Premier Explosives, a defence major, is set to split into a 1:5 ratio. Currently, the stock is nearly Rs 2,380 per share, which will be split into five smaller shares. Apart from this, Premier Explosives also received approval for fundraising worth Rs 400 crore through market-related instruments. On April 23, Premier Explosives touched a new 52-week high of Rs 2,584.95 apiece before correcting.Udabur Stock
On BSE, the stock price stood at Rs 2,376.80 apiece, down by 4.92% on Tuesday with a market cap of Rs 2,555.59 crore. During the trading hours of April 23, the stock also touched a new 52-week high of Rs 2,584.95 apiece.
The stock surged massively by 545% from its 52-week low of Rs 400.50 apiece. Premier Explosives is a multi-bagger defence stock.
The company’s shares will be subdivided into a ratio of 1:5.Agra Investment
As per the regulatory filing, the sub-division / split of existing 1 (one) Equity Share of face value of Rs.10 (Rupees ten only) each, fully paid up into 5 (Five) Equity Shares of face value of RsAhmedabad Stock. 2/- ‘(Rupees Two only) each, fully paid up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought utilizing Postal Ballot.
Premier said that the record date for sub-division/split of existing equity shares will be intimated in due course.
Apart from stock splits, the next big event for Premier Explosives will be its fundraising of Rs 400 crore via market-related instruments.
Premier received approval on April 19 for raising funds through the issuance of instruments or securities including equity shares or any other eligible securities by way of one or more public and/or private offerings including on a preferential allotment basis and/or a qualified institution placement and/or rights issue and/or further public offering, in one or more of the tranches for an aggregate amount not exceeding Rs 400 crore, as per the filing.
To give effect to the above, the Board has constituted and authorized the Fund Raising Committee of the Board to, inter-alia, decide the terms and conditions of the proposed fundraising.Kanpur Investment
The fundamentals of PEL are broadly positive except for PE ratio and Return On Equity. As per Trendlyne data, following fundamentals to note for the stock:
– Annual Revenue rose 1.11%, in the last year to ₹204.2 Cr. Its sector’s average revenue growth for the last fiscal year was 19.18%.
– Annual Net Profit rose 30.32% in the last year to ₹6.91 Cr. Its sector’s average net profit growth for the last fiscal year was 4.97%.
– Stock Price rose 484.19% and outperformed its sector by 352.41% in the past year.
– Debt to Equity Ratio of 0.43 is less than 1 and healthy. This implies that its assets are financed mainly through equity.
– Mutual Fund Holding increased by 0.64% in the last quarter to 9.29.
– Interest Coverage Ratio is 3.15, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).
– Promoter Share Holding stayed the same in the most recent quarter at 41.33%.
– Promoter Pledges are zero.
– Price to Earning Ratio is 106.6, higher than its sector PE ratio of 62.89.
– Return on Equity(ROE) for the last financial year was 3.54%, less than 10%, indicating an inefficient use of shareholder’s capital to generate profit.
PEL has the widest range of products and technologies in the manufacture of Explosives & AccessoriesChennai Investment. These include Emulsion and Slurry explosives, LD cartridge explosives, Bulk Explosives, Small-dia non-permitted explosives, Permitted explosives, Cast Boosters, Pillow-packs for secondary blasting; Detonating Fuse of various core-loads, Plain detonators, Instantaneous Electric Detonators, Electric Delay Detonators, Permitted Detonators, Cord Relays and Amardet NoN Electric Shock-tube Detonators.
PEL has constantly innovated and upgraded its technology to offer “state-of-the-art” products to its valued customers both in India and abroad. Commitment to quality, Safety, Health & Environment are the way of life at PEL.
Bangalore Investment