Premier Explosives Limited (PREMEXPLN) AI Stock Analysis

• Market Cap: ₹25.20B
• Dividend Yield: 0.1%
• Average Volume (3M): 120.50K
• Price to Earnings (P/E): 58.6
• Beta (1Y): 1.60
• Revenue Growth: 48.22%
• EPS Growth: 90.63%
• Country: IN
• Employees: 841
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.13
• Shares Outstanding: 53,761,196
• 10 Day Avg. Volume: 119,926
• 30 Day Avg. Volume: 120,502
• PEG Ratio: 51.91
• Price to Book (P/B): 8.05
• Price to Sales (P/S): 4.74
• P/FCF Ratio: 18.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹610.00
• Price Target Upside: 12.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹479.00 ▼(-11.62% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Premier Explosives Limited's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and a high valuation. The company's robust revenue growth and effective cost management are significant strengths. However, the current market momentum and high P/E ratio suggest caution for potential investors.

Positive Factors

Improving cash generation and robust free cash flow

Sustained improvement in operating cash flow and strong free cash flow provide durable financial flexibility. This strengthens the firm's ability to fund capex, meet working-capital needs for large tenders, pay down debt or support strategic investments without relying on external financing over the next several quarters.

Reduced leverage and solid equity base

An improving debt-to-equity ratio and a solid equity base enhance long-term resilience to cyclical demand in mining and defense. Lower leverage lowers refinancing risk and interest burden, improving strategic optionality for investments, certifications, or scaling capacity over the medium term.

Operational efficiency and healthy profit margins

Consistently healthy gross margins and recent EBIT improvement indicate durable cost controls and pricing power in specialized explosives markets. Stable net margins support reinvestment and buffer against cyclical revenue swings, underpinning long-term cash generation and competitiveness.

Negative Factors

Recent negative reported revenue growth

A material decline in reported revenue growth signals potential demand weakness or lost contract timing, which can erode scale benefits and operating leverage. If sustained, lower top-line trends reduce cash conversion and make it harder to cover fixed manufacturing and compliance costs over months.

High total liabilities pose risk

Despite improved leverage ratios, elevated total liabilities increase vulnerability to interest rate rises or revenue shortfalls. High obligations can constrain capital allocation, limit ability to invest in capacity or defence certifications, and amplify refinancing risk during downturns.

EBITDA margin volatility

Fluctuating EBITDA margins point to sensitivity to input costs, mix shifts, or lumpy contract economics. Margin volatility undermines predictability of free cash flow and complicates long-term planning for capacity, working capital and sustained investment in certifications or product development.

Premier Explosives Limited Business Overview & Revenue Model

Company Description

Premier Explosives Limited manufactures and sells high energy materials and allied products in India. The company offers bulk explosives, packaged explosives, detonators, detonating fuse, cast and emulsion boosters, solid propellants, pyrogen igniters, pyro devices, explosive bolts, pyro actuators, nitrate mixtures, styphnic acid, slurry/emulsion, chaff, IR flares, tear gas grenades, smoke markers, cable cutters, etc. that have applications in mining, infrastructure, defense, space, homeland security, and other areas. It also operates and maintains solid propellant plants of defense and space establishments. The company markets its products through consignment agents, dealers, and handling agents across India. It also exports commercial explosives to South East Asia, the Middle Eastern, and European countries. The company was incorporated in 1980 and is based in Secunderabad, India.

How the Company Makes Money

Premier Explosives generates revenue primarily through the sale of its explosives and related products to various industries, including mining and construction. The company has established key partnerships with governmental defense sectors, which contribute to its revenue stream through defense contracts. Additionally, PREMEXPLN benefits from ongoing research and development efforts, allowing it to innovate and expand its product offerings. The integration of advanced technologies in its manufacturing processes also enhances operational efficiency and cost-effectiveness, further supporting its earnings.

