Multibagger defence stock hits lower circuit post Q1 earnings, check details

Shares of Premier Explosives hit the lower circuit of 5% in early deals today after the firm  reported a 11.34% fall in net profit for the June 2024 quarter. Premier Explosives’ net profit slipped to Rs 7.31 crore in the June 2024 quarter against Rs 8.25 crore in the June 2023 quarter. However, revenue climbed 34% to Rs 82.85 crore in the June 2024 quarter against Rs 61.95 crore in the corresponding quarter of the previous fiscal.  

The multibagger stock fell 5% to Rs 643.55 against the previous close of Rs 677.40 on BSE.  The defence stock was stuck in the lower circuit of 5% in late morning deals today. Market cap of Premier Explosives fell to Rs 3459 crore on BSE. Total 0.30 lakh shares of Premier Explosives changed hands amounting to a turnover of Rs 1.93 crore on BSE today

Premier Explosives shares have gained 262% in a year and risen 836% since the beginning of this year. The stock clocked multibagger returns of 1410%  and 1727%, respectively in three and five years.

Profit before tax slipped to Rs 10.68 crore in the last quarter against Rs 11.44 crore in Q1 of the previous fiscal.

Earnings per share fell to Rs 1.36 in Q1 against Rs 1.54  in the June 2023 quarter.

Premier Explosives shares have a beta of 1, indicating average volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 44.8, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading lower than the 5 day, 10 day, 20 day, 30 day but higher than the 50 day, 100 day, 150 day and 200 day moving averages.

Premier Explosives Limited is primarily engaged in the manufacture of high energy materials and allied products for the defence, space, mining and infrastructure industries. The company's geographical segments include India and the Rest of the world. It is focused on developing and manufacturing solid propellants for rockets and strap-on motors for satellite launch vehicles.