 0.3% and DII stake at 10.3%.

Premier Explosives Share Performance: The 52-week high price of Premier Explosives shares on BSE is Rs 909.35 per share (as on 21/06/2024) and 52-week low price is Rs 86.00 per share (as on 03/07/2023), respectively. Premier Explosives gave shareholders eye-catching returns. Premier Explosives stock jumped 182% in last 3-months only, gained 166% year-to-date, offered stunning rally of 1218% in last 2-years, and surged 2028% in last 5-years.

Premier Explosives Q4: Premier Explosives declared a growth of 180.08% in its net profit for the quarter ended March 2024 to Rs 6.75 crore as compared to Rs 2.41 crore declared in corresponding quarter of last year. Premier Explosive reported a jump of 65.88% in its sales to Rs 86.79 crore for the March 2024 quarter as against Rs 52.32 crore announced in the similar quarter of last year. The defence sector company for the quarter under review declared its revenue from operations at Rs 87.24 crore as against Rs 52.45 crore in the similar quarter of last year. Profit before tax of Premier Explosives for March 2024 quarter declared at Rs 10.33 crore as against Rs 2.96 crore in the same quarter of last year. Total expenses of small cap firm for the March 2024 quarter declared at Rs 76.91 crore from Rs 49.48 crore in the corresponding quarter of last year.

About: Premier Explosives Limited is a Rs.2600 million company established in 1980. Since inception it has been a research and innovation orieted company by manufacturing explosives and detonators with totally indigenous technology in 1980's and 1990's. In 2013, PEL started commercial-scale manufacture of detonators with Nickel Hydrazine Nitrate (NHN)as primary charge emerging as the world first to do so. Extending its research forte to defence products, in 2003 PEL forayed into development of solid propellants and today it is the only private entity in India manufacturing and supplying solid propellants for prestigious missiles like Akash, Astra, LRSAM, etc, according to BSE filing.

Disclaimer:

The stock highlights the rally in shares, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.