Flash News Investment - - RECOMMENDATIONS -

We had rec­om­mended Pre­mier Ex­plo­sives in Vol­ume No. 33 Is­sue No. 41 (dated July 31, 2017) when the scrip was trad­ing at Rs 497. Our rec­om­men­da­tion was backed by fac­tors such as fi­nan­cial per­for­mance in FY17 and healthy space sec­tor pro­jects. The com­pany had faced im­pact of high com­pe­ti­tion and pres­sure on re­al­i­sa­tions in June quar­ter of FY18. We ex­pect the re­al­i­sa­tions to be un­der pres­sure for some time. But to re­duce this risk, the com­pany has di­ver­si­fied its rev­enue stream by gain­ing foothold in the de­fence busi­ness and emul­sion ex­plo­sives seg­ment. We ex­pect the com­pany would ben­e­fit from this di­ver­si­fi­ca­tion in the long run. Hence, we rec­om­mend our in­vestors to HOLD the scrip at the cur­rent lev­els.

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