Multibagger defence stock slips 6% on closure notice for Telangana factory

Shares of Premier Explosives Ltd fell nearly 6% today after the firm said it received a notice from the Telangana Pollution Control Board regarding a factory shutdown. The company reported that it has been directed by the Board in Hyderabad to cease all operations at its facility in Katepally Village, Motakondur Mandal, Yadadri-Bhuvanagiri District.

The directive follows a tragic incident on April 29, 2025, in which a fire and explosion claimed the lives of three individuals and left six others injured.

In response, the company is actively engaging with the Telangana Pollution Control Board to expedite the process of restoring its operating license.

"This is to inform you that the Company has received closure orders dated May 07, 2025, from the Telangana Pollution Control Board, Hyderabad, Telangana, to stop all industrial activities with immediate effect, in the Company's factory situated at Katepally Village, Motakondur Mandal, Yadadri-Bhuvanagiri District, Telangana, where an accident occurred on April 29, 2025. The Company is taking all necessary recourse with Telangana Pollution Control Board to get back the consent to operate at the earliest," said Premier Explosives. 

Premier Explosives stock slipped 5.77% to Rs 425 today against the previous close of Rs 451.05 on BSE. In one year, the multibagger stock has lost 3% and risen 407% in two years. Total 0.81 lakh shares of the firm changed hands amounting to a turnover of Rs 3.52 crore on BSE today. Market cap of the firm slipped to Rs 2367 crore. 

Premier Explosives shares have a beta of 1.2, indicating very high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 60.3, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading higher than the 5 day, 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.