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

Fundamental Analysis of Power Mech Projects Ltd

About the Company - Power Mech Projects Ltd

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. S Kishore BabuChairman & Managing Director
Mrs. S LakshmiNon Executive Director
Mr. M Rajiv KumarNon Executive Director
Mr. G D V Prasada RaoIndependent Director
Ms. Lasya YerramneniIndependent Director
Mr. Vivek ParanjpeIndependent Director
Mr. Jayarama Prasad ChalasaniIndependent Director

Power Mech Projects Ltd. Share Price Update

Share PriceValue
Today₹5,238.50
Previous Day₹5,276.75

Basic Stock Data of Power Mech Projects Ltd

Market Cap 7,917 Cr.
Current Price 5,008
High / Low5,550/2,005
Stock P/E33.3
Book Value 865
Dividend Yield0.04 %
ROCE22.2 %
ROE17.9 %
Face Value 10.0

Data Source: screener.in

Competitors of Power Mech Projects Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Zodiac Energy Ltd 448 Cr. 306340/85.065.4 26.20.00 %11.2 %8.90 % 10.0
Rites Ltd 18,254 Cr. 760821/31139.5 1072.61 %29.7 %21.3 % 10.0
Pansari Developers Ltd 186 Cr. 107152/70.244.4 70.80.00 %1.81 %1.60 % 10.0
Reliance Industrial Infrastructure Ltd 2,192 Cr. 1,4521,605/723204 2650.23 %2.49 %2.32 % 10.0
Perfect Infraengineers Ltd 72.7 Cr. 50.650.6/14.348.2 14.80.00 %1.31 %2.85 % 10.0
Industry Average145.34 Cr244.9280.396.760.57%9.3%7.39%10

Power Mech Projects Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales3455087556235396469027477719091,174865932
Expenses3904866815584835788086656858081,047766822
Operating Profit-45227565566894818610112799111
OPM %-13%4%10%10%10%10%10%11%11%11%11%11%12%
Other Income21065554233964
Interest19192119172024202124242025
Depreciation99999910101010131010
Profit before tax-70450423543655358691007580
Tax %22%26%28%25%22%25%27%26%26%27%25%32%36%
Net Profit-5533631273347394351755151
EPS in Rs-35.212.1324.2421.3718.4122.3532.3626.8429.7833.9650.4534.2134.39

Power Mech Projects Ltd Quarterly Chart

Power Mech Projects Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7059361,2001,3661,3781,3381,5482,2612,1651,8842,7103,6013,881
Expenses5928141,0451,1991,1961,1721,3461,9701,8941,8452,4243,2063,443
Operating Profit11312215516718216620229127139287395438
OPM %16%13%13%12%13%12%13%13%13%2%11%11%11%
Other Income165116687151116141722
Interest13172729333336557479799093
Depreciation39343337394143463936374343
Profit before tax7876107107116100130206168-60185280324
Tax %33%33%36%33%35%36%30%30%22%19%25%26%
Net Profit52516872756591143131-49138207227
EPS in Rs48.7447.5962.2556.7451.0443.9754.0082.6789.23-31.0294.48140.28153.01
Dividend Payout %2%2%2%2%2%2%2%1%1%0%2%1%

Power Mech Projects Ltd Profit & Loss Yearly Chart

Power Mech Projects Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:18%
3 Years:18%
TTM:27%
Compounded Profit Growth
10 Years:15%
5 Years:21%
3 Years:17%
TTM:40%
Stock Price CAGR
10 Years:%
5 Years:44%
3 Years:115%
1 Year:206%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:10%
Last Year:18%

Power Mech Projects Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11111113151515151515151515
Reserves1441942633425406076848059368901,0291,2601,353
Borrowings117165209271251211298380523515531477459
Other Liabilities3003964734224995305887288658501,0231,3021,273
Total Liabilities5727659561,0481,3051,3631,5851,9272,3392,2702,5973,0543,101
Fixed Assets170170178183198206203190188175180189188
CWIP4771722126335234
Investments0000010313341393634
Other Assets3995887718481,0851,1431,3761,7022,1162,0492,3752,8272,875
Total Assets5727659561,0481,3051,3631,5851,9272,3392,2702,5973,0543,101

Power Mech Projects Ltd Reserves and Borrowings Chart

Power Mech Projects Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4218274-17119361-48122175182
Cash from Investing Activity -72-40-42-45-63-40-42-633-47-52-91
Cash from Financing Activity 2729164271-73502559-91-63-120
Net Cash Flow-3811-9644-3714-1660-29

Power Mech Projects Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7669455272807363911039091
Inventory Days731081141519913192
Days Payable4468238811,043859797597
Cash Conversion Cycle-297-645-722-840-687-585-43363911039091
Working Capital Days37503561102111123105152187142121
ROCE %41%29%31%25%21%16%18%23%18%1%18%22%

