Power Mech Projects Limited

NSEI:POWERMECH Stock Report

Market Cap: ₹79.8b

Power Mech Projects Valuation

Is POWERMECH 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 POWERMECH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POWERMECH (₹2525.2) is trading above our estimate of fair value (₹9.54)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for POWERMECH 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
POWERMECH Power Mech Projects
29.2x50.9%₹79.8b

Price-To-Earnings vs Peers: POWERMECH 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 POWERMECH's PE Ratio compare vs other companies in the IN Construction Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCCL Consolidated Construction Consortium
0.9xn/aUS$81.32m
533152 MBL Infrastructures
2.5xn/aUS$67.18m
ATLANTAA Atlantaa
2.4xn/aUS$48.21m
SKIL SKIL Infrastructure
0.1xn/aUS$14.30m
POWERMECH 29.2xIndustry Avg. 25.1xNo. of Companies23PE01632486480+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: POWERMECH is expensive based on its Price-To-Earnings Ratio (29.2x) compared to the Indian Construction industry average (25.1x).

Price to Earnings Ratio vs Fair Ratio

What is POWERMECH'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.

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

Price-To-Earnings vs Fair Ratio: POWERMECH 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.

Discover undervalued companies

J. Kumar Infraprojects

₹52.1b

Engages in the construction business in India.

JKIL

₹687.95

7D

-1.7%

1Y

65.2%

IRB Infrastructure Developers

₹287.5b

Engages in the infrastructure development business in India.

IRB

₹47.60

7D

-0.3%

1Y

21.9%

Jamna Auto Industries

₹39.8b

Engages in the manufacture and sale of tapered leaf, parabolic springs, and lift axles under the JAI brand in India and internationally.

520051

₹99.85

7D

-4.2%

1Y

-12.5%