Power Mech Projects Limited

BSE:539302 Stock Report

Market Cap: ₹79.8b

Power Mech Projects Valuation

Is 539302 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 539302 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 539302 (₹2523.55) is trading above our estimate of fair value (₹9.54)

Significantly Below Fair Value: 539302 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 539302?

Key metric: As 539302 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 539302. This is calculated by dividing 539302's market cap by their current earnings.
What is 539302's PE Ratio?
PE Ratio29.2x
Earnings₹2.73b
Market Cap₹79.84b

Price to Earnings Ratio vs Peers

How does 539302's PE Ratio compare to its peers?

The above table shows the PE ratio for 539302 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.2x
HGINFRA H.G. Infra Engineering
15.6x12.0%₹83.4b
532942 KNR Constructions
8x-33.4%₹88.1b
ASHOKA Ashoka Buildcon
6.8x-31.9%₹64.9b
532811 Ahluwalia Contracts (India)
18.3x11.5%₹62.1b
539302 Power Mech Projects
29.2x50.9%₹79.8b

Price-To-Earnings vs Peers: 539302 is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the peer average (12.2x).

Price to Earnings Ratio vs Industry

How does 539302's PE Ratio compare vs other companies in the IN Construction Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCCL Consolidated Construction Consortium
0.9xn/aUS$77.49m
533152 MBL Infrastructures
2.5xn/aUS$67.17m
ATLANTAA Atlantaa
2.4xn/aUS$48.21m
SKIL SKIL Infrastructure
0.1xn/aUS$14.31m
539302 29.2xIndustry Avg. 25.6xNo. of Companies23PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 539302 is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the Indian Construction industry average (25.6x).

Price to Earnings Ratio vs Fair Ratio

What is 539302's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

539302 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.2x
Fair PE Ratio69x

Price-To-Earnings vs Fair Ratio: 539302 is good value based on its Price-To-Earnings Ratio (29.2x) compared to the estimated Fair Price-To-Earnings Ratio (69x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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