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Last Updated on: 06 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Premier Explosives Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 24, 2024, 10:54 am

Market Cap 2,482 Cr.
Current Price 462
High / Low909/221
Stock P/E91.3
Book Value 40.9
Dividend Yield0.11 %
ROCE18.0 %
ROE13.5 %
Face Value 2.00
PEG Ratio0.91

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Premier Explosives Ltd

Competitors of Premier Explosives Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Premier Explosives Ltd 2,482 Cr. 462909/22191.3 40.90.11 %18.0 %13.5 % 2.00
Solar Industries India Ltd 96,019 Cr. 10,61113,300/4,993104 3650.08 %32.5 %30.9 % 2.00
Industry Average49,250.50 Cr5,536.5097.65202.950.10%25.25%22.20%2.00

All Competitor Stocks of Premier Explosives Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales35.4432.8155.0650.8160.4551.7760.6437.3052.3261.9578.4244.5686.79
Expenses28.3626.8248.1446.3655.5145.9753.4332.6044.2145.2956.5539.6771.70
Operating Profit7.085.996.924.454.945.807.214.708.1116.6621.874.8915.09
OPM %19.98%18.26%12.57%8.76%8.17%11.20%11.89%12.60%15.50%26.89%27.89%10.97%17.39%
Other Income0.420.060.400.780.660.450.800.780.130.300.412.880.46
Interest1.851.861.871.792.002.112.072.222.802.883.332.332.25
Depreciation2.192.422.412.292.262.372.402.582.472.702.793.062.97
Profit before tax3.461.773.041.151.341.773.540.682.9711.3816.162.3810.33
Tax %21.97%28.25%15.46%47.83%11.94%29.38%28.81%16.18%21.21%27.86%28.16%29.83%35.82%
Net Profit2.701.272.570.611.181.262.510.582.348.2111.611.676.63
EPS in Rs2.511.182.390.571.101.172.330.542.187.6410.801.556.17

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales108109145149185230266241157153199202237
Expenses92100128137167201246217161147177176186
Operating Profit1710171318292024-57222652
OPM %15%9%12%8%10%13%8%10%-3%4%11%13%22%
Other Income3211-21231-8224
Interest12224456678911
Depreciation222333445691011
Profit before tax1771388231316-15-157933
Tax %28%28%29%30%32%32%35%28%34%28%23%25%
Net Profit12595615912-10-116724
EPS in Rs14.696.5711.026.016.4117.458.2110.91-8.91-9.995.236.2122.17
Dividend Payout %17%38%25%33%31%17%30%25%0%0%29%27%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-58.33%80.00%-44.44%20.00%150.00%-40.00%33.33%-183.33%-10.00%154.55%16.67%
Change in YoY Net Profit Growth (%)0.00%138.33%-124.44%64.44%130.00%-190.00%73.33%-216.67%173.33%164.55%-137.88%

Premier Explosives Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:2%
3 Years:21%
TTM:38%
Compounded Profit Growth
10 Years:11%
5 Years:19%
3 Years:166%
TTM:99%
Stock Price CAGR
10 Years:26%
5 Years:70%
3 Years:114%
1 Year:97%
Return on Equity
10 Years:5%
5 Years:3%
3 Years:7%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital8899911111111111111
Reserves40485357115186199186174179184210
Borrowings131320233846286061808766
Other Liabilities2938314156645949485377159
Total Liabilities90107113130218306296306294323359445
Fixed Assets3841413999100113112180180189198
CWIP120241635622423
Investments555555555555
Other Assets46596783110185143128107134162238
Total Assets90107113130218306296306294323359445

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 16-210-6-2148-91102079
Cash from Investing Activity -8-4-3-4-10-46-25-15-4-13-16-25
Cash from Financing Activity 5-35-31468-2323-712-4-34
Net Cash Flow-3-003-31-0-0-1-0-020

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow17.00-3.004.00-7.00-5.00-9.00-26.00-4.00-65.00-54.00-58.00-61.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days5874818488133981101061299798
Inventory Days11292111801008284192182142335290
Days Payable474137434452688684796651
Cash Conversion Cycle123125155121145163114216205191365336
Working Capital Days51548970951248914813314416194
ROCE %17%25%13%18%22%9%9%-4%1%6%7%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%
FIIs0.27%0.28%0.19%0.28%0.27%0.17%0.26%0.45%0.32%0.27%0.62%0.36%
DIIs3.46%3.46%3.37%3.35%3.36%3.42%3.31%7.61%9.27%10.27%9.43%8.36%
Public54.94%54.93%55.11%55.03%55.04%55.08%55.08%50.61%49.08%48.11%48.60%49.94%
No. of Shareholders9,5509,3119,1049,61210,3509,99111,18820,51524,06024,93363,79480,398

