Premier explosives

CMP 72

Premier Explosives Limited (PEL) is one of the major companies manufacturing the entire range of explosives and accessories for the civil requirement.

Starting as a Small Scale unit in 1980, it was founded by Mr.A.N.Gupta, a Gold Medallist in Mining Engineering. Its current turnover is about Rs. 600 million per year. The export earnings of the company are about Rs. 200 million per year.

PEL has the honour of being the first to set up all the manufacturing units with totally in-house technology at a remarkably low capital cost.

PEL's R&D facility is recognised by the Council for Scientific and Industrial Research(CSIR), Government of India, as an established research centre. It is also recognised as a research base for Ph.D. work by Osmania University, Andhra Pradesh.
With a Mcap of 58 cr the companys revenues have almost doubled from 57 cr to 108 cr as also the NP from 5.83 to 11.94 cr during the last 5 years.Its almost a debt free company with D/E of 0.08.A dividend of 25% paid for 2012 which works out to 3.47.The stoock is trading at a PE of less than 5.
The board of Premier Explosives in its meeting on 23 May 2012 has considered and approved a proposal to set up a joint venture company (JV) in Zambia, for manufacturing bulk explosives and accessories and for related business operations.
Considering the above parameters, One can invest in the stock with a long term view.