Premier Explosives tumbles 29% in eights days

Premier Explosives hit a lower circuit of 5% at Rs 295.45, extending losses for eight day in a row.

The stock has declined 29% in eight sessions, from its recent closing high of Rs 416.10 recorded on 29 April 2022.

On the technical front, the stock's RSI (relative strength index) stood at 29.526. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day and 100-day simple moving average (SMA) placed at 342.95 and 299.16, respectively. It has managed to hold above its 200-day SMA placed at 269.56.

In a regulatory filing made during market hours today, Premier Explosives said that it has signed a contract with Ministry of Defence (Army) for supply of NFM - new family of Munitions for a total value of Rs 44.58 crore, to be delivered within twenty-four months from the effective date of contract.

The production of these items will be done from our facility at Katepally, the company further said.

Premier Explosives is engaged in the manufacture of high-energy materials like bulk explosives, packaged explosives, detonators, detonating fuse, solid propellants, pyrogen igniters, pyro devices, etc., having applications in mining, infrastructure, defence, space, homeland security, and such other areas.

On a consolidated basis, the company reported a net profit of Rs 0.61 crore in Q3 FY22 as compared to a net loss of Rs 5.55 crore in Q3 FY21. Net sales rose 3.6% to Rs 50.62 crore in Q3 FY22 over Q3 FY21.

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