Premier Explosives opened today morning with a gain of over 7.5% at Rs.198. The stock has underperformed the Sensex by 35.5%.
The company is a prominent player in manufacturing solid propellants for India's prestigious missile programmes like Akash, Astra, and LRSAM.
The company yesterday received an order from Bharat Dynamics for supply of solid propellants for Medium Range Surface to Air Missile (MRSAM) for a value of Rs. 15 crore to be executed within a period of 14 months.
This is not a material supply order.
MRSAM (along with LRSAM, QRSAM, etc.) has been developed jointly by Israel Aerospace Industries, Israel and DRDO, India. The company was associated with the project since inception and supplied solid propellants to DRDO during the development phase. Now this missile is being inducted by Indian Army with integration being done by BDL.
The order received is the first one from BDL upon induction of the missile. Currently, Premier Explosives is the sole supplier of solid propellant for this missile.