1:5 Stock Split: Record Date On 21st June (Friday); Should You Pick A Stake To Be Eligible?

One of the leading producers of solid propellants for India's high-profile missile systems, such as Akash, Astra, and LRSAM, is Premier Explosives Ltd. In the manufacturing of explosives and accessories, it offers the most diverse variety of products and innovations available today. This week, as the stock gets closer to the record date of June 21 for a 1:5 stock split, market observers will probably be keeping a close eye on it.

Premier Explosives Stock Split Record Date

For the purpose of sub-division/ split of existing 1 equity share of face value of Rs.10/- each fully paid up into 5 equity shares of face value of Rs.2/- each fully paid up, the company has fixed Friday, 21st June 2024 as the record date, to ascertain the name of the shareholders entitled for the sub-division/ split, said Premier Explosives in a stock exchange filing.

Premier Explosives FY24 Performance Highlights

Premier Explosives' net profit climbed by 180.08% to Rs 6.75 crore in the quarter that ended in March 2024 from Rs 2.41 crore in the quarter that ended in March 2023. Sales in Q4FY24 jumped 65.88% to Rs 86.79 crore from Rs 52.32 crore in Q4FY23. Net profit for the entire year climbed by 310.42% to Rs 28.36 crore in the fiscal year that ended in March 2024 from Rs 6.91 crore in the fiscal year that ended in March 2023. Sales went from Rs 202.03 crore in FY23 to Rs 271.72 crore in FY24, a 34.49% growth.

The overall export revenues in Q4FY24 climbed to Rs. 354 Mn, a 526% Q-o-Q growth. Overall revenue from exports reached Rs. 697 million in FY 2024, up 112% year on year. Defence Exports' revenue increased to Rs. 564.5 million in FY 2024, a 225% YoY growth. Approximately 3.6 times its FY24 revenue, or Rs. 9,647 million, was in its strong order book. Order inflow for FY24 amounts to approximately Rs 7,115 million. These are orders to be carried out during the following nine to eighteen months from BDL, L&T, MoD (IAF), Elbit, and IAI as well as seeking to obtain additional orders in the explosive and defence segments, Premier Explosives said,

Premier Explosives Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "PREMEXPLN is currently trading at 3529.45 levels, demonstrating a strong upward trend. Over the past six days, the stock has consistently formed higher highs and higher lows, reflecting robust bullish momentum. The recent breakout above the 2800 level has propelled the stock to all-time high levels, underlining its significant strength. The stock's current trading position above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Averages (EMAs) further confirms its bullish trend. This alignment across various time frames indicates a well-supported uptrend and strong market sentiment."

"Investors holding the stock from lower levels are advised to book partial profits at current levels to secure gains. Additionally, trailing the stop loss at 2800 levels can help protect against potential downside risks. For fresh investments, it is prudent to wait for a dip near the 2950 levels, which could provide a more attractive entry point. This strategy balances the potential for upside gains with a controlled risk approach, leveraging the stock's demonstrated strength and ongoing bullish momentum," Deven Mehata added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.