Patel Engineering Ltd (PATELENG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Interarch Build.

PSP Projects

Capacit'e Infra.

Patel Engineerin

BGR Energy Sys.

Ceigall India

Ramky Infra

Bondada Engineer

EPack PrefabTech

Anantam Highways

M & B Engineer.

Why is Patel Engineering Ltd ?

Negative results in Sep 25

OPERATING CF(Y) Lowest at Rs 368.32 Cr
NET SALES(Q) At Rs 1,208.47 cr has Fallen at -7.5% (vs previous 4Q average)
PBDIT(Q) Lowest at Rs 158.68 cr.

88.67% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -43.18% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Patel Engineerin for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Patel Engineerin

-43.09%

-1.17

36.95%

Sensex

4.66%

0.36

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.17%

EBIT Growth (5y)

70.47%

EBIT to Interest (avg)

1.42

Debt to EBITDA (avg)

3.94

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.80

Tax Ratio

22.57%

Dividend Payout Ratio

Pledged Shares

88.67%

Institutional Holding

7.61%

ROCE (avg)

10.69%

ROE (avg)

6.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.83

EV to EBIT

6.70

EV to EBITDA

5.76

EV to Capital Employed

0.86

EV to Sales

0.80

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

12.89%

ROE (Latest)

9.91%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

PAT(Latest six months)

At Rs 171.45 cr has Grown at 24.93%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 609.29 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.40 times

-11What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 368.32 Cr

NET SALES(Q)

At Rs 1,208.47 cr has Fallen at -7.5% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 158.68 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 13.13%

PBT LESS OI(Q)

Lowest at Rs 56.44 cr.

NON-OPERATING INCOME(Q)

is 52.83 % of Profit Before Tax (PBT

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Here's what is working for Patel Engineerin

Profit After Tax (PAT) - Latest six months

At Rs 171.45 cr has Grown at 24.93%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 609.29 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.40 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Patel Engineerin

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 56.44 cr has Fallen at -29.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 79.80 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 368.32 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

At Rs 1,208.47 cr has Fallen at -7.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,306.29 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 158.68 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 13.13%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 56.44 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 52.83 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 63.20 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income