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.

Which are the latest news on Patil Automation?

Why is Patil Automation falling/rising?

As of 05-Dec, Patil Automation Ltd's stock price is rising to 194.30, despite a recent weekly decline of 6.43%. The stock has increased by 12.09% over the past month, outperforming the Sensex, and is trading above key moving averages, indicating a generally positive long-term trend.

As of 05-Dec, Patil Automation Ltd's stock price is rising, currently at 194.30, reflecting an increase of 0.9 (0.47%). This upward movement comes despite a recent decline in the stock's performance over the past week, where it has fallen by 6.43%. However, the stock has shown a significant positive trend over the past month, with a rise of 12.09%, outperforming the Sensex, which increased by only 2.30% during the same period.<BR><BR>Today's performance is reported as inline with the sector, and the stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive trend in the longer term. Nonetheless, it is worth noting that the stock is currently below its 5-day moving average, which may suggest short-term volatility.<BR><BR>Additionally, there has been a decline in investor participation, with delivery volume dropping by 31.49% compared to the 5-day average. Despite this decrease in participation, the stock remains liquid enough for trading, which could support its price stability. Overall, the combination of recent positive monthly performance and current trading conditions contributes to the stock's rising price.