Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 18 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531120 | NSE: PATELENG

Patel Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 17, 2024, 11:02 pm

Market Cap 4,773 Cr.
Current Price 56.5
High / Low79.0/42.0
Stock P/E20.7
Book Value 40.8
Dividend Yield0.00 %
ROCE13.9 %
ROE7.50 %
Face Value 1.00
PEG Ratio0.38

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Patel Engineering Ltd

Competitors of Patel Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Peninsula Land Ltd 1,628 Cr. 52.878.2/35.125.7 7.800.00 %26.1 %69.8 % 2.00
Patel Engineering Ltd 4,773 Cr. 56.579.0/42.020.7 40.80.00 %13.9 %7.50 % 1.00
Hindustan Construction Company Ltd 7,407 Cr. 44.157.5/22.6 1.000.00 %21.4 %% 1.00
Industry Average4,602.67 Cr51.1323.2016.530.00%20.47%38.65%1.33

All Competitor Stocks of Patel Engineering Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales6667248781,1129018309551,2051,1191,0211,0611,3431,102
Expenses5626027329577677128141,0369488819191,106933
Operating Profit104122146155134119140169171140142238169
OPM %16%17%17%14%15%14%15%14%15%14%13%18%15%
Other Income30161624393126351224527525
Interest106104106104991041051048892899384
Depreciation20202121192021212223232926
Profit before tax91436545525408072498219083
Tax %129%39%19%37%32%48%23%-0%42%22%16%26%43%
Net Profit-0727383723248243386914055
EPS in Rs-0.010.100.380.530.510.300.311.060.500.490.891.620.63

Last Updated: October 17, 2024, 4:40 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 17, 2024, 4:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4,1153,7013,4154,0413,8842,2752,3622,6171,9953,3803,8914,5444,527
Expenses3,5543,2342,9193,6423,4631,7431,9852,4321,7502,8503,3303,8543,839
Operating Profit561467496399421531377185244530562690688
OPM %14%13%15%10%11%23%16%7%12%16%14%15%15%
Other Income799913141165106247202-11583149163175
Interest437438516602579489370266401420412362358
Depreciation778280557854506672828198102
Profit before tax1264632-216-719420455-344112218393405
Tax %41%46%69%-9%45%-12%22%43%-21%39%18%26%
Net Profit742510-196-10310515411-29172183290302
EPS in Rs2.590.600.31-7.10-1.821.852.610.18-4.161.002.373.753.63
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-66.22%-60.00%-2060.00%47.45%201.94%46.67%-92.86%-2745.45%124.74%154.17%58.47%
Change in YoY Net Profit Growth (%)0.00%6.22%-2000.00%2107.45%154.49%-155.28%-139.52%-2652.60%2870.20%29.42%-95.70%

Patel Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:14%
3 Years:32%
TTM:10%
Compounded Profit Growth
10 Years:33%
5 Years:15%
3 Years:71%
TTM:38%
Stock Price CAGR
10 Years:-1%
5 Years:44%
3 Years:35%
1 Year:14%
Return on Equity
10 Years:2%
5 Years:3%
3 Years:6%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:02 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital78881616164147487777
Reserves1,6211,7851,8851,7052,1232,1442,2602,5062,2732,3362,8113,076
Borrowings3,4754,4785,1635,3954,9822,9102,6982,2962,2962,2921,7581,910
Other Liabilities1,9202,3372,1832,4042,5552,3443,2263,4853,4713,8354,1113,933
Total Liabilities7,0238,6089,2399,5129,6767,4148,2018,3288,0878,5108,7578,996
Fixed Assets7156746586226295565786076831,1811,2311,319
CWIP5367869828378687921,0631,141679283294233
Investments113134182164138140116796882135155
Other Assets5,6597,0147,4177,8898,0405,9266,4436,5016,6586,9657,0967,289
Total Assets7,0238,6089,2399,5129,6767,4148,2018,3288,0878,5108,7578,996

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -1-362-1-48567403836407389514702688
Cash from Investing Activity -168-377-244272-222245-327-477-121-224-132
Cash from Financing Activity 177614229-311-343-578-513-367-311-340-541-429
Net Cash Flow8-125-16-86270-4-78554-63126

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow558.00463.00491.00394.00417.00529.00375.00183.00242.00528.00561.00689.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days925361462439354679614744
Inventory Days
Days Payable
Cash Conversion Cycle925361462439354679614744
Working Capital Days251304358363339379349306539303254225
ROCE %12%8%8%7%8%11%10%6%6%12%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.62%54.62%54.62%54.62%43.48%39.11%39.42%39.42%39.42%39.42%39.42%36.11%
FIIs0.01%0.51%0.39%0.37%2.98%2.92%2.10%2.38%2.36%2.83%3.37%3.68%
DIIs15.02%15.02%15.02%15.03%13.96%13.96%9.20%9.25%6.25%5.59%4.48%6.22%
Public27.61%27.10%27.24%27.25%32.39%36.82%44.49%44.15%47.18%47.37%47.93%49.59%
Others2.75%2.75%2.74%2.74%7.19%7.19%4.79%4.79%4.79%4.79%4.79%4.39%
No. of Shareholders88,66591,85892,86995,24599,0561,08,3211,19,5071,37,0562,00,9412,18,5822,59,6053,40,851

