Premier Explosives shares jump 6% on winning orders from defence ministry, Bharat Dynamics

Shares of Premier Explosives Ltd jumped over 6% today after the firm said it received orders worth Rs 86 crore from the ministry of defence and Bharat Dynamics Ltd.

Premier Explosives stock rose 6.24% intraday to Rs 467.10 against the previous close of Rs 439.65 on BSE. In one year, the stock has gained 159.55% and risen 40.50% since the beginning of this year. Total 8794 shares of the firm changed hands amounting to a turnover of Rs 40.47 lakh on BSE today. Market cap of the firm rose to Rs 493.04 crore.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 55.2, signaling it's trading neither in the overbought nor in the oversold zone. Premier Explosives shares have a beta of 0.7, indicating very low volatility in a year. The share is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The company said the ministry of defence (Air HQ) awarded an order for  Rs 76.78 crore for supply of 50 MM MTV flares.  The firm also received an order from Bharat Dynamics Ltd for the supply of booster grains. The  value of order is Rs 9.73 crore.

The time period in which these projects have to completed is 1 year each.

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.

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