The shares of this leading defense stock is in focus after the company has laid down its guidance for the next years. In this article, we will dive deep into what the management expects regarding its order book, topline growth, etc
With a market capitalization of Rs 3,232 crores, the shares of Premier Explosives Ltd are currently trading at 601 per share, down by 34 percent from its 52-week high of Rs 909.35 per share. Over the past five years, the stock has delivered a multibagger return of 4,072 percent.
What did the management say?
In their most recent investor conference call on May 23, 2025, Premier Explosives Limited provided a strong outlook for their financial future. For FY26, the management expects an order inflow of Rs 800 crores, which is above the figure for their order book of Rs 750 crores as at the end of FY25. This projected order inflow indicates a strong pipeline and increasing demand for defence and commercial explosive products.
Moreover, Premier Explosives believes their revenue (or topline) will increase considerably and is targeting FY26 revenues of Rs 600 crores. The company has a long-term vision of achieving Rs 1,000 crores in revenue by FY30 and is therefore being proactive about scaling the business.
In terms of profit, management believes they will be able to maintain good margins and is guiding for an EBITDA margin within the 18-20 percent range, driven by increased productivity, better product mix, and improved execution.
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Financial Highlights
The company reported a revenue surge of 53.3 percent to Rs 417 crores in FY25 from Rs 272 crores in FY24. It reported a net profit of Rs 29 crores in FY25, up by mere 3.57 percent from Rs 28 crores in FY24. The company delivered an ROE and ROCE of 12.25 percent and 16.88 percent respectively, and is currently trading at a P/E of 113.18x as compared to its industry average of 27.37x.
Premier Explosives Limited, founded in 1980 and headquartered in Secunderabad, produces and markets high-energy products and defence products in India and overseas. Its products range from explosives, propellants, warheads, detonators, flares, and rocket motors to cater to industries such as mining, defense, space, and homeland security. The company also has solid propellant plants and markets its products through agents and dealers.
Written by Satyajeet Mukherjee
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