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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Patel Engineering Ltd

About the Company - Patel Engineering Ltd

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 & ContractingPatel 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

Patel Engineering Ltd. Share Price Update

Share PriceValue
Today₹70.64
Previous Day₹70.81

Basic Stock Data of Patel Engineering Ltd

Market Cap 5,408 Cr.
Current Price 69.9
High / Low79.0/13.1
Stock P/E26.9
Book Value 38.2
Dividend Yield0.00 %
ROCE13.7 %
ROE6.93 %
Face Value 1.00

Data Source: screener.in

Competitors of Patel Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Adhbhut Infrastructure Ltd 36.6 Cr. 33.2364/0.0030.5 5.660.00 %99.2 %% 10.0
Welspun Enterprises Ltd 4,479 Cr. 324383/11712.7 1580.32 %9.99 %13.1 % 10.0
Brigade Enterprises Ltd 23,283 Cr. 1,0081,108/44693.3 1460.19 %8.41 %6.34 % 10.0
NBCC (India) Ltd 26,100 Cr. 145177/31.064.3 10.90.39 %26.4 %19.0 % 1.00
Setubandhan Infrastructure Ltd 10.7 Cr. 0.851.20/0.55119 3.940.00 %0.44 %0.18 % 1.00
Industry Average20.06 Cr100.8163.9664.90.18%28.89%7.72%6.4

Patel Engineering Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales4415447346667248781,1129018301,0371,2051,1191,021
Expenses3954746555626027329577677128731,036948881
Operating Profit467078104122146155134119164169171140
OPM %10%13%11%16%17%17%14%15%14%16%14%15%14%
Other Income1824-17130161624393120351224
Interest10798116106104106104991041071048892
Depreciation17182020202121192024212223
Profit before tax-60-22-2299143654552553807249
Tax %-2%-55%36%129%39%19%37%32%48%29%-0%42%22%
Net Profit-72-36-141-072738372331824338
EPS in Rs-1.11-0.57-2.02-0.010.100.380.530.510.300.401.060.560.49

Patel Engineering Ltd Quarterly Chart

Patel Engineering Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,5924,1153,7013,4154,0413,8842,2752,3622,6171,9953,3804,2024,382
Expenses3,1313,5543,2342,9193,6423,4631,7431,9852,4321,7502,8503,5773,739
Operating Profit461561467496399421531377185244530625643
OPM %13%14%13%15%10%11%23%16%7%12%16%15%15%
Other Income91799913141165106247202-1158311991
Interest333437438516602579489370266401420418391
Depreciation89778280557854506672829390
Profit before tax1301264632-216-719420455-344112233254
Tax %46%41%46%69%9%-45%-12%22%43%21%39%23%
Net Profit70742510-196-10310515411-29172183194
EPS in Rs2.652.590.600.31-7.10-1.821.852.610.18-4.161.002.372.51
Dividend Payout %3%0%0%0%0%0%0%0%0%0%0%0%

Patel Engineering Ltd Profit & Loss Yearly Chart

Patel Engineering Ltd Growth

Compounded Sales Growth
10 Years:0%
5 Years:13%
3 Years:17%
TTM:16%
Compounded Profit Growth
10 Years:11%
5 Years:-1%
3 Years:342%
TTM:53%
Stock Price CAGR
10 Years:6%
5 Years:33%
3 Years:80%
1 Year:410%
Return on Equity
10 Years:2%
5 Years:3%
3 Years:3%
Last Year:7%

Patel Engineering Ltd Balance Sheet

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

Patel Engineering Ltd 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

Patel Engineering Ltd 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%

Patel Engineering Ltd Financial Efficiency Indicators Chart

Patel Engineering Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters60.87%56.23%56.23%54.62%54.62%54.62%54.62%43.48%39.11%39.42%39.42%39.42%
FIIs0.14%0.00%0.00%0.01%0.51%0.39%0.37%2.98%2.92%2.10%2.38%2.36%
DIIs18.84%24.31%19.44%15.02%15.02%15.02%15.03%13.96%13.96%9.20%9.25%6.25%
Public17.09%16.63%21.50%27.61%27.10%27.24%27.25%32.39%36.82%44.49%44.15%47.18%
Others3.07%2.83%2.83%2.75%2.75%2.74%2.74%7.19%7.19%4.79%4.79%4.79%
No. of Shareholders60,00260,11177,99588,66591,85892,86995,24599,0561,08,3211,19,5071,37,0562,00,941

