Premier Explosives soars 5% on bagging 2 orders worth Rs 86 crore

The order from the Defense Ministry pertains to the supply of 50 MM MTV flares within 12 months at the cost of Rs 76.8 crore.

Premier Explosives Limited shares surged 5 percent in early trade on July 6 after winning two orders from the Ministry of Defence and Bharat Dynamics Limited to the tune of Rs 86.5 crore.

At 10:51 am, Premier Explosives was trading at Rs 455 apiece, up 3.5 percent from the previous day's close on the National Stock Exchange.

Follow our market blog for all the live action

According to disclosure to the stock exchanges, the order from the Defence Ministry pertains to the supply of 50 MM MTV flares within 12 months at the cost of Rs 76.8 crore. The second order from Bharat Dynamics, a defence ministry enterprise, is related to the supply of booster grains within twelve months. The order is worth Rs 9.7 crore, inclusive of the goods and services tax (GST).

The company has been a good run in terms of winning orders. It won an order in June it received an order for supplying PI & P2 motors to Bharat Dynamics for a Medium Range Surface to Air Missile (MRSAM), which it has to deliver within 24 months. The order is worth Rs 43.26 crore.

The defence sector company also said it received an order from Larsen & Toubro (L&T) to supply propellant strap-on motors (PSOM-XL), which is used to achieve higher payload capability for satellite launch vehicles of the Indian Space Research Organisation (ISRO).

Also read: Premier Explo Standalone March 2023 Net Sales at Rs 52.32 crore, down 13.45% Y-o-Y

Premier Explosives Ltd is a major player that manufactures solid propellants for India's prestigious missile programs like Akash, Astra, and Long Range Surface to Air Missile (LRSAM).

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.