Patels Airtemp (India) Ltd () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Patels Airtemp

KPT Industries

Galaxy Agrico

Loyal Equipments

Visaman Global

Karbonsteel Eng.

Lippi Systems

IKOMA Technologi

Shigan Quantum

Rappid Valves

Energy-Mission

Why is Patels Airtemp (India) Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -6.03% and Operating profit at -8.53% over the last 5 years

With a fall in Operating Profit of -70.59%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 5 consecutive quarters
NET SALES(Q) At Rs 15.52 cr has Fallen at -81.20%
PAT(Q) At Rs -0.62 cr has Fallen at -122.1%
INTEREST(9M) At Rs 7.77 cr has Grown at 26.75%

With ROCE of 9, it has a Very Attractive valuation with a 1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.51%, its profits have fallen by -51.9%

Majority shareholders : Non Institution

Below par performance in long term as well as near term

Along with generating -20.51% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Patels Airtemp should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Patels Airtemp for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Patels Airtemp

-20.51%

-0.37

56.09%

Sensex

-4.26%

-0.32

13.42%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.03%

EBIT Growth (5y)

-8.53%

EBIT to Interest (avg)

2.32

Debt to EBITDA (avg)

2.99

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.38

Tax Ratio

24.14%

Dividend Payout Ratio

15.97%

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

12.42%

ROE (avg)

9.36%

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

0.95

EV to EBIT

14.09

EV to EBITDA

11.41

EV to Capital Employed

0.96

EV to Sales

1.14

PEG Ratio

Dividend Yield

2.08%

ROCE (Latest)

8.99%

ROE (Latest)

4.12%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

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

1What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.53 times

-32What is not working for the Company

NET SALES(Q)

At Rs 15.52 cr has Fallen at -81.20%

PAT(Q)

At Rs -0.62 cr has Fallen at -122.1%

INTEREST(9M)

At Rs 7.77 cr has Grown at 26.75%

ROCE(HY)

Lowest at 9.38%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.93 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.37 times

PBDIT(Q)

Lowest at Rs 1.84 cr.

PBT LESS OI(Q)

Lowest at Rs -1.03 cr.

EPS(Q)

Lowest at Rs -1.13

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Here's what is working for Patels Airtemp

Debt-Equity Ratio - Half Yearly

Lowest at 0.53 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 Patels Airtemp

Net Sales - Quarterly

At Rs 15.52 cr has Fallen at -81.20%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -1.03 cr has Fallen at -129.34%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -0.62 cr has Fallen at -122.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 0.93 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Nine Monthly

At Rs 7.77 cr has Grown at 26.75%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 15.52 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 1.84 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -1.03 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -1.13

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.37 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio