ScoreWhy is Patel Engineering Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.73%
- Poor long term growth as Net Sales has grown by an annual rate of 12.64% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.44 times
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 21-Jan-25 and has generated -22.84% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
88.67% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
4
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -0.93% in the last 1 year, its fall in the stock was much higher with a return of -32.86%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Goods)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Patel Engineerin for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Patel Engineerin
-32.92%
-0.74
44.39%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.64%
EBIT Growth (5y)
25.01%
EBIT to Interest (avg)
1.10
Debt to EBITDA (avg)
6.72
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.71
Tax Ratio
26.19%
Dividend Payout Ratio
0
Pledged Shares
88.67%
Institutional Holding
9.25%
ROCE (avg)
8.43%
ROE (avg)
4.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
33
Price to Book Value
0.91
EV to EBIT
6.59
EV to EBITDA
5.69
EV to Capital Employed
0.93
EV to Sales
0.89
PEG Ratio
0.14
Dividend Yield
NA
ROCE (Latest)
13.22%
ROE (Latest)
7.36%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
ROCE(HY)
Highest at 14.42%
DEBT-EQUITY RATIO(HY)
Lowest at 0.40 times
PBT LESS OI(Q)
At Rs 79.62 cr has Grown at 20.9% (vs previous 4Q average
PAT(Q)
Highest at Rs 124.35 cr.
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.01 times
NON-OPERATING INCOME(Q)
is 42.80 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Patel Engineerin
Profit After Tax (PAT) - Quarterly
At Rs 124.35 cr has Grown at 85.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 67.15 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 79.62 cr has Grown at 20.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 65.83 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 124.35 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.40 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Patel Engineerin
Non Operating Income - Quarterly
is 42.80 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 7.01 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 59.57 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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