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Check Before You Invest : Power Mech Projects Ltd

BSE: 539302 NSE: POWERMECH ISIN: INE211R01019
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Power Mech Projects Ltd belong to?
Power Mech Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Power Mech Projects Ltd a good quality company?
Power Mech Projects Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Power Mech Projects Ltd undervalued or overvalued?
Power Mech Projects Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Power Mech Projects Ltd a good buy now?
Power Mech Projects Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Power Mech Projects Ltd?
Power Mech Projects Ltd revenue growth is 24.4% for FY-2025 , which is above its 5 year CAGR of 19.3% , indicating faster growth.
Q.2 Gross Profit margin of Power Mech Projects Ltd?
Power Mech Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025 , which is above its 5 year median of 9.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Power Mech Projects Ltd?
Power Mech Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.57% for FY-2025 , which is above its 5 year median of 11.15% indicating increasing margins.
Q.4 Net Profit Margin of Power Mech Projects Ltd?
Power Mech Projects Ltd Net Profit Margin is 6.64% for FY-2025 , is above with its 5 year median of 5.76%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 10.5 9.2
Operating Profit Margin 11.57 11.15
Net Profit Margin 6.64 5.76
Q.5 Return on Asset of Power Mech Projects Ltd?
Power Mech Projects Ltd Return on Asset is 7.85%, which is above its 5 year historical median of 6.67%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Power Mech Projects Ltd?
Power Mech Projects Ltd Return on equity is 17.39% for FY-2025 , which is above its historical median of 15.96%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Power Mech Projects Ltd?
Power Mech Projects Ltd Return on capital employed is 23.1% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Power Mech Projects Ltd?
Power Mech Projects Ltd Cash conversion cycle is 32 days, above its historical median of 19 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.18 1.14
ROE 17.39 15.96
ROCE 23.1 22.25
Cash Conversion Cycle 32 days 19 days
Q.9 Debt to Equity ratio of Power Mech Projects Ltd?
Power Mech Projects Ltd Debt-to-Equity ratio is 0.33 , which is lower with the industry average of 0.38 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Power Mech Projects Ltd?
Power Mech Projects Ltd Debt to cash flow from operations is 977.35 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Power Mech Projects Ltd?
Promoters hold 58.42% of the Power Mech Projects Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Power Mech Projects Ltd vs industry peers?
Power Mech Projects Ltd revenue CAGR is 19.31% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,234.1 103.6
Gross Profit 549.6 5.2
Operating Profit 604 6
Net Profit 348 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.18 0.63
ROE 17.39 6.64
ROCE 23.1 11.13
Cash Conversion Cycle (days) 32.25 51

Valuation & price assessment

Q.1 Stock return of Power Mech Projects Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 22.9% 52.4% 24% -15.2%
Q.3 Valuation ratios of Power Mech Projects Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 21.48 9.12 27.03
Price to Book 3.05 0.70 1.70
Price to Sales 1.25 0.33 1.45
EV to EBITDA 10.2 5.37 11.36

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