The stock’s recent performance contrasts sharply with broader market trends. While the Sensex opened flat and later edged higher by 0.09% to trade at 84,749.82, Patels Airtemp (India) underperformed its sector by 0.63% today. The Sensex remains close to its 52-week high of 85,290.06, trading just 0.64% below that peak, supported by mega-cap stocks leading the gains. In comparison, Patels Airtemp’s stock price has declined by 6% over the last five days, underscoring a notable divergence from the overall market momentum.
Technical indicators further highlight the stock’s weak position. Patels Airtemp is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This persistent weakness in price levels suggests a lack of short- to long-term upward momentum, which is often a cause for investor caution.
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Examining the company’s financial performance over the past year reveals several challenges. Patels Airtemp (India) has generated a return of -65.76% over the last 12 months, a stark contrast to the Sensex’s positive 9.24% return in the same period. The stock’s 52-week high was Rs.693.90, indicating a substantial decline from that peak to the current low of Rs.230.
Long-term growth metrics show subdued expansion. Net sales have grown at an annual rate of 4.87% over the last five years, while operating profit has expanded at a rate of 2.99% annually during the same period. These figures suggest modest growth in revenue and profitability, which may not have met market expectations for a company in the industrial manufacturing sector.
Recent quarterly results have reflected further pressures. The company reported a 43.35% fall in operating profit in the quarter ending September 2025, which was characterised as very negative. Additionally, Patels Airtemp declared negative results for two consecutive quarters, with profit after tax (PAT) for the quarter at Rs.0.66 crore, down by 79.0%. This decline in profitability has contributed to the stock’s subdued performance.
Return on capital employed (ROCE) for the half-year period stands at 10.44%, which is among the lowest levels recorded by the company. The operating profit to interest coverage ratio for the quarter is also at a low of 1.60 times, indicating tighter margins for servicing debt obligations. These financial ratios highlight constraints on the company’s operational efficiency and capital utilisation.
Over the longer term, Patels Airtemp’s performance has been below par relative to broader market indices. The stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in generating returns comparable to its peers and the wider market.
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Despite these challenges, certain valuation metrics present a contrasting picture. The company’s ROCE of 12.5% is considered attractive relative to some peers, and the enterprise value to capital employed ratio stands at 0.9, indicating a valuation discount compared to historical averages within the sector. This suggests that the stock is trading at a lower valuation relative to its capital base and earnings potential.
Profitability trends over the past year also show a decline, with profits falling by 28.2%. The majority of the company’s shares are held by non-institutional investors, which may influence trading patterns and liquidity considerations.
In summary, Patels Airtemp (India) has experienced a significant decline to its 52-week low of Rs.230, reflecting a combination of subdued financial performance, negative quarterly results, and technical weakness. While the broader market and sector indices have shown resilience, the stock’s performance remains under pressure, with valuation metrics indicating a discount relative to peers. Investors analysing this stock should consider these factors in the context of the company’s recent financial disclosures and market positioning.
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