Risk factor
Meaningful price volatility
Profitability factor
Greatly overvalued vs peers
About
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.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB