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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Power Mech Projects Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:45 pm

Market Cap 7,982 Cr.
Current Price 2,525
High / Low3,725/1,958
Stock P/E29.3
Book Value 620
Dividend Yield0.04 %
ROCE23.8 %
ROE15.9 %
Face Value 10.0
PEG Ratio2.45

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

View Share Price Target for Power Mech Projects Ltd

Competitors of Power Mech Projects Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fine Line Circuits Ltd 50.3 Cr. 104114/48.2173 17.80.00 %4.49 %1.87 % 10.0
Filtra Consultants & Engineers Ltd 88.3 Cr. 80.5116/32.123.5 21.42.79 %21.1 %15.9 % 10.0
DRA Consultants Ltd 41.8 Cr. 38.269.0/23.415.2 28.40.00 %11.2 %8.09 % 10.0
Zodiac Energy Ltd 752 Cr. 498819/14055.9 53.80.00 %22.4 %26.0 % 10.0
Rites Ltd 13,219 Cr. 275413/23133.2 53.84.18 %25.4 %17.5 % 10.0
Industry Average3,995.33 Cr482.2472.35118.620.74%12.27%9.82%10.00

All Competitor Stocks of Power Mech Projects Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5087556235396469027477719091,1748659321,108
Expenses4866815584835788086656858081,047766822975
Operating Profit227565566894818610112799111133
OPM %4%10%10%10%10%10%11%11%11%11%11%12%12%
Other Income10655542339647
Interest19211917202420212424202523
Depreciation999991010101013101012
Profit before tax450423543655358691007580105
Tax %26%28%25%22%25%27%26%26%27%25%32%36%41%
Net Profit3363127334739435175515162
EPS in Rs2.1324.2421.3718.4122.3532.3626.8429.7833.9650.4534.2134.3938.92

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales9361,2001,3661,3781,3381,5482,2612,1651,8842,7103,6014,207
Expenses8141,0451,1991,1961,1721,3461,9701,8941,8452,4243,2063,714
Operating Profit12215516718216620229127139287395493
OPM %13%13%12%13%12%13%13%13%2%11%11%12%
Other Income5116687151116141728
Interest172729333336557479799094
Depreciation343337394143463936374344
Profit before tax76107107116100130206168-60185280382
Tax %33%36%33%35%36%30%30%22%19%25%26%35%
Net Profit516872756591143131-49138207249
EPS in Rs47.5962.2556.7451.0443.9754.0082.6789.23-31.0294.48140.28157.07
Dividend Payout %2%2%2%2%2%2%1%1%0%2%1%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)33.33%5.88%4.17%-13.33%40.00%57.14%-8.39%-137.40%381.63%50.00%20.29%
Change in YoY Net Profit Growth (%)0.00%-27.45%-1.72%-17.50%53.33%17.14%-65.53%-129.01%519.04%-331.63%-29.71%

Power Mech Projects 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:13%
5 Years:13%
3 Years:31%
TTM:15%
Compounded Profit Growth
10 Years:14%
5 Years:15%
3 Years:95%
TTM:20%
Stock Price CAGR
10 Years:%
5 Years:52%
3 Years:74%
1 Year:27%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:16%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:52 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital11111315151515151515151616
Reserves1942633425406076848059368901,0291,2601,8221,942
Borrowings165209271251211298380523515531477396659
Other Liabilities3964734224995305887288658501,0231,3021,3341,301
Total Liabilities7659561,0481,3051,3631,5851,9272,3392,2702,5973,0543,5683,918
Fixed Assets170178183198206203190188175180189231254
CWIP771722126335231136
Investments00001031334139363737
Other Assets5887718481,0851,1431,3761,7022,1162,0492,3752,8273,2883,591
Total Assets7659561,0481,3051,3631,5851,9272,3392,2702,5973,0543,5683,918

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +18274-17119361-48122175182205
Cash from Investing Activity +-40-42-45-63-40-42-633-47-52-91-373
Cash from Financing Activity +29164271-73502559-91-63-120176
Net Cash Flow811-9644-3714-1660-297

