Check Before You Invest : Perfect Infraengineers Ltd

Snapshot

Q.1 Which industry/sub-sector does Perfect Infraengineers Ltd belong to?

Perfect Infraengineers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering segment.

Q.2 Is Perfect Infraengineers Ltd a good quality company?

Perfect Infraengineers Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Perfect Infraengineers Ltd undervalued or overvalued?

Perfect Infraengineers Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Perfect Infraengineers Ltd a good buy now?

Perfect Infraengineers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd revenue growth is -18.2% for FY-2024, which is below its 5-year CAGR of -10.21%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Return on capital employed is 0.91% for FY-2024, which is below its 5-year historical median of 1.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Return on Asset is 2.14%, which is above its 5-year historical median of 0.09%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Return on equity is 3.06% for FY-2024, which is above its 5-year historical median of 0.18%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Cash conversion cycle is 1143 days, above its 5-year historical median of 1034 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.15	0.14
ROE	3.06	0.18
ROCE	0.91	1.3
Cash Conversion Cycle	1143 days	1034 days

Q.6 Gross Profit margin of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.7% for FY-2024, which is above its 5-year median of 16.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.03% for FY-2024, which is above its 5-year median of 20.32% indicating increasing margins.

Q.8 Net Profit Margin of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Net Profit Margin is 13.94% for FY-2024, is above with its 5-year median of 0.65%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	19.7	16.9
Operating Profit Margin	23.03	20.32
Net Profit Margin	13.94	0.65

Q.9 Debt to Equity ratio of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Debt-to-Equity ratio is 0.24, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Perfect Infraengineers Ltd?

Perfect Infraengineers Ltd Debt to cash flow from operations is -1.27, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Perfect Infraengineers Ltd?

Promoters hold 30.65% of the Perfect Infraengineers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Perfect Infraengineers Ltd vs industry peers?

Perfect Infraengineers Ltd revenue CAGR is -10.21%, compared to the industry median CAGR of 11.42%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-18.2	11.4
Gross Profit Growth	-4.9	16.2
Operating Profit Growth	-6.9	16.8
Net Profit Growth	36.7	29

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.15	0.71
ROE	3.06	8.26
ROCE	0.91	10.15
Cash Conversion Cycle (days)	1143.36	99

Valuation & price assessment

Q.1 Stock return of Perfect Infraengineers Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -27.65% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-27.7%	-53.5%	-84.8%

Q.3 Valuation ratios of Perfect Infraengineers Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	4.69	43.75	29.85
Price to Book	-	0.78	2.38
Price to Sales	0.65	4.78	2.23
EV to EBITDA	6.93	19.43	15.78

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