Prabha Energy

Why is Prabha Energy Ltd falling/rising?

As of 07-Aug, Prabha Energy Ltd's stock price is rising to Rs 157.35, up 5.25%. Despite recent gains and positive short-term performance, the stock has weak long-term fundamentals and a significant decline over the past year, indicating uncertainty in its long-term viability.

As of 07-Aug, Prabha Energy Ltd's stock price is rising, currently at Rs 157.35, reflecting a change of Rs 7.85 or 5.25% increase. This upward movement can be attributed to several factors. Firstly, the stock has outperformed the sector by 5.1% today and opened with a significant gain of 6.72%. Additionally, it reached an intraday high of Rs 159.55, indicating strong buying interest at the start of the trading session.<BR><BR>In terms of recent performance, the stock has shown a positive trend over the past week, with a return of +6.25%, compared to a modest +0.52% increase in the Sensex. Furthermore, the company reported positive financial results for the latest six months, with a higher profit after tax (PAT) of Rs 0.39 crore and the highest quarterly profit before depreciation, interest, and tax (PBDIT) at Rs 0.32 crore.<BR><BR>However, it is important to note that despite the current rise, the stock has a weak long-term fundamental strength, with a negative EBITDA of Rs -0.07 crore and a high debt to EBITDA ratio, which raises concerns about its long-term viability. The stock has also underperformed significantly over the past year, with a return of -38.78%. This mixed performance suggests that while there may be short-term gains, the long-term outlook remains uncertain.

Which are the latest news on Prabha Energy?

Are Prabha Energy Ltd latest results good or bad?

Prabha Energy Ltd's latest results show a mixed performance, with a 190% increase in net profit and a positive operating margin, but revenue remains low at ₹1.69 crore and the return on equity is weak at 0.13%. While there are signs of recovery, the company faces significant operational challenges, leading to a cautious outlook.

Prabha Energy Ltd's latest results present a mixed picture. On one hand, the company has shown significant improvements in certain metrics for Q1 FY27. Net profit increased by an impressive 190% quarter-on-quarter, reaching ₹0.29 crore, and revenue grew by 49.56% year-on-year to ₹1.69 crore. Additionally, the operating margin has turned positive at 18.93%, a notable recovery from a negative margin in the previous year.<BR><BR>However, despite these improvements, the absolute figures remain concerning. The revenue is still quite low, especially considering the company's market capitalization of ₹2,028 crore. The return on equity (ROE) is extremely weak at just 0.13%, indicating that the company is struggling to generate meaningful returns for shareholders. Moreover, the company has a history of significant revenue decline, with annual revenues dropping dramatically from ₹33 crores in FY23 to just ₹2 crores in FY24.<BR><BR>The overall financial performance suggests that while there are signs of recovery, Prabha Energy is still facing substantial operational challenges. The volatility in its quarterly results and the low revenue base raise questions about the sustainability of this recovery. Therefore, while there are some positive indicators, the company still has significant hurdles to overcome, making the outlook cautious.

Should I buy, sell or hold Prabha Energy Ltd?

What does Prabha Energy do?

Prabha Energy Ltd is a small-cap oil company focused on generating electrical power through various methods. As of March 2026, it reported net sales of 1 Cr and a market cap of INR 2,173 Cr.

Overview: <BR>Prabha Energy Ltd is a small-cap company in the oil industry that focuses on generating electrical power through various conventional and non-conventional methods.<BR><BR>History: <BR>Prabha Energy Limited was incorporated on 5 August 2009 as 'Prabha Energy Private Limited'. The company has not undergone any status changes since its incorporation. The latest quarterly results reported net sales and profit for the period ending March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 1 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 0 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 2,173 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 3,687.00 <BR>Industry P/E: 25 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.36 <BR>Return on Equity: 0.13% <BR>Price-to-Book: 4.92 <BR><BR>Contact Details: <BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

How big is Prabha Energy?

As of 10th June, Prabha Energy Ltd has a market capitalization of 2,173.00 Cr, with Net Sales of 6.10 Cr and a Net Profit of 0.58 Cr reported in the latest four quarters. Shareholder's Funds are 438.03 Cr and Total Assets amount to 635.54 Cr as of March 2025.

As of 10th June, Prabha Energy Ltd has a market capitalization of 2,173.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, Prabha Energy reported Net Sales of 6.10 Cr and a Net Profit of 0.58 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 438.03 Cr and Total Assets totaling 635.54 Cr.

Who are the peers of the Prabha Energy?

Prabha Energy's peers include Savita Oil Tech, Deep Industries, Antelopus Selan, and others, with varying management and growth risks. Prabha Energy has below-average management and capital structure, and its 1-year return is -35.71%, the lowest among its peers.