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-43.00-54.00-104.00-69.00-45.00-96.00-89.00-252.00-476.00-244.00-82.0097.00

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 Days6945527280736391103909190
Inventory Days1081141519913192
Days Payable8238811,043859797597
Cash Conversion Cycle-645-722-840-687-585-4336391103909190
Working Capital Days503561102111123105152187142121117
ROCE %29%31%25%21%16%18%23%18%1%18%22%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Oct 2024
Promoters63.69%63.69%63.69%64.17%64.17%64.12%64.05%60.40%60.38%58.29%58.29%58.29%
FIIs3.90%4.13%4.94%5.14%4.96%3.57%4.16%4.24%4.98%5.24%4.98%4.94%
DIIs8.34%8.35%9.42%10.27%10.76%13.47%14.53%18.57%19.44%21.65%23.24%23.11%
Public24.07%23.83%21.95%20.41%20.10%18.83%17.25%16.80%15.19%14.82%13.50%13.67%
No. of Shareholders16,10015,44716,92516,94821,21521,79125,45923,90726,73029,15649,59452,639

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan1,215,0781.99506.1172,6842024-11-231571.73%
HSBC Value Fund361,5001.49150.5772,6842024-11-23397.36%
HSBC Focused Fund108,0003.0144.9872,6842024-11-2348.59%
HSBC Multi Cap Fund84,8521.7335.3472,6842024-11-2316.74%
Aditya Birla Sun Life Small Cap Fund80,5290.6733.5472,6842024-11-2310.79%
Mahindra Manulife Multi Cap Fund78,0001.3232.4972,6842024-11-237.31%
HDFC Defence Fund72,6841.930.2772,6842024-11-230%
HSBC Infrastructure Fund69,5001.4828.9572,6842024-11-23-4.38%
Edelweiss Mid Cap Fund63,1670.6226.3172,6842024-11-23-13.09%
Edelweiss Small Cap Fund51,5300.7721.4672,6842024-11-23-29.1%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)162.13141.2694.48-31.0289.23
Diluted EPS (Rs.)162.13141.2694.48-31.0289.23
Cash EPS (Rs.)187.20173.27120.77-6.63114.58
Book Value[Excl.RevalReserv]/Share (Rs.)1162.56855.38711.35617.53652.11
Book Value[Incl.RevalReserv]/Share (Rs.)1162.56855.38711.35617.53652.11
Revenue From Operations / Share (Rs.)2660.752415.281842.621280.821471.57
PBDIT / Share (Rs.)331.32282.06206.1939.55190.41
PBIT / Share (Rs.)303.46253.28181.1115.24163.60
PBT / Share (Rs.)244.05193.23127.08-38.65113.26
Net Profit / Share (Rs.)159.35144.4995.69-30.9487.78
NP After MI And SOA / Share (Rs.)156.91140.2594.49-31.0289.23
PBDIT Margin (%)12.4511.6711.193.0812.93
PBIT Margin (%)11.4010.489.821.1811.11
PBT Margin (%)9.178.006.89-3.017.69
Net Profit Margin (%)5.985.985.19-2.415.96
NP After MI And SOA Margin (%)5.895.805.12-2.426.06
Return on Networth / Equity (%)13.4916.3913.32-5.0413.80
Return on Capital Employeed (%)22.3125.4421.352.1822.60
Return On Assets (%)6.956.845.35-2.015.61
Long Term Debt / Equity (X)0.020.020.030.010.03
Total Debt / Equity (X)0.210.370.500.510.47
Asset Turnover Ratio (%)1.271.271.110.781.00
Current Ratio (X)2.041.581.531.431.43
Quick Ratio (X)1.961.491.421.341.33
Inventory Turnover Ratio (X)4.623.762.692.142.86
Dividend Payout Ratio (NP) (%)1.201.050.000.000.00
Dividend Payout Ratio (CP) (%)1.020.870.000.000.00
Earning Retention Ratio (%)98.8098.950.000.000.00
Cash Earning Retention Ratio (%)98.9899.130.000.000.00
Interest Coverage Ratio (X)5.584.703.820.733.78
Interest Coverage Ratio (Post Tax) (X)3.683.412.770.422.74
Enterprise Value (Cr.)7833.033978.991612.721265.93882.67
EV / Net Operating Revenue (X)1.861.100.590.670.40
EV / EBITDA (X)14.959.465.3221.763.15
MarketCap / Net Operating Revenue (X)1.881.020.450.450.22
Retention Ratios (%)98.7998.940.000.000.00
Price / BV (X)4.312.881.180.940.51
Price / Net Operating Revenue (X)1.881.020.450.450.22
EarningsYield0.030.050.11-0.050.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Power Mech Projects Ltd as of November 24, 2024 is: 2,889.55

