
Shares of Premier Explosives Ltd were stuck in the upper circuit of 10% on Monday after the company inked a Memorandum of Understanding (MOV) with Global Munition, a subsidiary of NIBE Ordnance and Maritime, to set-up a joint venture to make defence and aerospace products.
Premier Explosives stock started the session higher at Rs 529.50 against the previous close of Rs 516.55 on BSE. Around 9:25 am, the stock hit an upper circuit of 10% at Rs 568.20 and was stuck at that level throughout the session today. The stock closed at the same level on BSE. Total 1.21 lakh shares of the firm changed hands amounting to a turnover of Rs 6.79 crore on BSE on Monday. Market cap of the firm rose to Rs 3054.71 crore.
In a year, the multibagger stock has gained 75.44% and risen 82% since the beginning of this year. The stock has gained 580% in two years.
Global Munition and Premier Explosives will hold equity in the ratio of 51:49 in the proposed joint venture.
Premier Explosives shares have a beta of 1.2, indicating very low volatility in a year.
In terms of technicals, the relative strength index (RSI) of the stock stands at 63.5, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading higher than the 5 day, 20 day, 50 day, 100 day, 150 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.