Premier Explosives gains after bagging approval for facility

Premier Explosives rose 2.44% to Rs 446.95 at 12:10 IST on BSE after the company said it got nod for setting up manufacturing facility at Katepally village in Hyderabad.

The announcement was made during trading hours today, 24 October 2017.

Meanwhile, the S&P BSE Sensex was up 111.36 points, or 0.34% to 32,618.08.

On the BSE, 10,000 shares were traded in the counter so far, compared with average daily volumes of 3,009 shares in the past one quarter. The stock had hit a high of Rs 484 and a low of Rs 435.70 so far during the day. The stock hit a record high of Rs 539.35 on 16 June 2017. The stock hit a 52-week low of Rs 304.50 on 23 November 2016.

The stock had underperformed the market over the past one month till 23 October 2017, rising 1.14% compared with 1.83% rise in the Sensex. The scrip had underperformed the market in past one quarter, falling 15.58% as against Sensex's 0.86% rise. The scrip had outperformed the market in past one year, rising 17.59% as against Sensex's 15.36% rise.

The small-cap company has equity capital of Rs 10.64 crore. Face value per share is Rs 10.

Premier Explosives said it received an approval for the drawings of manufacturing factory at Katepally village. The company would manufacture HMX, ammunition, solid propellants and warheads at this Greenfield project which is located about 80 km from Hyderabad. Premier Explosives had already received Industrial Licences for these products. With receipt of this approval, the company can now start construction of the plant and plans to complete it by December 2018.

Net profit of Premier Explosives rose 20.41% to Rs 2.36 crore on 20.65% rise in net sales to Rs 56.90 crore in Q1 June 2017 over Q1 June 2016.

Premier Explosives is a prominent player in manufacturing solid propellants for India's prestigious missile programmes like Akash, Astra, and LRSAM.

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