Multibagger defence stock hits upper circuit on MoU with Astra Microwave 

Shares of Premier Explosives Ltd hit upper circuit of 5% today after the defence sector firm said it has inked a memorandum of understanding (MoU) with Astra Microwave Products to develop and sell multiple products jointly. Premier Explosives stock climbed 5% to a high of Rs 588.05 against the previous close of Rs 560.05 on BSE. In one year, the multibagger stock has gained 169.23% and risen 500% in two years. Total 6,709 shares of the firm changed hands amounting to a turnover of Rs 39.24 lakh on BSE today. Market cap of the firm rose to Rs 3,118 crore. 

Premier Explosives shares have a beta of 1.2, indicating very high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the Premier Explosives stock stands at 43, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading higher than the 5 day, 10 day, 20 day, 150 day, 200 day and lower than the 30 day, 50 day and 100 day moving averages.

In an exchange filing, Premier Explosives said, “This is to inform you that today our Company, Premier Explosives Limited, has signed a Memorandum of Understanding (MOU) with Astra Microwave Products Limited, Hyderabad, for a strategic alliance to develop and sell multiple products jointly.”

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.