Premier Explosives constantly innovating & upgrading products & technology; Overweight

Firstcall India Equity | April 15, 2016, midnight


OUTLOOK AND CONCLUSION


- At the current market price of Rs.364.70, the stock P/E ratio is at 42.52 x FY17E and 35.35 x F Y18E respectively.


- Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 8.58 and Rs. 10.32 respectively.


- Net Sales and Operating Profit of the company are expected to grow at a CAGR of 12% and 5% over 2015 to 2018B respectively.


- On the basis of EV/EBITDA, the stock trades at 17.71 X for F Y17E and 15.76 X for F Y18E.


- Price to Book Value of the stock is expected to be at 4.42 x and 3.93 x for F Y17E and F Y18E respectively.


- Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


SYNOPSIS


- Premier Explosives Limited (PEL) is an India-based Company is engaged in the manufacture and sale of industrial explosives, defense products.


- During the quarter, the company achieved a turnover of Rs. 587.21 mn as against Rs. 422.12 mn in Q4 FY15, up by 39.11%.


- During Q4 FY16, Net profit jumps to Rs. 34.00 mn form Rs. 20.22 mn in the Q4 FY15, an increase of 68.19%.


- During the quarter, EBIDTA is Rs. 72.30 mn as against Rs. 46.93 mn in the corresponding period of the previous year, up by 54.07%.


- During Q4 FY16, PBT increased by 76.00% to Rs. 54.04 mn from Rs. 30.70 mn in Q4 FY15.


- EPS of the company stood at Rs. 3.84 a share during the quarter, registering 68.18% increased over previous year period.


- The company’s total Order book as on 31St March 2016 stands at Rs. 2,260 mn.


- The company has declared an Interim Dividend for the financial year 2015-16 on Equity Share Capital 20% (Rs. 2.00 per equity share, nominal value of Rs. 10/- each).


- Revenues for FY2015-16 stood at Rs. 1849.47 mn as compared to Rs. 1494.92 mn in FY2014-15, up by 24%.


- During the year ended 2015-16, Net Profit increased by 7% to Rs. 56.75 mn from Rs. 53.21 mn in the previous year ended F Y2014-15.


- Net Sales and Operating Profit of the company are expected to grow at a CAGR of 12% and 5% over 2015 to 2018B respectively.

 

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