Power Mech Projects Ltd Financial Efficiency Indicators Chart

Power Mech Projects Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Oct 2023
Promoters63.22%63.70%63.70%63.69%63.69%63.69%63.69%64.17%64.17%64.12%64.05%60.40%
FIIs2.94%2.91%3.77%3.85%3.90%4.13%4.94%5.14%4.96%3.57%4.16%4.63%
DIIs9.23%10.18%8.11%8.34%8.34%8.35%9.42%10.27%10.76%13.47%14.53%18.10%
Public24.61%23.20%24.42%24.11%24.07%23.83%21.95%20.41%20.10%18.83%17.25%16.86%
No. of Shareholders15,37016,22916,91915,47216,10015,44716,92516,94821,21521,79125,45925,040

Power Mech Projects Ltd Shareholding Pattern Chart

No. of Power Mech Projects Ltd Shareholders

Power Mech Projects Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Small Cap Fund - Regular Plan12150781.99506.11
HSBC Value Fund3615001.49150.57
HSBC Focused Fund1080003.0144.98
HSBC Multi Cap Fund848521.7335.34
Aditya Birla Sun Life Small Cap Fund805290.6733.54
Mahindra Manulife Multi Cap Fund780001.3232.49
HDFC Defence Fund726841.930.27
HSBC Infrastructure Fund695001.4828.95
Edelweiss Mid Cap Fund631670.6226.31
Edelweiss Small Cap Fund515300.7721.46

Power Mech Projects Ltd ROCE Trend

Power Mech Projects Ltd EPS Trend

Power Mech Projects Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)141.2694.48-31.0289.2382.68
Diluted EPS (Rs.)141.2694.48-31.0289.2382.68
Cash EPS (Rs.)173.27120.77-6.63114.58127.44
Book Value[Excl.RevalReserv]/Share (Rs.)856.28711.35617.53652.11562.55
Book Value[Incl.RevalReserv]/Share (Rs.)856.28711.35617.53652.11562.55
Revenue From Operations / Share (Rs.)2415.281842.621280.821471.571537.25
PBDIT / Share (Rs.)282.06206.1939.55190.41207.28
PBIT / Share (Rs.)253.28181.1115.24163.60176.13
PBT / Share (Rs.)193.23127.08-38.65113.26138.69
Net Profit / Share (Rs.)144.4995.69-30.9487.7896.30
NP After MI And SOA / Share (Rs.)140.2594.49-31.0289.2382.68
PBDIT Margin (%)11.6711.193.0812.9313.48
PBIT Margin (%)10.489.821.1811.1111.45
PBT Margin (%)8.006.89-3.017.699.02
Net Profit Margin (%)5.985.19-2.415.966.26
NP After MI And SOA Margin (%)5.805.12-2.426.065.37
Return on Networth / Equity (%)16.3913.32-5.0413.8014.84
Return on Capital Employeed (%)25.4421.352.1822.6026.29
Return On Assets (%)6.845.35-2.015.616.31
Long Term Debt / Equity (X)0.020.030.010.030.06
Total Debt / Equity (X)0.370.500.510.470.41
Asset Turnover Ratio (%)1.271.110.781.001.03
Current Ratio (X)1.581.531.431.431.48
Quick Ratio (X)1.491.421.341.331.38
Inventory Turnover Ratio (X)3.762.692.142.864.58
Dividend Payout Ratio (NP) (%)1.050.000.000.001.45
Dividend Payout Ratio (CP) (%)0.870.000.000.001.05
Earning Retention Ratio (%)98.950.000.000.0098.55
Cash Earning Retention Ratio (%)99.130.000.000.0098.95
Interest Coverage Ratio (X)4.703.820.733.785.54
Interest Coverage Ratio (Post Tax) (X)3.412.770.422.743.57
Enterprise Value (Cr.)3978.991612.721265.93882.671609.92
EV / Net Operating Revenue (X)1.100.590.670.400.71
EV / EBITDA (X)9.465.3221.763.155.28
MarketCap / Net Operating Revenue (X)1.020.450.450.220.59
Retention Ratios (%)98.940.000.000.0098.54
Price / BV (X)2.881.180.940.511.65
Price / Net Operating Revenue (X)1.020.450.450.220.59
EarningsYield0.050.11-0.050.260.08

Power Mech Projects Ltd Profitability Ratios (%)

Power Mech Projects Ltd Liquidity Ratios

Power Mech Projects Ltd Liquidity Ratios (%)

Power Mech Projects Ltd Interest Coverage Ratios (%)

Power Mech Projects Ltd Valuation Ratios

Fair Value / Intrinsic Value of Power Mech Projects Ltd

Fair Value: ₹5158.07

The stock is undervalued by 3.00% compared to the current price ₹5008

*Investments are subject to market risks

Strength and Weakness of Power Mech Projects Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 21.92%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -314.25, which is a positive sign.
  3. The company has higher reserves (695.92 cr) compared to borrowings (339.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (127.62 cr) and profit (139.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 157.87 and average Dividend Yield of 8.81%.
  2. The stock has a high average Working Capital Days of 102.17, which may not be favorable.

Should I Buy Power Mech Projects Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Power Mech Projects Ltd:
    1. Net Profit Margin: 5.98% (Higher values are generally favorable)
      • 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: 25.44% (Industry Average ROCE: 9.3%)
      • 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): 3.41 (Higher values, preferably > 2, are recommended)
      • 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: 1.49 (Higher values, preferably > 1, are recommended)
      • 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: 33.3 (Industry average Stock P/E: 80.3)
      • 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: 0.37 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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