On Thursday, May 30, Premier Explosives Ltd. (BSE: PREMEXPLN), which is a small-cap defence stock, announced that it will execute a split of its equity shares. The company also announced a recommendation for a dividend at INR 2.5 per share. Last trading price of Premier Explosives Ltd. as on May 31, 2024 on BSE was INR 2525.00 per share.
Also Read | India to become $4 trillion economy in FY25: Sanjeev Sanyal
Rise of 180.08% in Q4 profits
Premier Explosives Ltd. has reported a huge increase in net profit for the quarter ending on March 31, 2024. The profits soared from INR 6.75 crore to INR 2.41 crore, that is, by 180.08% in the same quarter of the previous year (FY ending on March 31, 2023). The company’s sales also saw a significant rise of 65.88%. The sales rose from 86.79 crore for the March 31, 2024 quarter as compared to INR 52.32 crore in March 2023. The revenue from operations for the Premier Explosives have reached INR 87.24 crore in the latest quarter. This is a notable increase from INR 52.45 crore in the corresponding quarter of the previous year.
Split of Shares
According to the company, the split of existing shares will be in the ratio of 5:1. Any investor holding 1 equity share as on record date will receive 5 equity shares. Each equity share having a face value of INR 10 will be sub-divided into 5 equity shares with a face value of INR 2. The record date is set on June 21, 2024.
Declaration of Dividend
According to Premier Explosives’ exchange filing on May 30, 2024, it has recommended a dividend of INR 2.50 per share having the face value of INR 10 (for FY ended on March 31, 2024). This recommendation will be presented for approval by the shareholders in the upcoming 44th Annual General Meeting (AGM). If the shareholders approve this dividend, it will be paid within 30 days of approval. The date of the AGM and the record date for the payment of dividend will be announced by the company later.
Share Performance
Premier Explosives Ltd. has shown a remarkable performance in the share market on BSE. With a 52-week low of INR 412.45 on June 1, 2023 and a 52-week high of INR 2,789.00 on April 29, 2024 the company has seen a vast jump in its share prices. PEL has a market capitalization of INR 2,714.94 crore. Over the past six months, Premier Explosives’ stock prices have surged by 77%. In the last two years, the stock has provided a huge return of 661%, and over the past three years, the share prices of Premier Explosives have skyrocketed by 1,524%. This company has been successful in delivering substantial returns to its shareholders.
About Author
This article has been written by Mr Radhesh Tarang Shah, who is a third-year management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
