Patil Automation

Is Patil Automation overvalued or undervalued?

As of September 17, 2025, Patil Automation is considered overvalued with a valuation grade of "expensive," reflected by its high PE ratio of 36.56, EV to EBITDA of 28.17, and Price to Book Value of 7.97, all exceeding industry averages and its peers like Larsen & Toubro.

As of 17 September 2025, the valuation grade for Patil Automation has moved from does not qualify to expensive. This indicates that the company is currently overvalued. Key ratios highlight this assessment, with a PE ratio of 36.56, an EV to EBITDA of 28.17, and a Price to Book Value of 7.97, all of which are significantly higher than industry norms.<BR><BR>In comparison to peers, Patil Automation's PE ratio exceeds that of Larsen & Toubro, which stands at 32.69, and its EV to EBITDA is also higher than Larsen & Toubro's 16.99. Other competitors like CG Power & Ind and Siemens are categorized as very expensive, with PE ratios of 124.33 and 62.04, respectively. Notably, Patil Automation's stock has underperformed against the Sensex over the past week and month, further reinforcing the notion of overvaluation.

How has been the historical performance of Patil Automation?

Patil Automation's historical performance shows strong growth, with net sales increasing to 118.05 crore in March 2025 from 115.28 crore in 2024, and profit after tax rising to 11.70 crore from 7.84 crore. Key metrics such as operating profit margin and earnings per share also improved significantly.

Answer:<BR>The historical performance of Patil Automation shows a positive trend in key financial metrics over the past year.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Patil Automation reported net sales of 118.05 crore, an increase from 115.28 crore in March 2024. The total operating income mirrored this growth, reaching 118.05 crore, while total expenditure remained relatively stable at 102.78 crore compared to 102.77 crore the previous year. Operating profit (PBDIT) rose to 19.26 crore from 15.95 crore, reflecting an improved operating profit margin of 12.94%, up from 10.85%. Profit before tax also increased to 15.18 crore from 11.22 crore, leading to a profit after tax of 11.70 crore, significantly higher than 7.84 crore in the prior year. The company's earnings per share improved to 7.3 from 5.19, and the PAT margin rose to 9.91% from 6.8%. On the balance sheet, total assets grew to 114.67 crore from 91.25 crore, with total liabilities also increasing to 114.67 crore from 91.25 crore. Cash flow from financing activities turned positive at 8 crore, contrasting with a negative 11 crore in the previous year, resulting in a net cash inflow of 3 crore, up from an outflow of 7 crore. Overall, Patil Automation demonstrated strong growth in revenue and profitability, alongside improved cash flow management.

Why is Patil Automation Ltd falling/rising?

As of 16-Mar, Patil Automation Ltd's stock price is rising to 142.50, driven by positive market sentiment and increased investor participation. However, it has a year-to-date decline of 20.68% and is trading below its moving averages, indicating potential long-term weaknesses despite current positive indicators.

As of 16-Mar, Patil Automation Ltd's stock price is rising, currently at 142.50, with a change of 0.55 (0.39%) upward. This increase can be attributed to several factors. Notably, the stock has outperformed its sector by 0.62% today, indicating positive market sentiment relative to its peers. Additionally, there has been a significant rise in investor participation, with delivery volume increasing by 31.15% compared to the 5-day average, suggesting growing interest among investors.<BR><BR>However, it is important to note that despite the current rise, the stock has experienced a decline over the longer term, with a year-to-date drop of 20.68%. It is also trading lower than its moving averages across various time frames, which may indicate underlying weakness. Nevertheless, the company's high management efficiency, reflected in a return on equity (ROE) of 23.11%, and a low debt-to-equity ratio of 0.11 times, contribute to a fair valuation and may support the stock's current upward movement. Overall, while there are positive indicators today, the stock's longer-term performance remains a concern.

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