Power Mech Projects (BSE:539302) - Share price, News & Analysis

539302 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

539302 Stock Overview

Power Mech Projects Limited provides services in power and infrastructure sectors in India and internationally.

Rewards

Trading at 9.4% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 10.2% per year over past 5 years

Has a high level of debt

Power Mech Projects Competitors

Larsen & Toubro

BSE:500510

₹2.2t

General Electric

NYSE:GE

US$82.6b

Bharat Heavy Electricals

BSE:500103

₹169.6b

Price History & Performance

Summary of all time highs, changes and price drops for Power Mech Projects
Historical stock prices
Current Share Price	₹876.30
52 Week High	₹1,094.70
52 Week Low	₹577.30
Beta	0.75
1 Month Change	-1.50%
3 Month Change	-5.97%
1 Year Change	48.66%
3 Year Change	-6.09%
5 Year Change	47.46%
Change since IPO	49.60%

Shareholder Returns

	539302	IN Construction	IN Market
7D	-11.0%	-4.4%	-3.2%
1Y	48.7%	7.0%	9.0%

Return vs Industry: 539302 exceeded the Indian Construction industry which returned 4.5% over the past year.

Return vs Market: 539302 exceeded the Indian Market which returned 9.7% over the past year.

Price Volatility

Is 539302's price volatile compared to industry and market?
539302 volatility
539302 Average Weekly Movement	5.5%
Construction Industry Average Movement	7.1%
Market Average Movement	7.2%
10% most volatile stocks in IN Market	10.0%
10% least volatile stocks in IN Market	4.7%

Stable Share Price: 539302 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 539302's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	7,823	Sajja Babu	https://www.powermechprojects.in

Power Mech Projects Limited provides services in power and infrastructure sectors in India and internationally. The company engages in the erection, testing, and commissioning of boilers, turbines, and generators; balance of plant works for the power sector; provision of integrated industrial construction services; and operation and maintenance, repair, overhauling, renovation, and modernization of power plants and related civil works, as well as undertakes projects in the hydrocarbon, oil and gas, and steel industries. It also undertakes various civil foundation, building, and architectural work projects for power plants and other infrastructure projects; designs and engineers transmission line, sub-station, railways overhead electrification, distribution network, and electrical and instrumentation works; and manufactures components for high capacity pumps, spare parts for hydro and thermal power plant components, components for railway electrification, and facilities and processes, as well as re-blades turbines.

Power Mech Projects Fundamentals Summary

How do Power Mech Projects's earnings and revenue compare to its market cap?
539302 fundamental statistics
Market Cap	₹12.89b
Earnings (TTM)	₹1.27b
Revenue (TTM)	₹25.63b

10.1x

P/E Ratio

0.5x

P/S Ratio

Is 539302 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
539302 income statement (TTM)
Revenue	₹25.63b
Cost of Revenue	₹18.21b
Gross Profit	₹7.42b
Other Expenses	₹6.15b
Earnings	₹1.27b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 21, 2022

Earnings per share (EPS)	86.35
Gross Margin	28.96%
Net Profit Margin	4.95%
Debt/Equity Ratio	58.6%

How did 539302 perform over the long term?

See historical performance and comparison

Valuation

Is Power Mech Projects undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 539302 (₹876.3) is trading below our estimate of fair value (₹967.44)

Significantly Below Fair Value: 539302 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 539302 is good value based on its PE Ratio (10.1x) compared to the Indian Construction industry average (16.4x).

PE vs Market: 539302 is good value based on its PE Ratio (10.1x) compared to the Indian market (19.9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539302's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 539302 is overvalued based on its PB Ratio (1.3x) compared to the IN Construction industry average (1x).

Future Growth

How is Power Mech Projects forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.0%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Power Mech Projects has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Power Mech Projects performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 539302 has high quality earnings.

Growing Profit Margin: 539302 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 539302's earnings have declined by 10.2% per year over the past 5 years.

Accelerating Growth: 539302 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 539302 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (22%).

Return on Equity

High ROE: 539302's Return on Equity (13.2%) is considered low.

Financial Health

How is Power Mech Projects's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 539302's short term assets (₹17.6B) exceed its short term liabilities (₹11.6B).

Long Term Liabilities: 539302's short term assets (₹17.6B) exceed its long term liabilities (₹1.6B).

Debt to Equity History and Analysis

Debt Level: 539302's net debt to equity ratio (50.4%) is considered high.

Reducing Debt: 539302's debt to equity ratio has increased from 36.4% to 58.6% over the past 5 years.

Debt Coverage: 539302's debt is well covered by operating cash flow (22.5%).

Interest Coverage: 539302's interest payments on its debt are well covered by EBIT (3.9x coverage).

Balance Sheet

Dividend

What is Power Mech Projects's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 539302's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 539302's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 539302's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539302's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 539302 is not paying a notable dividend for the Indian market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 539302 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average board tenure

CEO

Sajja Babu (58 yo)

no data

Tenure

Mr. Sajja Kishore Babu is Founder of Power Mech Projects Ltd and has in depth knowledge of this sector & serves as its Chairman and Managing Director & joined on July 22, 1999. Mr. Babu serves as a Directo...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Sajja's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Sajja's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 539302's board of directors are considered experienced (7.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31