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Defence Fund485,7814.3569.18485,7812024-10-270%
HDFC Infrastructure Fund - Regular Plan404,8775.3757.66485,7812024-10-27-16.65%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)26.376.424.93-10.19-9.32
Diluted EPS (Rs.)26.376.424.93-10.19-9.32
Cash EPS (Rs.)37.1415.6313.70-4.36-4.42
Book Value[Excl.RevalReserv]/Share (Rs.)205.99182.27177.34173.04183.89
Book Value[Incl.RevalReserv]/Share (Rs.)205.99182.27177.34173.04183.89
Revenue From Operations / Share (Rs.)252.71187.90185.20141.56153.01
PBDIT / Share (Rs.)58.2626.1222.096.75-3.71
PBIT / Share (Rs.)47.5416.9913.250.91-8.62
PBT / Share (Rs.)37.778.696.50-14.09-13.96
Net Profit / Share (Rs.)26.436.504.86-10.19-9.32
NP After MI And SOA / Share (Rs.)26.376.424.93-10.15-9.23
PBDIT Margin (%)23.0513.9011.924.76-2.42
PBIT Margin (%)18.819.047.150.64-5.63
PBT Margin (%)14.944.623.50-9.95-9.12
Net Profit Margin (%)10.453.452.62-7.19-6.09
NP After MI And SOA Margin (%)10.433.412.66-7.17-6.03
Return on Networth / Equity (%)12.873.542.79-5.90-5.05
Return on Capital Employeed (%)19.828.536.840.47-4.30
Return On Assets (%)6.411.941.64-3.70-3.23
Long Term Debt / Equity (X)0.050.010.020.050.01
Total Debt / Equity (X)0.270.420.410.290.28
Asset Turnover Ratio (%)0.680.590.640.500.51
Current Ratio (X)1.271.121.121.151.30
Quick Ratio (X)0.790.550.780.730.83
Inventory Turnover Ratio (X)1.201.832.521.772.40
Dividend Payout Ratio (NP) (%)0.0023.340.000.000.00
Dividend Payout Ratio (CP) (%)0.009.640.000.000.00
Earning Retention Ratio (%)0.0076.660.000.000.00
Cash Earning Retention Ratio (%)0.0090.360.000.000.00
Interest Coverage Ratio (X)5.963.153.271.03-0.69
Interest Coverage Ratio (Post Tax) (X)3.711.781.720.73-0.74
Enterprise Value (Cr.)1665.86510.95407.94218.71107.52
EV / Net Operating Revenue (X)6.132.532.051.440.65
EV / EBITDA (X)26.5918.1917.1830.14-26.92
MarketCap / Net Operating Revenue (X)6.012.151.681.110.40
Retention Ratios (%)0.0076.650.000.000.00
Price / BV (X)7.412.231.760.910.34
Price / Net Operating Revenue (X)6.012.151.681.110.40
EarningsYield0.010.010.01-0.06-0.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Premier Explosives Ltd as of November 6, 2024 is: 504.67

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 6, 2024, Premier Explosives Ltd is Undervalued by 9.24% compared to the current share price ₹462.00

Intrinsic Value of Premier Explosives Ltd as of November 6, 2024 is: 1,009.84

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 6, 2024, Premier Explosives Ltd is Undervalued by 118.58% compared to the current share price ₹462.00

Last 5 Year EPS CAGR: 100.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (135.92 cr) compared to borrowings (44.58 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (183.15 cr) and profit (9.54 cr) over the years.
  1. The stock has a low average ROCE of 11.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 104.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 188.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Premier Explosives Ltd:
    1. Net Profit Margin: 10.45%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.82% (Industry Average ROCE: 25.25%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.87% (Industry Average ROE: 22.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.71
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.79
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 91.3 (Industry average Stock P/E: 97.65)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.27
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Premier Explosives Ltd. is a Public Limited Listed company incorporated on 14/02/1980 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L24110TG1980PLC002633 and registration number is 002633. Currently company belongs to the Industry of Industrial Explosives. Company’s Total Operating Revenue is Rs. 199.13 Cr. and Equity Capital is Rs. 10.75 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Industrial ExplosivesPremier House, Secunderabad Telangana 500015investors@pelgel.com
http://www.pelgel.com
Management
NamePosition Held
Dr. A N GuptaChairman
Mr. T V ChowdaryManaging Director
Mr. Y Durga Prasad RaoDirector - Operations
Dr.(Mrs.) Kailash GuptaNon Executive Director
Mrs. Shonika PrasadNon Executive Director
Lt. Gen. (Retd.) P R KumarIndependent Director
Dr. Narendra Kumar NandaIndependent Director
Dr. V G SekaranIndependent Director
Mr. Seshagiri RaoIndependent Director
Dr.(Mrs.) Kumuda RaghavanIndependent Director

FAQ

What is the latest fair value of Premier Explosives Ltd?

The latest fair value of Premier Explosives Ltd is ₹504.67.

What is the Market Cap of Premier Explosives Ltd?

The Market Cap of Premier Explosives Ltd is 2,482 Cr..

What is the current Stock Price of Premier Explosives Ltd as on 06 November 2024?

The current stock price of Premier Explosives Ltd as on 06 November 2024 is 462.

What is the High / Low of Premier Explosives Ltd stocks in FY 2024?

In FY 2024, the High / Low of Premier Explosives Ltd stocks is 909/221.

What is the Stock P/E of Premier Explosives Ltd?

The Stock P/E of Premier Explosives Ltd is 91.3.

What is the Book Value of Premier Explosives Ltd?

The Book Value of Premier Explosives Ltd is 40.9.

What is the Dividend Yield of Premier Explosives Ltd?

The Dividend Yield of Premier Explosives Ltd is 0.11 %.

What is the ROCE of Premier Explosives Ltd?

The ROCE of Premier Explosives Ltd is 18.0 %.

What is the ROE of Premier Explosives Ltd?

The ROE of Premier Explosives Ltd is 13.5 %.

What is the Face Value of Premier Explosives Ltd?

The Face Value of Premier Explosives Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Premier Explosives Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE