Defense stocks: Shares of Premier Explosives Ltd saw a rise of about 7% on Tuesday. The company said it has received an order worth ₹429.56 crore from the Defense Ministry of India to supply chaffs and flares for the Indian Air Force (IAF).
Premier Explosives said these orders are to be fulfilled within the next 12 months. This includes Goods and Services Tax (GST).
Countermeasure System for IAF
This contract given by the Defense Ministry to IAF is related to the supply of chaffs and flares. These are countermeasure systems that help protect military aircraft from radar-guided and heat-seeking missiles.
Premier Explosives clarified that the contract has been awarded by a domestic entity. It is not linked to any related-party transaction. The company also said that no promoter or group company has any stake in the organization placing the order.
Important defense company of the country since 1980
Premier Explosives, started in 1980, is an important defense company of India. The company manufactures solid propellants, pyrotechnics and high-energy materials used in defence, space and mining sectors.
Premier Explosives plays an important role in the security system of the country. It supplies essential components and materials to the Indian armed forces, Defense Research and Development Organization (DRDO) and Indian Space Research Organization (ISRO).
Shares of Premier Explosives
Shares of Premier Explosives on Tuesday finally closed at Rs 628.45 with a gain of 3.93%. It made an intraday high of Rs 646.65, which was 6.9% higher than yesterday’s closing level. At one time it had increased by 8.65% from its intraday low-level.
The stock of Premier Explosives has increased by 43.32% in the last 6 months. At the same time, in the last 5 years it has given a multibagger return of 2,598.37%.
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