Premier Explosives Limited (PREMEXPLN) AI Stock Analysis

• Market Cap: ₹27.53B
• Dividend Yield: 0.1%
• Average Volume (3M): 120.50K
• Price to Earnings (P/E): 59.7
• Beta (1Y): 1.63
• Revenue Growth: 48.22%
• EPS Growth: 90.63%
• Country: IN
• Employees: 841
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.31
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹481.00 ▼(-11.25% Downside)

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

Revenue Growth

Sustained ~48% reported revenue growth indicates durable demand expansion across industrial and defense segments. This pace supports scale benefits, improves bargaining power with suppliers, and provides a larger base to absorb fixed costs, enhancing long-term earnings resilience.

Cash Generation / Free Cash Flow

Strengthening operating cash flow closely aligned with net income and robust free cash flow improve financial flexibility. Reliable cash generation funds capex for capacity, supports working capital needs for contracts, enables debt paydown and cushions cyclicality over multiple quarters.

Reduced Leverage and Solid Equity Base

Improved debt-to-equity and a favorable equity ratio lower refinancing and solvency risk, enabling the company to pursue long-term defense or infrastructure contracts that require upfront investment. Strong equity backing supports strategic capital allocation and credit access.

Negative Factors

High Total Liabilities

Despite improved leverage ratios, elevated absolute liabilities can strain liquidity during demand downturns or contract slowdowns. High obligations increase rollover and interest exposure, limiting flexibility to invest or bid competitively on large, long-duration projects.

EBITDA Margin Volatility

Fluctuating EBITDA margins point to variability in pricing, input costs, or operating efficiency. Margin instability reduces predictability of operating cash flow and complicates long-term planning for capex and R&D, making sustained margin expansion less certain over the medium term.

Limited Disclosure on Customer/Segment Concentration

Absence of segment and customer concentration data impairs visibility into revenue stickiness and concentration risk. For a supplier to cyclically exposed industries and defense tenders, this disclosure gap makes it harder to assess durability of order backlog and long-term revenue stability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 541.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 504.60, above the 50-day MA of 513.15, and above the 200-day MA of 535.86, indicating a neutral trend. The MACD of -7.79 indicates Negative momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 81.91 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.62B	26.12	―	0.65%	-10.12%	-22.38%
KRISHANA	66 Neutral	₹29.37B	23.08	―	0.09%	65.62%	176.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HLEGLAS	59 Neutral	₹26.53B	47.08	―	0.24%	18.87%	99.04%
PREMEXPLN	54 Neutral	₹27.53B	59.70	―	0.10%	48.22%	90.63%
MADRASFERT	48 Neutral	₹12.25B	15.47	―	―	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.