Peers: The peers of Prabha Energy are Savita Oil Tech, Deep Industries, Antelopus Selan, Veedol Corporat, Hind.Oil Explor., Panama Petrochem, Jindal Drilling, Asian Energy, Dolphin Offshore.<BR><BR>Quality Snapshot: Excellent management risk is observed at Deep Industries, Antelopus Selan, and Jindal Drilling, while Average management risk is found at Savita Oil Tech, Veedol Corporat, Hind.Oil Explor., Panama Petrochem, Asian Energy, and Dolphin Offshore, and the rest. Below Average management risk is present at Prabha Energy and Deep Industries. In terms of Growth, Excellent growth is noted at Deep Industries, Antelopus Selan, and Dolphin Offshore, while Average growth is seen at Prabha Energy, and the rest. Below Average growth is observed at Savita Oil Tech, Veedol Corporat, Hind.Oil Explor., Panama Petrochem, and Asian Energy. Excellent capital structure is attributed to Savita Oil Tech, Deep Industries, Antelopus Selan, Jindal Drilling, and the rest, while Good capital structure is found at Hind.Oil Explor. and Dolphin Offshore, and Below Average capital structure is noted at Prabha Energy.<BR><BR>Return Snapshot: Antelopus Selan has the highest 1-year return at 21.57%, while Prabha Energy has the lowest at -35.71%. Prabha Energy's 1-year return is significantly lower than that of its peers. Additionally, Veedol Corporat and Prabha Energy have negative six-month returns.

How has been the historical performance of Prabha Energy?

Prabha Energy's historical performance shows declining profitability, with net sales increasing to 3.95 Cr but total expenditure rising significantly to 5.81 Cr, resulting in a worsening operating profit of -1.42 Cr. The company also faces increased liabilities and negative cash flow from operations, indicating ongoing financial challenges.

Answer:<BR>The historical performance of Prabha Energy shows a decline in profitability and an increase in operational costs over the past year.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, Prabha Energy reported net sales of 3.95 Cr, an increase from 2.79 Cr in March 2024. However, total expenditure rose significantly to 5.81 Cr from 3.76 Cr, leading to an operating profit (PBDIT) of -1.42 Cr, worsening from -0.51 Cr the previous year. The company’s profit before tax also deteriorated to -2.03 Cr from -1.25 Cr, resulting in a profit after tax of -1.40 Cr compared to -0.95 Cr in the prior year. The operating profit margin (excluding other income) fell to -47.09% from -34.77%, while the profit after tax margin decreased to -35.44% from -34.05%. On the balance sheet, total liabilities increased to 635.54 Cr from 602.36 Cr, with long-term borrowings rising sharply to 118.57 Cr from 75.28 Cr. Total assets also grew to 635.54 Cr from 602.36 Cr, but the company faced a net current asset deficit of -13.19 Cr. Cash flow from operating activities remained negative at -6.00 Cr, a slight improvement from -43.00 Cr in the previous year, while cash flow from investing activities worsened to -43.00 Cr from -25.00 Cr. Overall, Prabha Energy's financial performance reflects increasing operational challenges and declining profitability.

When is the next results date for Prabha Energy?

The next results date for Prabha Energy is 12 August 2025.

The next results date for Prabha Energy is scheduled for 12 August 2025.

Is Prabha Energy overvalued or undervalued?

As of March 20, 2025, Prabha Energy is considered risky and overvalued, with a PE ratio of -1971.44 and an EV to EBITDA of -1601.58, indicating severe financial distress compared to peers like NTPC Ltd. and Tata Power Co., which have significantly better valuation metrics.

As of 20 March 2025, the valuation grade for Prabha Energy has moved from does not qualify to risky, indicating a significant deterioration in its perceived financial health. The company is currently overvalued, with a PE ratio of -1971.44, an EV to EBITDA ratio of -1601.58, and a Price to Book Value of 6.53. These ratios highlight severe financial distress, particularly the negative earnings multiples, which suggest that the market has little confidence in the company's ability to generate profits.<BR><BR>In comparison to its peers, Prabha Energy stands out unfavorably; for instance, NTPC Ltd. has a PE ratio of 13.78 and an EV to EBITDA of 10.37, while Tata Power Co., Ltd. shows a PE of 31.57 and an EV to EBITDA of 12.92. This stark contrast underscores the overvaluation of Prabha Energy, especially given its negative return metrics and the lack of dividend yield. Recent stock performance shows a decline of 0.48% over the past week, while the Sensex has gained 1.36%, further reinforcing the notion that Prabha Energy is not aligned with broader market trends.

Who are the top shareholders of the Prabha Energy?

The top shareholders of Prabha Energy are the Shantilal Savla Family Trust with 29.92%, followed by public shareholder Dharen Shantilal Savla at 9.12%, and individual investors with a combined 16.59%. There are also 10 foreign institutional investors holding 0.58%, with no pledged promoter holdings or mutual fund involvement.

The top shareholders of Prabha Energy include the Shantilal Savla Family Trust, which holds the largest stake at 29.92%. Additionally, Dharen Shantilal Savla is the highest public shareholder with a holding of 9.12%. The company also has individual investors holding a combined 16.59%. In terms of institutional investors, there are 10 foreign institutional investors (FIIs) that collectively hold 0.58% of the shares. Notably, there are no pledged promoter holdings or mutual fund schemes involved.

Has Prabha Energy declared dividend?

No Dividend History Available