Premier Explosives Ltd Stock Analysis

BSE: 526247 | NSE: PREMEXPLN | Chemicals | Small Cap

BSE Share Price 06-Dec-2022 18:01
439.70 6.85 (1.58%)

DeciZen - Make an Informed Decision on Premier Explosives

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Premier Explosives Price Chart

P/E Ratio (SA) :
85.08
Market Cap :
472.8 Cr.
52-wk low :
231.8
52-wk high :
532
Bole Toh?

1. Is Premier Explosives Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Premier Explosives Ltd is a below average quality company.

2. Is Premier Explosives Ltd undervalued or overvalued?

The key valuation ratios of Premier Explosives Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Premier Explosives Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Premier Explosives Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Premier Explosives:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Premier Explosives Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 10.2%13.5%6.6%9.2%14.4%6.4%6.7%-1.8%0.2%4%-
Value Creation Index -0.3-0.0-0.5-0.30.0-0.5-0.5-1.1-1.0-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 109145149185231266241157153199223
YoY Gr. Rt. %-32.9%2.8%23.8%24.7%15.3%-9.4%-35%-2%29.8%-
Adj EPS 5.48.63.85.816.98.711.4-8.1-4.34.85.2
YoY Gr. Rt. %-59.4%-56%53.7%191.2%-48.8%31.5%-171.2%NANA-
BVPS (₹) 59.667.569.973.9139.7185194.7182.7172.1176.7178.4
Adj Net Profit 4.47.23.45.2159.212.3-8.7-4.65.16
Cash Flow from Ops. 0.96.1-1.910.3-6.4-21.448.5-8.610.60.2-
Debt/CF from Ops. 14.42.2-10.52.2-6-2.10.6-75.8395.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.9%-2.9%-6.2%29.8%
Adj EPS -1.4%-22.4%-25.3%NA
BVPS 12.84.8-3.22.7
Share Price 20% 2% 45.7% 84.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 9.313.65.68.115.85.76-4.3-2.42.72.9
Op. Profit Mgn % 7.49.76.67.712.87.910.1-2.34.311.210
Net Profit Mgn % 44.92.22.86.53.55.1-5.6-32.62.5
Debt to Equity 0.30.20.30.40.30.20.10.30.30.40
Working Cap Days 126115135126140192225303284224220
Cash Conv. Cycle 707396888612113216515913312

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 2.90%

Sales growth is good in last 4 quarters at 35.55%

Sales growth has been subdued in last 3 years -6.15%

Net Profit has been subdued in last 3 years -25.29%

Latest Financials - Premier Explosives Ltd.

Standalone Consolidated
TTM EPS (₹) 5.2 4.5
TTM Sales (₹ Cr.) 223 223
BVPS (₹.) 178.4 178
Reserves (₹ Cr.) 181 181
P/BV 2.46 2.48
PE 85.08 98.74
From the Market
52 Week Low / High (₹) 231.80 / 532.00
All Time Low / High (₹) 1.00 / 539.35
Market Cap (₹ Cr.) 473
Equity (₹ Cr.) 10.8
Face Value (₹) 10
Industry PE 34

Management X-Ray of Premier Explosives :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Premier Explosives

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Premier Explosives Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Premier Explosives on 06-Dec-2022 18:01 is : 439.7.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 06-Dec-2022 18:01 the market cap of Premier Explosives stood at ₹ 472.8.
The latest PE ratio of Premier Explosives as of 06-Dec-2022 18:01 is 85.08.
The latest PB ratio of Premier Explosives as of 06-Dec-2022 18:01 is 2.46
The 52-week high of Premier Explosives is ₹ 532.0 and the 52-week low is ₹ 231.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Premier Explosives is ₹ 223.5 ( Cr.) .

About Premier Explosives Ltd

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
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