Premier Explosives shares stuck in upper circuit, here's why 

Shares of Premier Explosives Ltd were stuck in the upper circuit of 5% on Wednesday. The rally in the stock came after the firm said it won an order worth Rs 89.20 crore from Singareni Collieries Company (SCCL). Premier Explosives stock opened higher at Rs 472 today against the previous close of Rs 454.45

Later the stock was stuck in the upper circuit of 5% at Rs 477.15 on Tuesday against the previous close of Rs 454.45 on BSE. In a year, the multibagger stock has gained 95.59% and risen 440% in two years.

Total 0.12 lakh shares of the firm changed hands amounting to a turnover of Rs 56.51 lakh on BSE. Market cap of the firm rose to Rs 2443 crore.

The order is for supply of SME explosives, LDC explosives (Cap & Non Cap) and accessories (Cast Booster, Detonating Fuse, Cord Relay, Nonel and Electronic Detonators - Factory set) for use in OB blasting at different Opencast Projects of SCCL to be delivered over a period of 2 years.

The company in a communication to bourses said, “This is to inform you that we have received an order for Rs. 89.20 crores from Singareni Collieries Company Limited (A Government Company) for supply of SME explosives, LDC explosives (Cap & Non Cap) and accessories (Cast Booster, Detonating Fuse, Cord Relay, Nonel and Electronic Detonators - Factory set) for use in OB blasting at different Opencast Projects of SCCL to be delivered over a period of 2 years.”

Premier Explosives shares have a beta of 1.3, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 39.4, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading higher than the 5 day, 10 day but lower than the 20 day, 50 day, 100 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.