Premier Explosives is a 30 year old Secunderabad based manufacturer of Explosives & Accessories.Company having three plants in Andhra Pradesh one each in Maharastra and Madhya Pradesh.PEL is producing a wide range of explosives used in Mining and Defense.Over the past years company established as dominant player in this strictly controlled industry with indigenously developed technology and a well established marketing network.PEL producing various types of electric & non-electric detonators , detonating cord & pentolite boosters, Smoke markers and other bulk explosives.Company having more than 90 explosives storing facilities across the country approved by the authorities and also possessing close to 125 explosive vans for the timely delivery of its products.In defense segment PEL having business alliances with Satish Dhawan Space Centre (SHAR) Sriharikota, SFC,Jagdalpur and Armament Research & Development Establishment (ARDE )Pune for supplying missile fuel .Company also started export in recent times which shows a growth of 40% last year.A major portion of its revenue is generated from the mining sector .Even the mining activities are disrupted in many parts especially in Andra Pradesh ,company showing improvement in its operations.Now the restrictions on mining operations are expected to lift at least partially in next few months which will help the company going forward.To minimize the effect of such restrictions company is now eying more exports and increasing its operation in defense sector.Government’s new policy to permit more participation for private players in defense sector is another positive for the company.Being an established player in a highly regulated industry company enjoying an early mover advantage.Due to the nature of this industry the entry barrier of new players is also very high.For the last financial year PEL posted a turnover of Rs.108 Cr ,a net profit of Rs.12 Cr and an EPS of Rs.15/-. Company also declared a dividend of 25 %.At CMP of Rs.73 it is trading at a P/E of below 5.Considering the entry barrier in this industry,its strong relations with government owned defense companies and the chances of some relaxation in mining activities – recommending a BUY only for long term investors at CMP of Rs.73/-.
Being one of the largest comprehensive explosives and initiating devices manufacturing Industry in India, "SOLAR" explosives. NOW TRADING AT 919.50 WITH EPS OF 35. SIR KINDLY GIVE YOUR GUINDENCE,Promoter holding is 74.92.ITS PRODUCTS Bulk Explosives,Detonator,Speciality Chemicals.THANK YOU.
ReplyDeleteDear Sir,
ReplyDeleteWould you have an idea on how bad would be "Accident at Peddakandukuru factory" owned by this company?
Dear Ketan
DeleteI think this incident happened last Monday discounted with almost a 10% fall in share price.
DON'T WORRY ABOUT ACCIDENT. LOSS OF 2 LIFE'S & 7-10 LAKS WOTH SHED COLLAPSED AND THAT ALSO COVERED BY INSURGENCE.
ReplyDeleteHow is GULF OIL CORPORATION another hyderabad based company dealing with industrial mining and diversified, and also about the result analysis of NILE whether to hold/sell
ReplyDeleteNot tracking Gulf oil
DeleteSir,
ReplyDeleteYour thoughts on EPC Inds which is well below 100 levels. You had indicated that any corrections below 120 is good. With right issue done, do you see value at CMP for LT investors?
Pls guide sir. I had bot India Gelatine and seems doing good. I would like to invest for my LT PF - EPC Inds..
Thanks for your good suggestions. I would be grateful if you respond for small investors like us..
Thank you sir and our good wishes.
Positive on EPC Ind in long term ,but remember investing a major portion of portfolio in any single stock is risky.
DeleteSir why there is a sharp correction in granules ahead of results, whether it is a healthy one or any matter relating to results.
ReplyDeleteSome investors may not like to take the risk of result.I am looking beyond the first quarter result and no change in may opinion on this.
DeleteDear VP sir,
ReplyDelete1.Should one enter on suzlon at current levels in wake of FCCB repayment due on 27 july.
2.At current price what is view on speciality restaurants,should one wait till results.
3.any positive news coming in for sanderasa group companies sterling international & sterling bio or iys just a speculation going on in stocks.
Dear VP
ReplyDeleteAny Comment on Bhagiradh chemicals and Industries .. Ur old recommendation in 2010 .??
Keep watching the progress of Monsoon ,this factor may affect the company in next one year .
Delete1)search for the recent comment on suzlon
ReplyDelete2)waited till now ,just wait for the result
3)Don't like this group
Dear Sir, what your pick on Can fin homes Ltd...??
ReplyDeleteNot tracking
Deletewhat about Schneider Electric Infrastructure? how is it for long term?
ReplyDeleteHi VP,
ReplyDeletekindly comment on Orchid Chem as most of the big guns like Prof Mankekar and Rakesh Jhun are now out of this stock. Most importantly pathetic performance this yr in lights of only 6% sales growth even after revised 20% guidance...
Dear VPji,
ReplyDeleteWhats your take on Hanung TOys, will it yield good returns over a period of time or is it not worth looking into?
Regards,
Sachi
Dear Sir,
ReplyDeleteWhat is view on Transgene Biotek at current price.
Dear sir,
ReplyDeleteWhat is your view on Transgene Biotek at current price?
Sir your comments on timken india....i have shares at Rs 267... now its going very low...can i averge it now ? will it go up ?
ReplyDeletedear sir, of Rs. 6 Lac portifolio, i invested 20% in igarasi motors and fairfield. Recently i am of the view that i am at high ridk due to change the environment of automobile industry. I will be please to have your comments on these stocks. Regards MMM
ReplyDeleteSir, Any idea why Premier Explosives fell today? Results seem to be reasonable and I couldn't find anything wrong. Though understand, hard to comment to short term move.
ReplyDeletesir,
ReplyDeletepremier explosives is down by a huge percentage. results were very poor. Im running into huge losses. should i quit this counter?
please let me know. thanks.
Stock is currently trading around Rs.61 ,about 20% lower than the recommended price.Since there is no clear decision to lift mining ban and delay in approving environmental clearances ,company could not perform well.Recommending to book loss for the time being and re enter when govt take some since efforts to solve the issues related with mining sector.
Delete