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Premier Explosives shares rose over 6% after winning a ₹429.56 crore defence order from the Ministry of Defence.
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Premier Explosives stock has delivered 580% returns in three years, making it one of the top multibagger defence stocks.
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Premier Explosives will supply chaffs and flares to the Indian Air Force within 12 months, boosting its growth outlook.
Premier Explosives gains over 6% after winning defence order
Premier Explosives, a leading Indian defence manufacturing company, saw its shares rise 6.51% to ₹646.15 on Tuesday after it announced a major order from the Ministry of Defence. The company will supply chaffs and flares—defensive countermeasure systems used by aircraft—to the Indian Air Force. The total value of the contract is ₹429.56 crore, including GST, and it will be completed within 12 months.
This large order reflects growing confidence in Premier Explosives’ manufacturing capabilities and its increasing role in India’s self-reliance initiative for defence production. The stock jumped sharply after the news, signaling strong investor sentiment and expectations of higher earnings in the coming quarters.
Premier Explosives delivers massive returns to investors
Over the past few years, Premier Explosives has turned into a multibagger defence stock, delivering exceptional returns to shareholders. In the last one year, the stock has gained 44%, while in two years, it has surged 165%. Over a three-year period, the stock has skyrocketed by 580%, reflecting sustained investor confidence and steady business growth.
The company’s remarkable rally aligns with the overall boom in the Indian defence sector, driven by strong government support, rising exports, and increasing demand for indigenously made weapons and equipment. Premier Explosives has become one of the key beneficiaries of this growth wave.
Premier Explosives order strengthens defence manufacturing focus
The recent order from the Indian Air Force is a major milestone for Premier Explosives, as it strengthens the company’s reputation as a reliable supplier to India’s defence ecosystem. The contract involves the manufacture and supply of chaffs and flares, which are used by fighter jets to mislead enemy missiles and enhance aircraft safety.
By securing such critical defence projects, Premier Explosives reinforces its technological capabilities and commitment to supporting India’s “Make in India” and “Aatmanirbhar Bharat” initiatives. The company’s growing portfolio of defence-related contracts is expected to drive strong revenue growth and improve its profit margins in upcoming quarters.
Premier Explosives shows strong market performance and technical strength
From a technical standpoint, Premier Explosives stock remains in a strong position. The stock’s Relative Strength Index (RSI) is currently 49.1, suggesting it is trading in a neutral zone—neither overbought nor oversold. It is also trading above its 5-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages, which indicates solid bullish momentum.
During the trading session, around 0.93 lakh shares of the company changed hands, resulting in a turnover of ₹5.77 crore. The company’s market capitalization rose to ₹3,375 crore after the share price rally. These indicators highlight that investors continue to show confidence in Premier Explosives’ growth potential.
Premier Explosives plays a key role in India’s defence and space industries
Premier Explosives is primarily engaged in the manufacture of high-energy materials and allied products for various sectors such as defence, space, mining, and infrastructure. The company is one of the few Indian firms with expertise in developing and producing solid propellants for rockets and strap-on motors used in satellite launch vehicles.
It caters not only to domestic defence organizations like the Indian Army, Navy, and Air Force, but also serves clients from the space sector such as ISRO. With its growing presence in both national and international markets, Premier Explosives is positioned as a leading name in India’s strategic industries.
Premier Explosives benefits from defence sector boom
The Indian government’s emphasis on indigenization, local manufacturing, and reducing dependence on imports has opened massive opportunities for defence companies like Premier Explosives. The Defence Acquisition Procedure (DAP) and the push for public-private partnerships have accelerated the growth of homegrown firms.
With rising defence budgets and consistent orders from government agencies, Premier Explosives is expected to see steady growth in its order book. The latest ₹429 crore order adds to an already healthy pipeline of defence and aerospace contracts, ensuring strong visibility for future earnings.
Premier Explosives continues its journey as a multibagger defence stock
Over the years, Premier Explosives has transformed from a small-scale player into a major defence technology firm with consistent profitability and expansion. Its ability to secure repeat orders from the Ministry of Defence highlights trust in its technical capabilities and operational excellence.
Analysts believe that if the company continues to maintain strong execution and capitalize on the expanding defence market, it could sustain its multibagger status in the long term. With India’s growing focus on indigenous defence production, Premier Explosives stands out as a significant beneficiary of the nation’s strategic shift toward self-reliance.
