Mehabe score: 3 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Patels Airtemp (India) is engaged in the manufacture and sale of extensive range of Heat Exchangers such as Shell & Tube Type, Finned Tube Type and Air Cooled Heat Exchangers, Pressure Vessels, Air-conditioning and Refrigeration equipments and Turnkey HVAC Projects in India & marketing of equipments even outside India.Site:517417
Market Cap:
Rs 97.6 cr
Price:
193.0
Trading pe:
8.48x
Book-value:
177/share
Div yield:
1.30 %
Earning yield:
17.93%
Face-value:
10.0/share
52week high:
196.95
52week low:
94.05
Technical Analysis
Stock trades at 193.0, above its 50dma 162.04. It also trades above its 200dma 144.72. The stock remains bullish on techicals
The 52 week high is at 196.95 and the 52week low is at 94.05
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.09 times its book value
Weakness
– has a low return on equity of 11.77% for last 3 years.
-Contingent liabilities of Rs.61.19 Cr.
Competition
– The industry trades at a mean P/E of 20.0x. HLE Glascoat trades at the industry’s max P/E of 92.57x. 517417 trades at a P/E of 8.48x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. 517417 has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 2.0%. The max 1- month return was given by Patels Airtemp: a return of 16.13 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 72.1 cr compared to Rs 71.48 cr for period ended Mar 2020, a rise of 0.9%
Operating Profits reported at Rs 7.3 cr for period ended Mar 2021 vis-vis 6.04 for period ended Mar 2020 .
Operating Margins expanded 167.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.94 compared to Rs 6.57 for previous quarter ended Dec 2020 and Rs 6.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 255.0 cr for period ended Mar 2021 vis-vis sales of Rs 237.0 cr for the period ended Mar 2020, a growth of 7.1%. The 3 year sales cagr stood at 17.3%.
Net Profit reported at Rs 11.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020,
Company recorded a Net Profit CAGR of 6.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 13.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 69% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is 19% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is 7% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 52.79% vis-vis 52.79% for Dec 2020
Conclusion
– Stock is trading at 1.09 times its book value – has a low return on equity of 11.77% for last 3 years.
-Contingent liabilities of Rs.61.19 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 162.04 and is trading at 193.0, thus bullish price action wise.