Patel Engineering Ltd Shareholding Pattern Chart

No. of Patel Engineering Ltd Shareholders

This stock is not held by any mutual fund

Patel Engineering Ltd ROCE Trend

Patel Engineering Ltd EPS Trend

Patel Engineering Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.191.51-6.780.399.71
Diluted EPS (Rs.)2.231.49-6.780.394.87
Cash EPS (Rs.)3.523.14-4.322.3912.44
Book Value[Excl.RevalReserv]/Share (Rs.)38.4751.2350.7962.80142.07
Book Value[Incl.RevalReserv]/Share (Rs.)38.4751.2350.7962.80142.07
Revenue From Operations / Share (Rs.)54.3270.5442.8664.12143.83
PBDIT / Share (Rs.)9.6313.447.398.7332.27
PBIT / Share (Rs.)8.4311.735.847.1129.21
PBT / Share (Rs.)3.012.34-7.391.3412.09
Net Profit / Share (Rs.)2.311.43-5.860.769.39
NP After MI And SOA / Share (Rs.)2.371.50-6.250.279.39
PBDIT Margin (%)17.7319.0417.2313.6222.43
PBIT Margin (%)15.5116.6213.6211.0920.30
PBT Margin (%)5.533.31-17.232.098.40
Net Profit Margin (%)4.252.03-13.681.196.52
NP After MI And SOA Margin (%)4.362.12-14.570.426.52
Return on Networth / Equity (%)6.353.01-12.620.436.77
Return on Capital Employeed (%)13.1411.945.936.7210.90
Return On Assets (%)2.090.84-3.590.131.87
Long Term Debt / Equity (X)0.180.310.330.360.57
Total Debt / Equity (X)0.610.940.970.881.16
Asset Turnover Ratio (%)0.500.370.210.290.28
Current Ratio (X)1.461.411.461.241.27
Quick Ratio (X)0.470.460.420.350.34
Inventory Turnover Ratio (X)0.290.000.000.000.00
Interest Coverage Ratio (X)1.781.530.851.341.43
Interest Coverage Ratio (Post Tax) (X)1.431.240.851.001.18
Enterprise Value (Cr.)2805.373255.432648.612531.192998.66
EV / Net Operating Revenue (X)0.660.961.330.961.27
EV / EBITDA (X)3.765.067.707.105.66
MarketCap / Net Operating Revenue (X)0.270.350.270.140.17
Price / BV (X)0.400.490.230.140.18
Price / Net Operating Revenue (X)0.270.350.270.140.17
EarningsYield0.150.06-0.530.030.36

Patel Engineering Ltd Profitability Ratios (%)

Patel Engineering Ltd Liquidity Ratios

Patel Engineering Ltd Liquidity Ratios (%)

Patel Engineering Ltd Interest Coverage Ratios (%)

Patel Engineering Ltd Valuation Ratios

Fair Value / Intrinsic Value of Patel Engineering Ltd

Fair Value: ₹72.64

The stock is undervalued by 3.91% compared to the current price ₹69.9

*Investments are subject to market risks

Strength and Weakness of Patel Engineering Ltd

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 (50.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 12.46 and average Dividend Yield of 15.43%.
  2. The stock has a low average ROCE of 9.42%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 330.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 57.17, which may not be favorable.

Should I Buy Patel Engineering Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Patel Engineering Ltd:
    1. Net Profit Margin: 4.25%
      • 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: 13.14% (Industry Average ROCE: 10.8%)
      • 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. Interest Coverage Ratio (Post Tax): 1.43
      • 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.
    4. Quick Ratio: 0.47
      • 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.
    5. ✓ Stock P/E: 26.9 (Industry average Stock P/E: 34.1)
      • 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.
    6. ✓ Total Debt / Equity: 0.61
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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