Multibagger stock slips 4% despite JV to make defence, aerospace products 

Shares of Premier Explosives Ltd slipped 4% on Tuesday even as the defence firm said it has inked a Joint Venture Agreement and Shareholders Agreement with Global Munition Limited, a subsidiary of NIBE Ordnance and Maritime Limited (NmE Group Company), to manufacture defence and aerospace products. 

Premier Explosives stock fell 3.87% to Rs 325 against the previous close of Rs 337.55 on BSE. Total 6437 shares of the firm changed hands amounting to a turnover of Rs 21.19 lakh on BSE on Tuesday. Market cap of the firm fell to Rs 1,763.64 crore. 

In a year, the multibagger stock has gained 14.18% and lost 39.64% since the beginning of this year. The stock has gained 325 % in two years. 

Global Munition and Premier Explosives will hold equity in the ratio of 51:49 in the proposed joint venture. 

1.The Board of the JV Company shall comprise of five (5) Directors. GML will have the right to nominate three (3) Directors and PEL shall have
the right to nominate two (2) directors.

2. The parties shall jointly appoint/nominate the Chief Executive Officer (,CEO'), Chief Financial Officer ('CFO'), Auditor and other Key Managerial Person ('KMP') for the Joint Venture Company.

Premier Explosives shares have a beta of 1.5, indicating very high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the stock stands at 37.1, signaling it's trading neither in the overbought nor in the oversold zone. The share is trading lower 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.