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Premier Explosives Limited (IN:PREMEXPLN)
:PREMEXPLN
India Market
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Premier Explosives Limited (PREMEXPLN) AI Stock Analysis

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IN:PREMEXPLN

Premier Explosives Limited

(PREMEXPLN)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
₹697.00
▲(28.61% Upside)
Action:Reiterated
Date:06/30/26
The score is held back primarily by the sharp deterioration in 2026 cash flows (negative operating and free cash flow) and a very high P/E valuation (~94.9). These are partially offset by a strong, improving balance sheet with low leverage and better profitability versus earlier years. Technical signals cannot be incorporated because the required indicators and moving averages were not provided.
Positive Factors
Low Leverage / Strong Balance Sheet
The company’s very low and improving leverage provides a durable financial cushion against cyclicality. Low debt reduces refinancing risk, supports bidding on multi-year defence contracts and capital spending, and gives time to restore cash generation if operating performance softens.
Negative Factors
Sharp Cash Flow Deterioration
The reversal to negative operating and free cash flow materially raises funding risk despite reported profits. Persisting weak cash conversion would constrain capex, working-capital support for large tenders, and may force external financing, reducing financial flexibility over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
The company’s very low and improving leverage provides a durable financial cushion against cyclicality. Low debt reduces refinancing risk, supports bidding on multi-year defence contracts and capital spending, and gives time to restore cash generation if operating performance softens.
Read all positive factors

Premier Explosives Limited (PREMEXPLN) vs. iShares MSCI India ETF (INDA)

Premier Explosives Limited Business Overview & Revenue Model

Company Description
Established in 1980 and based in Secunderabad, India, Premier Explosives Limited (PEL) is a leading manufacturer and supplier of high-energy materials and related products. The company's extensive portfolio includes a wide range of explosives, suc...
How the Company Makes Money
Premier Explosives Limited primarily makes money by manufacturing and supplying explosives and energetic materials/components and earning revenue from (1) commercial explosives supplied to mining, quarrying, and infrastructure customers for blasti...

Premier Explosives Limited Financial Statement Overview

Summary
Balance sheet strength is a key positive (debt-to-equity ~0.11 and improving), and profitability has improved versus prior loss years (latest net margin ~11.8%, ROE ~15.8%). However, operating performance weakened in 2026 with a ~15.2% revenue decline and margin compression, and the most significant issue is cash conversion: operating cash flow and free cash flow turned sharply negative in 2026, increasing funding risk despite reported profits.
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue3.88B4.17B2.72B2.02B1.99B
Gross Profit838.83M1.79B1.55B1.15B979.44M
EBITDA755.62M579.76M590.80M280.66M220.87M
Net Income458.13M286.95M283.57M69.07M53.00M
Balance Sheet
Total Assets4.83B5.28B4.42B3.56B3.22B
Cash, Cash Equivalents and Short-Term Investments600.72M1.01B202.84M10.95M11.66M
Total Debt323.33M406.49M614.54M829.35M778.25M
Total Liabilities1.93B2.81B2.20B1.60B1.31B
Stockholders Equity2.89B2.46B2.20B1.95B1.89B
Cash Flow
Free Cash Flow-301.28M1.05B555.63M68.19M-165.85M
Operating Cash Flow-22.96M1.18B789.56M211.20M-21.55M
Investing Cash Flow-290.14M-111.74M-252.91M-156.71M-108.49M
Financing Cash Flow-110.04M-343.49M-338.42M-55.74M125.80M

Premier Explosives Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price541.95
Price Trends
50DMA
662.60
Positive
100DMA
567.47
Positive
200DMA
561.27
Positive
Market Momentum
MACD
12.94
Positive
RSI
45.47
Neutral
STOCH
11.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PREMEXPLN, the sentiment is Neutral. The current price of 541.95 is below the 20-day moving average (MA) of 744.79, below the 50-day MA of 662.60, and below the 200-day MA of 561.27, indicating a neutral trend. The MACD of 12.94 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PREMEXPLN.

Premier Explosives Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹1.65T98.370.08%30.30%38.71%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
₹36.94B80.690.10%-6.97%59.59%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PREMEXPLN
Premier Explosives Limited
687.15
154.75
29.07%
IN:SOLARINDS
Solar Industries India Limited
18,236.80
3,027.25
19.90%

Premier Explosives Limited Corporate Events

Public Announcement on Substantial Acquisition in Premier Explosives
Jul 10, 2026
Cumulative Capital Private Limited, acting as the manager to an offer, has issued a public announcement addressed to the public shareholders of Premier Explosives Limited under India’s takeover regulations. The announcement relates to a subs...
Apollo Micro Systems to Acquire 41.33% Stake in Premier Explosives, Triggers Open Offer
Jul 9, 2026
Premier Explosives Limited’s board has noted a share purchase agreement under which Apollo Micro Systems Limited will acquire 2,22,21,735 equity shares from the AKS Family Trust, representing 41.33% of the company’s issued voting share...
Apollo Micro Systems to acquire 41.33% stake in Premier Explosives for ₹1,550 crore
Jul 9, 2026
Apollo Micro Systems Limited has signed a definitive share purchase agreement to acquire 41.33% promoter stake in Premier Explosives Limited for about INR 1,550 crore in an all-cash transaction. The deal, expected to close by the third quarter of ...
Premier Explosives Shares Q4 and FY26 Results Presentation With Investors
May 29, 2026
Premier Explosives Limited has released an investor presentation covering its financial results for the fourth quarter and full year ended 31 March 2026. The presentation has been shared in conjunction with a scheduled conference call with investo...
Premier Explosives Cancels Rs 18.90 Crore Defence Export Order After Licence Denial
Apr 22, 2026
Premier Explosives Limited has announced the termination of an export order worth Rs 18.90 crore for the supply of defence explosives to an international customer, after the Government of India did not grant the required export licence for the pro...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 30, 2026