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
JM Value Fund1,906,534110.87N/AN/AN/A
JM Small Cap Fund779,7970.794.44N/AN/AN/A
Groww Nifty Total Market Index Fund5,8480.010.03N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.643.191.51-6.780.39
Diluted EPS (Rs.)3.542.231.49-6.780.39
Cash EPS (Rs.)5.013.523.14-4.322.39
Book Value[Excl.RevalReserv]/Share (Rs.)40.8138.4751.2350.7962.80
Book Value[Incl.RevalReserv]/Share (Rs.)40.8738.4751.2350.7962.80
Revenue From Operations / Share (Rs.)58.7454.3270.5442.8664.12
PBDIT / Share (Rs.)10.079.6313.447.398.73
PBIT / Share (Rs.)8.818.4311.735.847.11
PBT / Share (Rs.)5.243.012.34-7.391.34
Net Profit / Share (Rs.)3.742.311.43-5.860.76
NP After MI And SOA / Share (Rs.)3.752.371.50-6.250.27
PBDIT Margin (%)17.1417.7319.0417.2313.62
PBIT Margin (%)14.9915.5116.6213.6211.09
PBT Margin (%)8.915.533.31-17.232.09
Net Profit Margin (%)6.374.252.03-13.681.19
NP After MI And SOA Margin (%)6.384.362.12-14.570.42
Return on Networth / Equity (%)9.216.353.01-12.620.43
Return on Capital Employeed (%)13.6813.1411.945.936.72
Return On Assets (%)3.222.090.84-3.590.13
Long Term Debt / Equity (X)0.170.180.310.330.36
Total Debt / Equity (X)0.590.600.940.970.88
Asset Turnover Ratio (%)0.510.480.370.210.29
Current Ratio (X)1.451.441.411.461.24
Quick Ratio (X)0.500.440.460.420.35
Interest Coverage Ratio (X)2.151.781.530.851.34
Interest Coverage Ratio (Post Tax) (X)1.601.431.240.851.00
Enterprise Value (Cr.)5960.612787.453255.432648.612531.19
EV / Net Operating Revenue (X)1.310.660.961.330.96
EV / EBITDA (X)7.653.745.067.707.10
MarketCap / Net Operating Revenue (X)0.960.270.350.270.14
Price / BV (X)1.400.400.490.230.14
Price / Net Operating Revenue (X)0.960.270.350.270.14
EarningsYield0.060.150.06-0.530.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Patel Engineering Ltd as of October 18, 2024 is: ₹64.61

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 18, 2024, Patel Engineering Ltd is Undervalued by 14.35% compared to the current share price ₹56.50

Intrinsic Value of Patel Engineering Ltd as of October 18, 2024 is: ₹99.79

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 18, 2024, Patel Engineering Ltd is Undervalued by 76.62% compared to the current share price ₹56.50

Last 5 Year EPS CAGR: 54.45%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (2.92 cr) and profit (81.08 cr) over the years.
  1. The stock has a low average ROCE of 9.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 330.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 52.25, which may not be favorable.
  4. The company has higher borrowings (3,304.42) compared to reserves (2,210.42), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Patel Engineering Ltd:
    1. Net Profit Margin: 6.37%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.68% (Industry Average ROCE: 20.47%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.21% (Industry Average ROE: 25.77%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.6
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.5
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 20.7 (Industry average Stock P/E: 15.47)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.59
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Patel Engineering Ltd. is a Public Limited Listed company incorporated on 02/04/1949 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1949PLC007039 and registration number is 007039. Currently Company is involved in the business activities of Construction and maintenance of power plants. Company’s Total Operating Revenue is Rs. 3027.79 Cr. and Equity Capital is Rs. 47.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringPatel Estate Road, Jogeshwari (West), Mumbai Maharashtra 400102headoffice@pateleng.com
http://www.pateleng.com
Management
NamePosition Held
Ms. Janky PatelChairperson
Ms. Kavita ShirvaikarManaging Director
Mr. Kishan Lal DagaWhole Time Director
Mr. Dimitrius D MelloWhole Time Director
Mr. K RamasubramanianIndependent Director
Dr. Emandi Sankara RaoIndependent Director
Dr.(Ms.) Sunanda RajendranIndependent Director
Mr. Shambhu SinghIndependent Director
Mr. Ashwin ParmarIndependent Director

FAQ

What is the latest fair value of Patel Engineering Ltd?

The latest fair value of Patel Engineering Ltd is ₹64.61.

What is the Market Cap of Patel Engineering Ltd?

The Market Cap of Patel Engineering Ltd is 4,773 Cr..

What is the current Stock Price of Patel Engineering Ltd as on 18 October 2024?

The current stock price of Patel Engineering Ltd as on 18 October 2024 is ₹56.5.

What is the High / Low of Patel Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Patel Engineering Ltd stocks is 79.0/42.0.

What is the Stock P/E of Patel Engineering Ltd?

The Stock P/E of Patel Engineering Ltd is 20.7.

What is the Book Value of Patel Engineering Ltd?

The Book Value of Patel Engineering Ltd is 40.8.

What is the Dividend Yield of Patel Engineering Ltd?

The Dividend Yield of Patel Engineering Ltd is 0.00 %.

What is the ROCE of Patel Engineering Ltd?

The ROCE of Patel Engineering Ltd is 13.9 %.

What is the ROE of Patel Engineering Ltd?

The ROE of Patel Engineering Ltd is 7.50 %.

What is the Face Value of Patel Engineering Ltd?

The Face Value of Patel Engineering Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Patel Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE