Up 31% in two sessions! What is driving this recently listed SME firm higher?

Shares of recently listed SME company Premier Roadlines Ltd extended its gains and surged more than 9 per cent during the trading session on Monday, hitting new all-time highs. The stock had surged about 20 per cent in the previous trading session on Friday on the back of strong quarterly earnings.
 

Premier Roadlines reported a 77.28 per cent rise in its net profit on a year-on-year (YoY) basis at Rs 8.07 crore for the six-months ended on March 31, 2024. The company's net profit came in at Rs 4.55 crore in the year-ago period. It was its first quarterly earnings after listing.
 

Revenue from operations grew 37.14 per cent YoY to Rs 1,321.17 crore for October 2023- March 2024 from Rs 963.37 crore in the preceding period. To recall, SME companies have to share their earnings on the six-month period with the respective exchange.
 

Shares of Premier Roadlines rose 9.45 per cent to Rs 113.55 on Monday, commanding a total market capitalization of more than 250 crore. The stock had settled at Rs 103.75 in the previous trading session on Friday, up nearly 20 per cent. The stock has gained about 31 per cent in the last two trading sessions.
 

The counter, in just three-trading sessions, has gained 48, while it is up more than 65 per cent from its 52-week lows at Rs 68.65 hit on June 04, 2024. However, the stock did not breach its issue price since listing.
 

Founded in 2008, Premier Roadlines offers logistics solutions for companies, especially for land transportation of goods between 1 MT and 250 MT. The company offers general transportation services, project logistics, and oversized/overweight cargo transportation across India.
 

Shares of Premier Roadline were listed at the bourses on May 17, 2024, when the company raised a total of Rs 40.36 crore via its IPO between May 10-14 by selling its shares for Rs 67 apiece. The stock is up about 70 per cent in a month from its given issue price for far.
 

The company's customers come from sectors such as infrastructure, energy, electricity, oil and gas, mechanical engineering, construction, metallurgy, renewable energies and more including KEC International, ThyssenKrupp Industrial Solutions (India), Tata Project, GR Infra, Tata Power Solar Systems, Sterlite Power Transmission and others.
 

Hem Securities was the book running lead manager of the Premier Roadlines IPO, while Maashitla Securities was s the registrar for the issue. The market maker for Premier Roadlines IPO was Hem Finlease.