Multibagger defence stock hits record high after board clears stock split, fundraising

Multibagger defence stock hits record high after board clears stock split, fundraising

Shares of Premier Explosives zoomed over 5% to a record high on Friday after board of the defence firm approves a stock split in the ratio of 1:5. Premier Explosives stock gained 5.14% to Rs 2125 against the previous close of Rs 2021.05 on BSE. The board of the firm also approved raising of up to Rs 400 crore.

Premier Explosives shares have gained 408% in a year and risen 34% since the beginning of this year. The stock delivered multibagger returns of 460% and 1277%, respectively in two and three years. Total 0.28 lakh shares of the firm changed hands amounting to a turnover of Rs 5.72 lakh on BSE today. Market cap of the firm rose to Rs 2246.57 crore.

“Raising of funds through issuance of instruments or security including equity shares or any other eligible securities by way of one or more public and/or private offerings including on a preferential allotment basis and/or a qualified institutions placement and/or rights issue and/or further public offering, in one or more of the tranches for an aggregate amount not exceeding Rs. 400 crores (Rupees Four Hundred Crores),” said Premier Explosives in a communication to bourses.

Premier Explosives shares have a beta of 0.8, indicating very low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 77.3, signaling it’s trading in the overbought 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.

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