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 November 24, 2024, Power Mech Projects Ltd is Undervalued by 14.44% compared to the current share price 2,525.00

Intrinsic Value of Power Mech Projects Ltd as of November 24, 2024 is: 3,235.54

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 November 24, 2024, Power Mech Projects Ltd is Undervalued by 28.14% compared to the current share price 2,525.00

Last 5 Year EPS CAGR: 11.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.50%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -282.00, which is a positive sign.
  3. The company has higher reserves (870.31 cr) compared to borrowings (375.85 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (79.58 cr) and profit (149.75 cr) over the years.
  1. The stock has a high average Working Capital Days of 108.83, 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 Power Mech Projects Ltd:
    1. Net Profit Margin: 5.98%
      • 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: 22.31% (Industry Average ROCE: 12.27%)
      • 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%: 13.49% (Industry Average ROE: 9.82%)
      • 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): 3.68
      • 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: 1.96
      • 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: 29.3 (Industry average Stock P/E: 72.35)
      • 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: 0.21
      • 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

Power Mech Projects Ltd. is a Public Limited Listed company incorporated on 22/07/1999 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L74140TG1999PLC032156 and registration number is 032156. Currently Company is involved in the business activities of Construction of utility projects. Company’s Total Operating Revenue is Rs. 2631.13 Cr. and Equity Capital is Rs. 14.71 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Project Consultancy/TurnkeyPlot No. 77, Jubilee Enclave Road, Hyderabad Telangana 500081info@powermech.net
http://www.powermechprojects.com
Management
NamePosition Held
Mr. Sajja Kishore BabuChairman & Managing Director
Mrs. Sajja LakshmiNon Executive Director
Mr. Motihari Rajiv KumarNon Executive Director
Mr. Jayarama Prasad ChalasaniIndependent Director
Ms. Lasya YerramneniIndependent Director
Mr. Vivek ParanjpeIndependent Director

FAQ

What is the latest intrinsic value of Power Mech Projects Ltd?

The latest intrinsic value of Power Mech Projects Ltd as on 24 November 2024 is ₹2889.55, which is 14.44% higher than the current market price of ₹2,525.00.

What is the Market Cap of Power Mech Projects Ltd?

The Market Cap of Power Mech Projects Ltd is 7,982 Cr..

What is the current Stock Price of Power Mech Projects Ltd as on 24 November 2024?

The current stock price of Power Mech Projects Ltd as on 24 November 2024 is 2,525.

What is the High / Low of Power Mech Projects Ltd stocks in FY 2024?

In FY 2024, the High / Low of Power Mech Projects Ltd stocks is 3,725/1,958.

What is the Stock P/E of Power Mech Projects Ltd?

The Stock P/E of Power Mech Projects Ltd is 29.3.

What is the Book Value of Power Mech Projects Ltd?

The Book Value of Power Mech Projects Ltd is 620.

What is the Dividend Yield of Power Mech Projects Ltd?

The Dividend Yield of Power Mech Projects Ltd is 0.04 %.

What is the ROCE of Power Mech Projects Ltd?

The ROCE of Power Mech Projects Ltd is 23.8 %.

What is the ROE of Power Mech Projects Ltd?

The ROE of Power Mech Projects Ltd is 15.9 %.

What is the Face Value of Power Mech Projects Ltd?

The Face Value of Power Mech Projects Ltd is 10.0.

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 Power Mech Projects 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