Multibagger defence stock logs single-digit gain this year; fresh price targets, technicals and more 

Shares of Premier Explosives have taken a hit from the market sentiment, clocking just 7% returns this year. However, the defence stock has risen 543% in three years and zoomed 2,197% in five years. The multibagger stock has gained 89% from its 52 week low of Rs 308.95 reached on April 7, 2025. 

The limited gains in the Premier Explosives stock this year can be attributed to weak sentiment in the broader market, volatile global cues and profitbooking in defence sector stocks. 

In the current session, Premier Explosives stock rose over 2% to Rs 582.85 against the previous close of Rs 571.30. Total 0.26 lakh shares of the firm changed hands amounting to a turnover of Rs 1.52 crore today. Market cap of the firm rose to Rs 3125 cxrore crore. Premier Explosives shares have a beta of 0.9, indicating average volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 40.8, signaling it's trading neither in the overbought nor in the oversold zone. 

The stock is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day but higher than the 100 day, 150 day and 200 day moving averages.

Jigar S Patel from Anand Rathi said, "Premier Explosives support will be Rs 540 and resistance will be Rs 616. A decisive move above the Rs 616 level may trigger a further upside of Rs 630. The expected trading range will be between Rs 540 to Rs 630 in the short-term." 

InCred Equities has a 'buy' rating on the Premier Explosives stock with a target price of Rs 780. The brokerage said the company was actively participating in emergency defence procurements with Rs 700 crore of request for proposals (RFPs) in the pipeline, highlighting growth potential despite the inherent timeline for defence contract awards.

Abhijeet Ramachandran, independent Sebi registered analyst said, "Premier Explosives stock price is bearish on the Daily charts with strong resistance at Rs 615. A Daily close below support of 562 could  lead to a target of 527 in the near term."

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.