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Premier Explosives Limited
(PREMEXPLN)
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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)
Market Cap
₹36.94B
Dividend Yield0.1%
Average Volume (3M)120.50K
Price to Earnings (P/E)80.7
Beta (1Y)1.61
Revenue Growth-6.97%
EPS Growth59.59%
CountryIN
Employees841
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)8.52
Shares Outstanding53,761,196
10 Day Avg. Volume119,926
30 Day Avg. Volume120,502
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)7.10
Price to Sales (P/S)5.28
P/FCF Ratio-68.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.88B | 4.17B | 2.72B | 2.02B | 1.99B |
| Gross Profit | 838.83M | 1.79B | 1.55B | 1.15B | 979.44M |
| EBITDA | 755.62M | 579.76M | 590.80M | 280.66M | 220.87M |
| Net Income | 458.13M | 286.95M | 283.57M | 69.07M | 53.00M |
Balance Sheet | |||||
| Total Assets | 4.83B | 5.28B | 4.42B | 3.56B | 3.22B |
| Cash, Cash Equivalents and Short-Term Investments | 600.72M | 1.01B | 202.84M | 10.95M | 11.66M |
| Total Debt | 323.33M | 406.49M | 614.54M | 829.35M | 778.25M |
| Total Liabilities | 1.93B | 2.81B | 2.20B | 1.60B | 1.31B |
| Stockholders Equity | 2.89B | 2.46B | 2.20B | 1.95B | 1.89B |
Cash Flow | |||||
| Free Cash Flow | -301.28M | 1.05B | 555.63M | 68.19M | -165.85M |
| Operating Cash Flow | -22.96M | 1.18B | 789.56M | 211.20M | -21.55M |
| Investing Cash Flow | -290.14M | -111.74M | -252.91M | -156.71M | -108.49M |
| Financing Cash Flow | -110.04M | -343.49M | -338.42M | -55.74M | 125.80M |
Premier Explosives Limited Technical Analysis
Neutral
541.95
Price Trends
662.60
Positive
567.47
Positive
561.27
Positive
Market Momentum
12.94
Positive
45.47
Neutral
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
UnderperformOutperform
Sector (55)
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.