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.