Premier Explosives Limited Financial Statement Overview

Summary

Premier Explosives Limited demonstrates a commendable financial position, underpinned by robust revenue growth, effective cost management, and strong cash flows. The balance sheet reflects reduced leverage and a solid equity base, although total liabilities warrant careful management. Overall, the company is on a positive financial trajectory with effective operations and prudent financial practices.

Income Statement

Premier Explosives Limited has shown strong revenue growth with a notable increase from previous years, indicating a positive trajectory. The gross profit margin is healthy, showcasing efficient cost management. However, EBITDA margin has seen fluctuations, but recent EBIT margin improvements signal operational efficiency. Net profit margin is consistent, reflecting steady profitability.

Balance Sheet

The company maintains a solid equity base, reflected in a favorable equity ratio. Debt-to-equity ratio has improved over the years, indicating reduced leverage and enhanced financial stability. Return on Equity is stable, reaffirming profitability on equity investments. However, high total liabilities suggest potential risk if not managed well.

Cash Flow

Operating cash flow has significantly improved, aligning closely with net income, which is a positive indicator of cash generation efficiency. Free cash flow is robust, showing strong growth and capability to support future investments. However, previous negative free cash flows highlight the need for continued cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.77B	4.17B	2.72B	2.02B	1.99B	1.54B
Gross Profit	1.78B	1.79B	1.55B	1.15B	979.44M	772.01M
EBITDA	656.12M	579.76M	590.80M	280.66M	220.87M	-18.24M
Net Income	367.27M	286.95M	283.57M	69.07M	53.00M	-109.16M
Balance Sheet
Total Assets	0.00	5.28B	4.42B	3.56B	3.22B	2.94B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.01B	202.84M	10.95M	11.66M	17.16M
Total Debt	0.00	406.49M	614.54M	829.35M	778.25M	580.73M
Total Liabilities	-2.47B	2.81B	2.20B	1.60B	1.31B	1.08B
Stockholders Equity	2.47B	2.46B	2.20B	1.95B	1.89B	1.85B
Cash Flow
Free Cash Flow	0.00	1.05B	555.63M	68.19M	-165.85M	-30.09M
Operating Cash Flow	0.00	1.18B	789.56M	211.20M	-21.55M	99.48M
Investing Cash Flow	0.00	-111.74M	-252.91M	-156.71M	-108.49M	-39.95M
Financing Cash Flow	0.00	-343.49M	-338.42M	-55.74M	125.80M	-70.42M

Premier Explosives Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 541.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PREMEXPLN, the sentiment is Negative. The current price of 541.95 is above the 20-day moving average (MA) of 482.37, above the 50-day MA of 498.33, and above the 200-day MA of 540.73, indicating a bearish trend. The MACD of -10.48 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 34.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PREMEXPLN.

Premier Explosives Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹29.08B	28.92	―	0.65%	-10.12%	-22.38%
KRISHANA	66 Neutral	₹32.22B	25.32	―	0.09%	65.62%	176.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HLEGLAS	59 Neutral	₹23.07B	45.66	―	0.24%	18.87%	99.04%
PREMEXPLN	54 Neutral	₹25.20B	58.64	―	0.10%	48.22%	90.63%
MADRASFERT	48 Neutral	₹11.48B	159.26	―	―	3.38%	0.68%

Premier Explosives Limited Corporate Events

Premier Explosives Wins Rs 17.68 Crore International Rocket Motor Order

Premier Explosives Limited has secured a purchase order from an undisclosed international client for the supply of rocket motors valued at USD 1.93 million (approximately Rs 17.68 crore), to be executed over the next 12 months. The contract, which is not a related-party transaction, underscores the company’s growing traction in international defence markets and is expected to bolster its export revenues and reinforce its positioning as a key Indian supplier of rocket propulsion systems to global customers.

Premier Explosives Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Premier Explosives Limited has submitted to the stock exchanges the requisite certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. KFin Technologies Limited, acting as the company’s registrar and share transfer and depository services agent, has confirmed that all details of securities dematerialised or rematerialised during the quarter have been duly furnished to the exchanges where the company’s shares are listed, underscoring the company’s ongoing compliance with depository and listing requirements.