Rs 135 to Rs 3,880: This stock delivered multibagger returns in 3 years, hit record high today     

Shares of Premier Explosives hit record high today amid a rally in the broader market. The multibagger stock, which closed at Rs 135 on June 18, 2021 ended 9.71% higher at Rs 3870 in the current session, delivering 2,766% returns during the period. The stock touched a record high of Rs 3880.30 in the current session.

Premier Explosives shares have gained 752% in a year and risen 168% in three months. The stock clocked multibagger returns of 1190%  in three years. Total 0.39 lakh shares of the firm changed hands amounting to a turnover of Rs 15.04 lakh on BSE today. Market cap of the firm rose to Rs 4,161.12 crore.  

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, "The stock has doubled this year, steering massive gains with optimism continuing to build robust structure for following days. The price action remains highly admissible post breaking out of the tide consolidation in the range of Rs 2800 – Rs 2100 levels. The momentum is rallying higher levels in the overbought category of Relative Strength Index (RSI), signalling a move towards Rs 4200 and  Rs 4500 which cannot be ruled out. Immediate support emerges at Rs 3000-mark."

Premier Explosives shares have a beta of 1.1, indicating very high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 77.1, signaling it's trading in the overbought zone. The defence stock stands higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Premier Explosives reported a 66.28% rise in Q4 revenue to Rs 87.3 crore for the quarter ended March 2024 against Rs 52.5 crore in the March 2023 quarter.

Net profit climbed 183% to Rs 6.8 crore in the last quarter against Rs 2.4 crore in the March 2023 quarter. Operating profit rose nearly 100% to Rs 15.1 crore in the March 2024 quarter against Rs 8.2 crore in the March 2023 quarter.

Order book of the firm for FY24 stood at Rs 964.7 crore, 3.6 times its FY24 revenue. 

The board recommended a dividend of Rs 2.50 ( i.e. 25%) per equity share of Rs 10 each for FY2024, as compared to 17% in FY2023.

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.