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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Premier Explosives Ltd

About the Company - Premier Explosives Ltd

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
Mr. K Rama RaoIndependent Director
Dr.(Mrs.) Kailash GuptaNon Executive Director
Lt. Gen. (Retd.) P R KumarIndependent Director
Mr. Anil Kumar MehtaIndependent Director
Mr. P R TripathiIndependent Director
Dr. A VenkataramanIndependent Director
Mrs. Shonika PrasadNon Executive Director

Premier Explosives Ltd. Share Price Update

Share PriceValue
Today₹1,405.55
Previous Day₹1,420.90

Basic Stock Data of Premier Explosives Ltd

Market Cap 1,536 Cr.
Current Price 1,429
High / Low1,688/350
Stock P/E64.5
Book Value 198
Dividend Yield0.12 %
ROCE6.72 %
ROE3.64 %
Face Value 10.0

Data Source: screener.in

Competitors of Premier Explosives Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Solar Industries India Ltd 62,258 Cr. 6,8808,499/3,45377.1 3160.12 %34.7 %33.4 % 2.00
Industry Average62 Cr677.13160.12%34.7%33.4%2

Premier Explosives Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales45493533555160526137526278
Expenses41522827484656465333444557
Operating Profit4-47674567581722
OPM %9%-8%20%18%13%9%8%11%12%13%16%27%28%
Other Income-9000011011000
Interest2222222222333
Depreciation1122222223233
Profit before tax-8-73231124131116
Tax %28%24%22%28%15%48%12%29%29%16%21%28%28%
Net Profit-6-5313111312812
EPS in Rs-5.35-4.852.511.182.390.571.101.172.330.542.187.6410.80

Premier Explosives Ltd Quarterly Chart

Premier Explosives Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales108109145149185230266241157153199202230
Expenses92100128137167201246217161147177176179
Operating Profit1710171318292024-57222651
OPM %15%9%12%8%10%13%8%10%-3%4%11%13%22%
Other Income3211-21231-8222
Interest12224456678911
Depreciation222333445691011
Profit before tax1771388231316-15-157931
Tax %28%28%29%30%32%32%35%28%34%28%23%25%
Net Profit12595615912-10-116723
EPS in Rs14.696.5711.026.016.4117.458.2110.91-8.91-9.995.236.2121.16
Dividend Payout %17%38%25%33%31%17%30%25%0%0%29%27%

Premier Explosives Ltd Profit & Loss Yearly Chart

Premier Explosives Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:-5%
3 Years:9%
TTM:13%
Compounded Profit Growth
10 Years:2%
5 Years:-4%
3 Years:40%
TTM:331%
Stock Price CAGR
10 Years:33%
5 Years:47%
3 Years:125%
1 Year:329%
Return on Equity
10 Years:4%
5 Years:1%
3 Years:2%
Last Year:4%

Premier Explosives Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital88899911111111111111
Reserves3740485357115186199186174179184202
Borrowings5131320233846286061808760
Other Liabilities282938314156645949485377170
Total Liabilities7890107113130218306296306294323359443
Fixed Assets333841413999100113112180180189200
CWIP1120241635622421
Investments0555555555555
Other Assets4346596783110185143128107134162237
Total Assets7890107113130218306296306294323359443

Premier Explosives Ltd Reserves and Borrowings Chart

Premier Explosives Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1016-210-6-2148-911020
Cash from Investing Activity -5-8-4-3-4-10-46-25-15-4-13-16
Cash from Financing Activity -25-35-31468-2323-712-4
Net Cash Flow3-3-003-31-0-0-1-0-0

Premier Explosives Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5258748184881339811010612997
Inventory Days8711292111801008284192182142335
Days Payable414741374344526886847966
Cash Conversion Cycle98123125155121145163114216205191365
Working Capital Days30515489709512489148133144161
ROCE %39%17%25%13%18%22%9%9%-4%1%6%7%

Premier Explosives Ltd Financial Efficiency Indicators Chart

Premier Explosives Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%41.33%
FIIs0.65%0.65%0.65%0.49%0.27%0.28%0.19%0.28%0.27%0.17%0.26%0.45%
DIIs4.61%3.46%3.46%3.46%3.46%3.46%3.37%3.35%3.36%3.42%3.31%7.61%
Public53.40%54.56%54.56%54.71%54.94%54.93%55.11%55.03%55.04%55.08%55.08%50.61%
No. of Shareholders9,5959,3869,7839,0949,5509,3119,1049,61210,3509,99111,18820,515

