Premier Explosives Intrinsic Value

PREMEXPLN • Chemicals
Current Stock Price
₹425.70
Primary Intrinsic Value
₹159.36
Market Cap
₹468.3 Cr
-39.2% Downside
Median Value
₹259.03
Value Range
₹128 - ₹1064
Assessment
Trading Above Calculated Value
Safety Margin
-64.3%

PREMEXPLN Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹159.36 ₹127.49 - ₹191.23 -62.6% EPS: ₹13.28, Sector P/E: 12x
Book Value Method asset ₹224.55 ₹202.10 - ₹247.01 -47.3% Book Value/Share: ₹224.55, P/B: 1.0x
Revenue Multiple Method revenue ₹288.00 ₹259.20 - ₹316.80 -32.3% Revenue/Share: ₹360.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹610.91 ₹549.82 - ₹672.00 +43.5% EBITDA: ₹112.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹1064.25 ₹851.40 - ₹1277.10 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹127.71 ₹114.94 - ₹140.48 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹127.71 ₹114.94 - ₹140.48 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹851.40 ₹766.26 - ₹936.54 +100.0% ROE: 29.1%, P/E Multiple: 16x
Graham Defensive Method conservative ₹259.03 ₹233.13 - ₹284.93 -39.2% EPS: ₹13.28, BVPS: ₹224.55
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

PREMEXPLN Intrinsic Value Analysis

What is the intrinsic value of PREMEXPLN?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Premier Explosives (PREMEXPLN) is ₹259.03 (median value). With the current market price of ₹425.70, this represents a -39.2% variance from our estimated fair value.

The valuation range spans from ₹127.71 to ₹1064.25, indicating ₹127.71 - ₹1064.25.

Is PREMEXPLN undervalued or overvalued?

Based on our multi-method analysis, Premier Explosives (PREMEXPLN) appears to be trading above calculated value by approximately 39.2%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 9.97 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 29.1% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 7.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.75x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹119 Cr ₹114 Cr Positive Free Cash Flow 8/10
March 2024 ₹79 Cr ₹67 Cr Positive Free Cash Flow 8/10
March 2023 ₹21 Cr ₹13 Cr Positive Free Cash Flow 8/10
March 2022 ₹-2 Cr ₹-8 Cr Negative Cash Flow 3/10
March 2021 ₹10 Cr ₹8 Cr Positive Free Cash Flow 8/10