X

Premier Explosives Ltd. Stock Analysis

Small Cap
Evaluated by 437 users | BSE: 526247 | NSE: PREMEXPLN |
Chemicals
Premier Explosives Limited (PEL) is one of the major companies manufacturing the entire range of explosives and accessories for the civil requirement. Starting as a Small Scale unit in 1980, it was founded by A.N.Gupta, a Gold Medallist in Mining Engineering. Its current turnover is about Rs....

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 33.7%25.3%24.35%10.24%13.53%6.61%9.21%14.43%6.4%6.73%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 88.995.1108109145149185231266241
Y-o-Y Gr. Rt.-7%13.9%1%32.9%2.8%23.8%24.7%15.3%-9.4%
Adjusted EPS (Rs.) 13.3810.8512.545.398.593.785.8116.928.6611.39
Y-o-Y Gr. Rt.--18.9%15.6%-57%59.4%-56%53.7%191.2%-48.8%31.5%
Book Value per Share (Rs.) 34.244.255.9859.6267.5469.8973.88139.69184.98194.73
Adjusted Net Profit 10.98.810.24.47.23.45.2159.212.3
Net Op. Cash Flow (Rs. Cr.) 8.312.69.90.96.1-1.910.3-6.4-21.448.5
Debt to Cash Flow from Ops 1.140.320.4714.422.17-10.482.23-6.01-2.130.57
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 Explosives Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.7%10.6%9.2%-9.4%
Adjusted EPS -1.8%5.8%25.2%31.5%
Book Value per Share 21.323.638.15.3
Share Price 7.3% -18.2% -35.1% -31.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 41.6627.5425.039.3213.595.628.0815.845.726.01
Operating Profit Margin (%) 24.3916.4914.437.419.736.557.7112.767.8710.07
Net Profit Margin (%) 12.239.279.4144.942.242.786.53.475.08
Debt to Equity 0.340.110.10.260.230.320.350.310.230.13
Working Capital Days 103134138126115135126140192225
Cash Conversion Cycle 1747627073968886121132
Entity Percentage Holding
Promoters 41.33%
Institutions 7.90%
Non-Institutions 50.77%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Premier Explosives Ltd. earnings have grown by 5.8%, whereas share price has depreciated -18.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

Premier Explosives Ltd. share price has depreciated -0% annually over the past ten years.

Premier Explosives Limited (PEL) is one of the major companies manufacturing the entire range of explosives and accessories for the civil requirement. Starting as a Small Scale unit in 1980, it was founded by A.N.Gupta, a Gold Medallist in Mining Engineering. Its current turnover is about Rs. 600 million per year. The export earnings of the company are about Rs. 200 million per year.

PEL is the first manufacturer in India to deploy totally indigenous technology. PEL today has the widest

Premier Explosives Limited (PEL) is one of the major companies manufacturing the entire range of explosives and accessories for the civil requirement. Starting as a Small Scale unit in 1980, it was founded by A.N.Gupta, a Gold Medallist in Mining Engineering. Its current turnover is about Rs. 600 million per year. The export earnings of the company are about Rs. 200 million per year.

PEL is the first manufacturer in India to deploy totally indigenous technology. PEL today has the widest range of products and technologies in the manufacture of Explosives & Accessories. These include Emulsion and Slurry explosives, LD cartridge explosives, Bulk Explosives, Small-dia non-permitted explosives, Permitted explosives, Cast Boosters, Pillow-packs for secondary blasting; Detonating Fuse of various core-loads, Plain detonators, Instantaneous Electric Detonators, Electric Delay Detonators, Permitted Detonators, Cord Relays and Amardet NoN Electirc Shock-tube Detonators.

PEL has constantly innovated and upgraded its products and technology to offer “state-of-the-art” products to its valued customers both in India and abroad. Commitment to quality, Safety, Health & Environment are the way of life at PEL.

PEL’s R &D facility is recognized by the Centre for Scientific and Industrial Research (CSIR), Government of India, as an established research centre. It is also recognized as a research base for Ph.D. work by the Osmania University, Andhra Pradesh.

The wide distribution network comprising of magazines Consignment Agents, Dealers and Handling Agents, located across the country, ensure ready stock and prompt delivery to customers even in remote locations.

There is a team of highly experienced and qualified sales and Technical Service engineers to provide full support on applications, safety and handling of explosives and accessories to customers. This is backed by a team of export mining/blasting engineers at the Technical Services group located at headquarters.

Apart from providing regular support services to customers, PEL also undertakes complete drilling & blasting contracts in collaboration with associates having resources of drilling and excavation equipment & manpower.

Product range of the company includes:

Manufacturers of the entire range of Explosives and Accessories in India.

  • Plain Detonators
  • Instant Electric Detonators
  • Copper Electric Detonators
  • Copper Delay Detonators
  • Short Delay Detonators
  • Ling Delay Detonators
  • Cord Delay Detonators
  • Ultra Safe Green Detonators
  • Seismic Electric Detonators
  • Non Electric Detonators
  • Detonating Cord - Premier Cord is a reliable, flexible, waterproof fuse with high tensile strength and abrasion resistance. It is an ideal means of transmitting detonation to an explosive charge

Milestones

  • Incorporation of Company 14th Feb. -1980
  • Start of Explosives Production  -1980
  • Start of Detonating Fuse Production -1984
  • Start of Detonators Production -1990
  • Start of Bulk Explosives Production -1991
  • Recognition of R&D centre by Department of Science & Technology, Government of India -1993
  • Start of Mushrooms production -1997
  • ISO Certification -2001
  • Mr. A.N.Gupta  appointed as Chairman, Explosives Dev. Council, Min. of Commerce, Govt. of India -2002
  • CE Certification for Detonating Cord -2003
  • Start of Premier Research Development Centre -2004
  • Start of Special Products Division -2006
  • CE Certification for Detonators -2007
  • Hive off of Mushroom division -2007
  • Operation & Maintenance Contract with SHAR -2007
  • Start of backward integration unit as a subsidiary Company “Premier Wire Products Limited” for manufacture of G.I. Wire. Company started commercial production on 13.02.2009

Achievements/ recognition:

  • Best R & D effort Award for the year 2006 from All India Manufacturers Association (Andhra Pradesh State Board)  2007
  • Highest rating in the ranking of India’s Top 500 Manufacturing Small and Mid sized company rating  2007
  • “Industry Appreciation” Award by NSTL, Vizag.  2007
  • “Best Greenery Development” award from Andhra Pradesh Pollution Control Board (PEL-PDK)  2006
  • “Certificate of Appreciation” by Rotary Club of Secunderabad to Mr.A.N.Gupta for Drinking Water Project & organizing Medical Camps at remove villages  2006
  • “Best Technology Development” in R&D Award for the year 2004-05 by Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI), A.P. 2006
  • “Best Greenery Development” award from Andhra Pradesh Pollution Control Board (PEL-PDK)  2004
  • Certificate of Export Recognition by Chemicals & Allied Products Export Promotion Council 2004
  • Mr.A.N.Gupta CMD elected President of Explosives Manufactures Association of India.  2003
  • “Best Industrial Relations” award received from Labour Department, Govt. of A.P. (PEL-GDK) 2003
  • Mr.A.N.Gupta CMD appointed as Chairman of Explosives Development Council by Ministry of Commerce & Industry, Govt. Of India.  Feb. 2002.
  • Best Export performance award by VSEZ Vishakapatnam Special Economic Zone (VSEZ) 2001-2002
  • “Best Industrial Relations” award received from Labour Department, Govt. of A.P. (PEL-GDK)  1989
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

Callback