BSE:500346

Stock Analysis Report

Punjab Communications

Executive Summary

Punjab Communications Limited manufactures and sells telecommunication and IT equipment, and solutions in India.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Punjab Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500346's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

500346

5.0%

IN Communications

-3.6%

IN Market


1 Year Return

-36.4%

500346

-58.2%

IN Communications

-32.1%

IN Market

Return vs Industry: 500346 exceeded the Indian Communications industry which returned -58.1% over the past year.

Return vs Market: 500346 underperformed the Indian Market which returned -32.1% over the past year.


Shareholder returns

500346IndustryMarket
7 Day0%5.0%-3.6%
30 Day2.7%-23.8%-25.1%
90 Day-17.3%-41.1%-30.2%
1 Year-36.4%-36.4%-57.7%-58.2%-30.7%-32.1%
3 Year-77.1%-77.1%-32.9%-34.1%-19.8%-24.1%
5 Year-80.6%-80.6%27.7%23.3%-10.4%-15.2%

Price Volatility Vs. Market

How volatile is Punjab Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Punjab Communications undervalued compared to its fair value and its price relative to the market?

0.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500346's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500346's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500346 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: 500346 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500346's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500346 is good value based on its PB Ratio (0.2x) compared to the IN Communications industry average (0.6x).


Next Steps

Future Growth

How is Punjab Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.8%

Forecasted Tech 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 Punjab Communications 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.


Next Steps

Past Performance

How has Punjab Communications performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500346 is currently unprofitable.

Growing Profit Margin: 500346 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500346 is unprofitable, but has reduced losses over the past 5 years at a rate of 15.4% per year.

Accelerating Growth: Unable to compare 500346's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500346 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (1.3%).


Return on Equity

High ROE: 500346 has a negative Return on Equity (-15.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is Punjab Communications's financial position?


Financial Position Analysis

Short Term Liabilities: 500346's short term assets (₹1.0B) exceed its short term liabilities (₹562.9M).

Long Term Liabilities: 500346's short term assets (₹1.0B) exceed its long term liabilities (₹41.7M).


Debt to Equity History and Analysis

Debt Level: 500346 is debt free.

Reducing Debt: 500346 had no debt 5 years ago.


Balance Sheet

Inventory Level: 500346 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500346's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 500346 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 500346 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Punjab Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500346's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500346's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500346's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500346's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500346's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

Rajat Agarwal (41yo)

0.25

Tenure

Mr. Rajat Agarwal, CA, lAS, has been Senior Vice Chairman of Punjab Communications Ltd., since April 25, 2018 and has been its Managing Director since January 13, 2020. Mr. Agarwal, is a 2003 Batch IAS Off ...


Board Members

NamePositionTenureCompensationOwnership
Jagdeep Bhatia
CFO, Head of Finance1.92yrs₹3.12mno data
Rajat Agarwal
Senior Vice Chairman & MD0.25yrno datano data
Ved Chandan
Independent Non-Executive Director16.42yrs₹70.00kno data
Satinder Singh
lndependent Director1.58yrsno datano data
Neena Singh
Independent Non-Executive Director5.08yrs₹70.00kno data
Vini Mahajan
Chairperson1.67yrsno datano data
Moti Sharma
Independent Director1.58yrsno datano data

1.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 500346's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Punjab Communications Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Punjab Communications Limited
  • Ticker: 500346
  • Exchange: BSE
  • Founded: 1981
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: ₹132.259m
  • Shares outstanding: 12.02m
  • Website: https://www.puncom.com

Number of Employees


Location

  • Punjab Communications Limited
  • B-91, Phase-VIII
  • Industrial area
  • Chandigarh
  • Punjab
  • 160071
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500346BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1996

Biography

Punjab Communications Limited manufactures and sells telecommunication and IT equipment, and solutions in India. It offers transmission products, such as add/drop multiplexers for managed voice and data services; power line carrier communication equipment for the transmission and reception of speech, fax, RTU data, and tele-protection signals over high voltage overhead transmission lines of electric utilities; line matching units for safety and protection of the powerline carrier equipment; and SDH range of products. The company also provides switch mode rectifier modules for telecom and datacom industrial applications. In addition, it offers IT and technology services comprising design, development, implementation, maintenance, and support services in IT consultancy, ERP and business solutions, and network management areas; and consultancy services covering various technology domains, including hardware, software, networking, Internet, telecom, etc. for the online computerization of functions. Further, the company provides repair and maintenance services; and contract manufacturing services in the field of information technology and telecommunication, as well as undertakes turnkey projects, including installation, commissioning, and maintenance of range of telecommunications equipment. It primarily serves telecom users, corporates, service providers, railways, power sector, government, and security agencies. The company was founded in 1981 and is headquartered in Chandigarh, India. Punjab Communications Limited is a subsidiary of Punjab Information & Communication Technology Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 12:38
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.