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Premier Ltd. Stock Analysis

Small Cap
Evaluated by 242 users | BSE: 500540 | NSE: PREMIER |
Engineering - Industrial Equipments
Premier is engaged in the manufacture of automobiles and machine tools. Incorporated in 1944, Premier was first Indian company to start making automobiles. In the year 1947, the company collaborated with Chrysler Corporation, USA to manufacture Dodge cars at its Kurla plant and rolled out...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 6.82%5.77%5.43%9.21%5.43%0.04%-7.9%-9.29%-12.41%-28.26%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 15022726724116116610035.519.716.3
Y-o-Y Gr. Rt.-51.7%17.5%-9.9%-33%3%-39.9%-64.5%-44.6%-17.1%
Adjusted EPS (Rs.) 5.226.368.7718.391.56-14.09-34.13-39.83-41.9-57.99
Y-o-Y Gr. Rt.-21.8%37.9%109.7%-91.5%-1003.2%NANANANA
Book Value per Share (Rs.) 61.9464.9268.9589.6794.4477.8969.636.95-3.53-67.47
Adjusted Net Profit 15.919.326.655.94.7-42.8-104-121-127-176
Net Op. Cash Flow (Rs. Cr.) 4021.879.8-33.4-1.31688.1-7.755.2-27.7
Debt to Cash Flow from Ops 5.0313.614.45-12.59-349.812.1349.32-57.346.8-13.58
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Premier Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -21.8%-36.8%-45.3%-17.1%
Adjusted EPS -230.7%-306.1%NANA
Book Value per Share -201-193.5-1990
Share Price -29.2% -38.6% -49.7% 45.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 8.574.363.789.130.93-9.04-24.25-33.9-51.77-201.92
Operating Profit Margin (%) 23.6826.3226.64-44.820.9818.15-11.53-81.11-239.14-617.88
Net Profit Margin (%) 10.578.59.9723.22.93-25.75-103.7-340.4-646.06-1078.54
Debt to Equity 1.071.511.71.541.561.511.93.92-35.05-1.83
Working Capital Days 3072672353978158571,3914,2146,3296,784
Cash Conversion Cycle 353941721992985811,5712,8802,502
Entity Percentage Holding
Promoters 44.95%
Institutions 6.59%
Non-Institutions 48.45%
Pledged *66.8679.9886.4386.4386.4386.4386.4338.8338.8338.83
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Premier's performance infers:

Premier earnings have declined by -306.1%, whereas share price has depreciated -38.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Premier share prices over the last 10 years. Here is what we found out:

Premier share price has depreciated -30.3% annually over the past ten years.

Premier is engaged in the manufacture of automobiles and machine tools. Incorporated in 1944, Premier was first Indian company to start making automobiles.

In the year 1947, the company collaborated with Chrysler Corporation, USA to manufacture Dodge cars at its Kurla plant and rolled out India’s first car. Later the company collaborated with Fiat

Premier is engaged in the manufacture of automobiles and machine tools. Incorporated in 1944, Premier was first Indian company to start making automobiles.

In the year 1947, the company collaborated with Chrysler Corporation, USA to manufacture Dodge cars at its Kurla plant and rolled out India’s first car. Later the company collaborated with Fiat SpA, Italy to commence assembly of Fiat 500 in India.

In 1954 Fiat 1100 came in into market becoming one of the most popular models produced. Gradually the company undertook highly specialised jobs.

Premier has manufactured widest range of commercial vehicles, which includes Premier Padmini -- one of the popular cars in India.

The company has many firsts to its credits such as in 1947 the company manufactured commercial vehicles under the brand Dodge and Fargo for use by the defence department of the Government of India; It was the first company to introduce diesel taxis in Mumbai; Premier introduced the concept of Cool Cabs (A/C taxis) in Mumbai city and first Indian passenger car company to set up a Press plant at its Dombivli plant, in western India.

The company has received the ISO 9001 certification for quality management.

Products

Machine tools- Premier manufactures machine tools such as Special Purpose Machine, 3-axes and 6-axes CNC gear hobbing machine, horizontal machining centres, vertical machining centres and many more. The company markets the products under the brand name COOPER.

Vehicles- Under this, the auto major manufactures cargo carriers, ambulances, tippers and pick-up trucks. The company markets them under the name Sigma Express, Sigma Lifeline, Roadstar Tipper and Roadstar.

Engineering- Under, this the company provides total solutions in the production process staring from raw material to the finish goods inclusive of machining–line boring, honning, broaching, leak test, washing, etc.

Milestones

1944- Premier was incorporated.

1946- The company was appointed by the Government of India to act as a distributor on lease and lend military Dodge trucks.

1947- The company collaborated with Chrysler Corporation, USA to manufacture Dodge cars at its Kurla plant and rolled out India’s first car.

1950-The company entered into an agreement with Fiat Company, Italy, for the assembly and progressive manufacture of Fiat cars in India.

1951- The company took approval from Chrysler Corporation to manufacture components, such as radiators, mufflers, etc required for Dodge cars.

1954- Premier manufactured and marketed Fiat 1100 cars.

1956- Premier indigenised the production of petrol engines required for Chrysler Group cars and petrol trucks

1962- The company signed an agreement signed with Hendri Meadows, England, for manufacture of Meadows Engines to be used in the automobiles.

1963- Premier acquired land at Dombivli for setting up a press plant for sheet metal components and a factory for a new car project.

1964- The company started manufacturing of trucks and supplied the vehicles to the defence department.

1969- The company started export of commercial vehicles.

1973-The company started marketing of the cars under the brand name 'Premier'.

1982- The auto major set up a new production plant at Dombivli.

1984- The company entered into a technical collaboration agreement with Nissan for A-12 Engine for NE car.

1985-Premier launched a new model -- 118 NE.

1987- The company acquired the machine tool division manufacturing CNC machine tools at Chinchwad.

1991-The company launched Premier diesel vehicles for taxies and private use.

1995- The company entered into technical agreement with Fiat, SpA, Italy, for manufacture of Uno cars at Kurla.

1996- The company manufactured Uno car at its Kurla Plant.

1997- The company formed a joint venture with Fiat SpA, Italy, to form Ind Auto. The name was later changed to Fiat India.

1998- The company underwent a through restructuring of its business with Fiat.

Prototype Varica Van was procured from China Motors Corporation, (CMC), an affiliate of Mitsubishi.

1999- The company signed an agreement with Automobile Peugeot for TUD5-Engine.

2000- The company entered into technical assistance agreement with China Motors Corporation for Van and Pick–Up.

2001- The company's operations were moved to Pune.

2003- The company entered into contract with Tata Motors for painting van and pick-up bodies in their plant.

2009 - Premier launches compact SUV in India
2011 - Premier Wins The Fie Foundation Award At IMTEX 2011
Inauguration of Premier’s Technology Centre, Bangalore

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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