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Analysed Explosive Stock bound to Benefit from Terror Attack

Posted By On 7:00 PM Under
1. I am going to let you know a stock which is going to get benefitted by virtue of terror threat looming large on the country and same is available at throwaway price and it is rightly said that in bad times even good scrips also suffer. As a disclosure I have exposure in the said stock.

2. Stock is Premier Explosives which has married with M/s. VXL Technologies Ltd, Faridabad, called ‘VTL M/s. VXL Technologies Ltd, Faridabad for manufacture of pyrotechnic devices, fuzes etc., used for defence. Moreover it has its own
company i.e. “Premier Wire Products Ltd” with 60% equity as an ancillary Unit and the same wil facilitate in production of of detonators.

3. The said stock will see action in medium term as it is focussed now on defence deals. Moreover its products find use in mining sector and mining sector is picking up and same is corroborated by cement industry uptrend. It will also benefit by virtue of renewed thrust for infrastructure segment.

(c) The Company after selling the Mushroom Division is now fully focussed on the defence deals. It is reported that the company has purchased some land for some projects. Since the mining sector has started to perform again, Premier Explosives Ltd is expected to do well.

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