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Check Before You Invest : Promax Power Ltd

BSE: 543375 NSE: ISIN: INE0I2F01015
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Promax Power Ltd belong to?
Promax Power Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Promax Power Ltd a good quality company?
Promax Power Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Promax Power Ltd undervalued or overvalued?
Promax Power Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Promax Power Ltd a good buy now?
Promax Power 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 Promax Power Ltd?
Promax Power Ltd revenue growth is 10.2% for FY-2025 , which is below its 5 year CAGR of 53.6% , indicating slower growth.
Q.2 Gross Profit margin of Promax Power Ltd?
Promax Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.8% for FY-2025 , which is above its 5 year median of 1.2% , indicating increasing margins.
Q.3 Operating Profit Margin of Promax Power Ltd?
Promax Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.97% for FY-2025 , which is above its 5 year median of 3.91% indicating increasing margins.
Q.4 Net Profit Margin of Promax Power Ltd?
Promax Power Ltd Net Profit Margin is 3.53% for FY-2025 , is above with its 5 year median of 1.3%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 4.8 1.2
Operating Profit Margin 6.97 3.91
Net Profit Margin 3.53 1.3
Q.5 Return on Asset of Promax Power Ltd?
Promax Power Ltd Return on Asset is 3.66%, which is above its 5 year historical median of 2.11%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Promax Power Ltd?
Promax Power Ltd Return on equity is 8.11% for FY-2025 , which is above its historical median of 5.38%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Promax Power Ltd?
Promax Power Ltd Return on capital employed is 11.01% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Promax Power Ltd?
Promax Power Ltd Cash conversion cycle is 134 days, above its historical median of 98 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.04 1.58
ROE 8.11 5.38
ROCE 11.01 11.01
Cash Conversion Cycle 134 days 98 days
Q.9 Debt to Equity ratio of Promax Power Ltd?
Promax Power Ltd Debt-to-Equity ratio is 0.65 , which is above with the industry average of 0.38 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Promax Power Ltd?
Promax Power Ltd Debt to cash flow from operations is -6.43 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Promax Power Ltd?
Promoters hold 68.97% of the Promax Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Promax Power Ltd vs industry peers?
Promax Power Ltd revenue CAGR is 53.63% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 66.4 103.6
Gross Profit 3.2 5.2
Operating Profit 4.6 6
Net Profit 2.3 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.04 0.63
ROE 8.11 6.64
ROCE 11.01 11.13
Cash Conversion Cycle (days) 134.2 51

Valuation & price assessment

Q.1 Stock return of Promax Power Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -8.24% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - -8.2% -46.2%
Q.3 Valuation ratios of Promax Power Ltd vs historical?
The current P/E is lower 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 18.15 114.50 27.03
Price to Book 1.41 2.77 1.70
Price to Sales 0.64 1.50 1.45
EV to EBITDA 10.91 39.45 11.36

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