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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Patel Engineering Ltd

Basic Stock Data

Last Updated: June 22, 2024, 10:29 pm

Market Cap 5,863 Cr.
Current Price 69.4
High / Low79.0/28.2
Stock P/E26.4
Book Value 40.8
Dividend Yield0.00 %
ROCE13.9 %
ROE7.34 %
Face Value 1.00
PEG Ratio0.33

Competitors of Patel Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Poddar Housing & Development Ltd 66.1 Cr. 90.9161/82.0 1390.00 %3.95 %34.9 % 10.0
PSP Projects Ltd 2,614 Cr. 659846/59821.0 2540.38 %19.1 %14.4 % 10.0
Rail Vikas Nigam Ltd 85,434 Cr. 410425/11754.3 42.00.52 %18.4 %19.6 % 10.0
Techindia Nirman Ltd 45.6 Cr. 31.846.0/8.51 8.200.00 %0.43 %3.35 % 10.0
Dhanuka Realty Ltd 20.6 Cr. 26.629.0/7.9020.2 11.60.00 %12.8 %12.8 % 10.0
Industry Average7,375.26 Cr306.9636.55142.690.10%13.22%51.07%6.74

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5447346667248781,1129018309551,2051,1191,0211,061
Expenses4746555626027329577677128141,036948881919
Operating Profit7078104122146155134119140169171140142
OPM %13%11%16%17%17%14%15%14%15%14%15%14%13%
Other Income24-1713016162439312635122452
Interest9811610610410610499104105104889289
Depreciation18202020212119202121222323
Profit before tax-22-229914365455254080724982
Tax %-55%36%129%39%19%37%32%48%23%-0%42%22%16%
Net Profit-36-141-07273837232482433869
EPS in Rs-0.57-2.02-0.010.100.380.530.510.300.311.060.560.490.89

Last Updated: June 9, 2024, 2:36 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:53 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4,1153,7013,4154,0413,8842,2752,3622,6171,9953,3804,2024,544
Expenses3,5543,2342,9193,6423,4631,7431,9852,4321,7502,8503,5773,854
Operating Profit561467496399421531377185244530625690
OPM %14%13%15%10%11%23%16%7%12%16%15%15%
Other Income799913141165106247202-11583119163
Interest437438516602579489370266401420418362
Depreciation778280557854506672829398
Profit before tax1264632-216-719420455-344112233393
Tax %41%46%69%9%-45%-12%22%43%21%39%23%26%
Net Profit742510-196-10310515411-29172183290
EPS in Rs2.590.600.31-7.10-1.821.852.610.18-4.161.002.373.49
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%

Growth

Compounded Sales Growth
10 Years:2%
5 Years:14%
3 Years:32%
TTM:8%
Compounded Profit Growth
10 Years:32%
5 Years:14%
3 Years:71%
TTM:21%
Stock Price CAGR
10 Years:-2%
5 Years:38%
3 Years:55%
1 Year:128%
Return on Equity
10 Years:2%
5 Years:3%
3 Years:6%
Last Year:7%

Last Updated: June 16, 2024, 5:23 pm

Balance Sheet

Last Updated: June 2, 2024, 12:03 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital778881616164147487777
Reserves1,5501,6211,7851,8851,7052,1232,1442,2602,5062,2732,3362,8112,875
Preference Capital000000000000
Borrowings2,8383,4754,4785,1635,3954,9822,9102,6982,2962,2962,2921,7702,005
Other Liabilities1,7971,9202,3372,1832,4042,5552,3443,2263,4853,4713,8354,0923,720
Total Liabilities6,1927,0238,6089,2399,5129,6767,4148,2018,3288,0878,5108,7508,678
Fixed Assets6357156746586226295565786076831,1811,2941,228
CWIP4185367869828378687921,0631,141679283294295
Investments99113134182164138140116796882124126
Other Assets5,0405,6597,0147,4177,8898,0405,9266,4436,5016,6586,9657,0377,029
Total Assets6,1927,0238,6089,2399,5129,6767,4148,2018,3288,0878,5108,7508,678

Reserves and Borrowings Chart

Patel Engineering Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 548-1-362-1-48567403836407389514693
Cash from Investing Activity -227-168-377-244272-222245-327-477-121-217
Cash from Financing Activity -230177614229-311-343-578-513-367-311-340-536
Net Cash Flow918-125-16-86270-4-78554-60

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow561.00467.00496.00399.00421.00531.00377.00185.00244.00530.00625.00690.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1049253614624393546796146
Inventory Days
Days Payable
Cash Conversion Cycle1049253614624393546796146
Working Capital Days239251304358363339379349306539303232
ROCE %11%12%8%8%7%8%11%10%6%6%12%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Apr 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%8.47%
DIIs15.02%15.02%15.02%15.03%13.96%13.96%9.20%9.25%6.25%5.59%4.48%6.38%
Public27.61%27.10%27.24%27.25%32.39%36.82%44.49%44.15%47.18%47.37%47.93%44.63%
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 Shareholders88,66591,85892,86995,24599,0561,08,3211,19,5071,37,0562,00,9412,18,5822,59,6052,65,079

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

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.)40.8738.4751.2350.7962.80
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 (%)9.206.353.01-12.620.43
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)0.180.180.310.330.36
Total Debt / Equity (X)0.600.600.940.970.88
Asset Turnover Ratio (%)0.510.480.370.210.29
Current Ratio (X)1.481.441.411.461.24
Quick Ratio (X)0.540.440.460.420.35
Inventory Turnover Ratio (X)0.240.000.000.000.00
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.)5985.032787.453255.432648.612531.19
EV / Net Operating Revenue (X)1.320.660.961.330.96
EV / EBITDA (X)7.683.745.067.707.10
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: 80.64

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.

Undervalued: 16.20% compared to the current price 69.4

Intrinsic Value: 145.91

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 110.24% compared to the current price ₹69.4

Last 5 Year EPS CAGR: 80.93%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (2,144.15 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.92 cr) and profit (55.33 cr) over the years.
  1. The stock has a low average ROCE of 9.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 330.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 57.17, which may not be favorable.

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: 11.94%)
      • 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%: 9.20% (Industry Average ROE: 9.7%)
      • 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): 1.60
      • 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: 0.54
      • 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: 26.4 (Industry average Stock P/E: 20.44)
      • 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: 0.60
      • 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

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
Mr. Rupen PatelChairman & Managing Director
Ms. Kavita ShirvaikarWholeTime Director & CFO
Ms. Sunil SapreWhole Time Director
Mr. K RamasubramanianIndependent Director
Dr. Barendra Kumar BhoiIndependent 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 ₹80.64.

What is the Market Cap of Patel Engineering Ltd?

The Market Cap of Patel Engineering Ltd is 5,863 Cr..

What is the current Stock Price of Patel Engineering Ltd as on 23 June 2024?

The current stock price of Patel Engineering Ltd as on 23 June 2024 is ₹69.4.

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 79.0/28.2.

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

The Stock P/E of Patel Engineering Ltd is 26.4.

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 7.34 %.

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