Shares of Premier Explosives Ltd., a leading manufacturer of solid propellants for India's missile programmes like Akash, Astra and LRSAM, have surged nearly 70 percent over the last seven trading sessions.

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The stock gained 3 percent on Thursday, coming on the back of two consecutive upper circuits of 20 percent each. Until the start of the month, the stock was flat on a year-to-date basis, but is now up 73 percent, courtesy the surge witnessed over the last seven sessions. Over the last 12 months, the stock has multipled nearly 2.5 times.

However, it is not the surge in share price, but the volume activity that is drawing interest. The stock had 12.5 lakh shares traded on Thursday, taking the total number of shares traded over the last six sessions to 27.5 lakh. Premier Explosives, on an average, has 8,000 to 10,000 shares traded in a day. CNBC-TV18's calculations indicated that the 27.5 lakh shares traded over the last six days is the sum total of all the shares traded over the last 210 trading sessions, dating back to September 2022!

On the charts, the recent surge has taken the stock well past its 50, 100 and 200-Day Moving Averages (DMA), which are placed at Rs 449, Rs 422.95 and Rs 423.9 respectively.

At the day's high on Thursday, Premier Explosives' market capitalisation touched nearly Rs 800 crore when it started the month with its market capitalisation being around Rs 400 crore to Rs 450 crore. By Thursday's close, the stock had added Rs 316 crore to its overall market value since July 04.

There have been news triggers for the stock recently as well. The company recently won an order worth Rs 553 crore from the Defence Ministry. Just a few days prior, on July 6, it won two separate orders worth Rs 86.5 crore from the Ministry of Defence and Bharat Dynamics.

Last month, on June 9, the stock had won an order worth Rs 43.2 crore from Bharat Dynamics and a separate order from Larsen & Toubro, for which it would receive Rs 13.94 crore.

Premier Explosives reported a net profit of Rs 6.9 crore in financial year 2023, a 23 percent rise from Rs 5.6 crore that it reported in financial year 2022.

First Published:Jul 14, 2023 9:38 AM IST