Premier Explosives Ltd Shareholding Pattern Chart

No. of Premier Explosives Ltd Shareholders

Premier Explosives Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Defence Fund4857814.3569.18
HDFC Infrastructure Fund - Regular Plan4048775.3757.66

Premier Explosives Ltd ROCE Trend

Premier Explosives Ltd EPS Trend

Premier Explosives Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)6.424.93-10.19-9.3210.57
Diluted EPS (Rs.)6.424.93-10.19-9.3210.57
Cash EPS (Rs.)15.6313.70-4.36-4.4214.66
Book Value[Excl.RevalReserv]/Share (Rs.)182.27177.34173.04183.89196.34
Book Value[Incl.RevalReserv]/Share (Rs.)182.27177.34173.04183.89196.34
Revenue From Operations / Share (Rs.)187.90185.20141.56153.01235.33
PBDIT / Share (Rs.)26.1222.096.75-3.7124.07
PBIT / Share (Rs.)16.9913.250.91-8.6219.89
PBT / Share (Rs.)8.696.50-14.09-13.9614.71
Net Profit / Share (Rs.)6.504.86-10.19-9.3210.48
NP After MI And SOA / Share (Rs.)6.424.93-10.15-9.2310.56
PBDIT Margin (%)13.9011.924.76-2.4210.22
PBIT Margin (%)9.047.150.64-5.638.45
PBT Margin (%)4.623.50-9.95-9.126.24
Net Profit Margin (%)3.452.62-7.19-6.094.45
NP After MI And SOA Margin (%)3.412.66-7.17-6.034.48
Return on Networth / Equity (%)3.542.79-5.90-5.055.41
Return on Capital Employeed (%)8.536.840.47-4.309.09
Return On Assets (%)1.941.64-3.70-3.233.80
Long Term Debt / Equity (X)0.010.020.050.010.03
Total Debt / Equity (X)0.420.410.290.280.11
Asset Turnover Ratio (%)0.590.640.500.510.79
Current Ratio (X)1.121.121.151.302.14
Quick Ratio (X)0.550.780.730.831.60
Inventory Turnover Ratio (X)1.832.521.772.403.74
Dividend Payout Ratio (NP) (%)23.340.000.000.0028.23
Dividend Payout Ratio (CP) (%)9.640.000.000.0020.23
Earning Retention Ratio (%)76.660.000.000.0071.77
Cash Earning Retention Ratio (%)90.360.000.000.0079.77
Interest Coverage Ratio (X)3.153.271.03-0.694.64
Interest Coverage Ratio (Post Tax) (X)1.781.720.73-0.743.02
Enterprise Value (Cr.)510.95407.94218.71107.52259.91
EV / Net Operating Revenue (X)2.532.051.440.651.03
EV / EBITDA (X)18.1917.1830.14-26.9210.04
MarketCap / Net Operating Revenue (X)2.151.681.110.401.04
Retention Ratios (%)76.650.000.000.0071.76
Price / BV (X)2.231.760.910.341.26
Price / Net Operating Revenue (X)2.151.681.110.401.04
EarningsYield0.010.01-0.06-0.140.04

Premier Explosives Ltd Profitability Ratios (%)

Premier Explosives Ltd Liquidity Ratios

Premier Explosives Ltd Liquidity Ratios (%)

Premier Explosives Ltd Interest Coverage Ratios (X)

Premier Explosives Ltd Valuation Ratios

Fair Value / Intrinsic Value of Premier Explosives Ltd

Fair Value: ₹465.42

The stock is overvalued by 67.43% compared to the current price ₹1429

*Investments are subject to market risks

Strength and Weakness of Premier Explosives Ltd

StrengthWeakness
  1. The company has higher reserves (127.69 cr) compared to borrowings (41.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (182.62 cr) and profit (9.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 8.48 and average Dividend Yield of 3.93%.
  2. The stock has a low average ROCE of 13.50%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 99.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 168.42, which may not be favorable.

Should I Buy Premier Explosives Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Premier Explosives Ltd:
    1. Net Profit Margin: 3.45%
      • 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: 8.53% (Industry Average ROCE: 34.7%)
      • 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. Interest Coverage Ratio (Post Tax): 1.78
      • 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.
    4. Quick Ratio: 0.55
      • 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.
    5. ✓ Stock P/E: 64.5 (Industry average Stock P/E: 74.5)
      • 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.
    6. ✓ Total Debt / Equity: 0.42
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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