Premier Explosives Eyes Rs 10,000-Crore Turnover By 2030

Company to invest Rs 1,000 crore in capacity expansion

Premier Explosives Limited (PEL), a leading Indian explosives manufacturer, is targeting a turnover of Rs 10,000 crore by 2030. The company plans to invest Rs 1,000 crore in capacity expansion and modernization over the next five years to achieve this goal. PEL currently has a turnover of Rs 2,500 crore.

Expansion plans

PEL plans to set up a new detonator plant in Madhya Pradesh with an investment of Rs 500 crore. The company is also planning to expand its existing explosives plant in Odisha with an investment of Rs 250 crore. The expansion will increase the company's detonator capacity by 50% and its explosives capacity by 25%.

In addition to the capacity expansion, PEL is also investing in new technologies to improve its efficiency and productivity. The company is investing in automation, digitization, and process optimization to reduce costs and improve quality.

Market outlook

The explosives market in India is expected to grow at a CAGR of 6-8% over the next five years. The growth is driven by the increasing demand for explosives in the mining, infrastructure, and construction sectors. PEL is well-positioned to benefit from this growth with its strong market position and its plans for capacity expansion and modernization.

Financial performance

PEL's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 10% over the past five years. The company's net profit has also grown at a CAGR of 15% over the same period.

PEL's financial performance is expected to continue to be strong in the coming years. The company's capacity expansion and modernization plans are expected to drive growth in revenue and profitability.

Investment potential

PEL is a well-managed company with a strong track record of growth. The company's expansion plans and its strong market position make it an attractive investment for investors. PEL's shares are currently trading at a P/E ratio of 20, which is in line with the industry average.

Investors who are looking for a long-term investment in the explosives sector should consider investing in PEL. The company is well-positioned to benefit from the growth in the explosives market and its expansion plans are expected to drive growth in revenue and profitability.