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Petron Engineering Construction Ltd Stock Analysis

Small Cap
Evaluated by 281 users | BSE: 530381 | NSE: PETRONENGG |
Engineering - Construction
Petron Engineering Construction Limited, a Petron Group company started operations in 1976 and based on the professional deliverance and commitment levels of the workforce and vision of the management had scaled heights and achieved feats in the field of Mechanical constructions for process...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 23.28%23.74%20.42%6.27%7.76%7.01%8.64%1.25%-68.05%-3.03%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 571507713524376414407329234134
Y-o-Y Gr. Rt.--11.1%40.6%-26.5%-28.2%10.1%-1.7%-19.3%-28.9%-42.9%
Adjusted EPS (Rs.) 32.5440.8143.910.276.29-2.485.48-19.11-233.67-20.99
Y-o-Y Gr. Rt.-25.4%7.6%-99.4%2229.6%-139.4%NA-448.7%NANA
Book Value per Share (Rs.) 122.65161.39201.52201.63206.67206.73212.52249.0519.1-1.47
Adjusted Net Profit 24.530.833.10.24.7-1.94.1-14.4-176-15.8
Net Op. Cash Flow (Rs. Cr.) 21.261.2-53.1-13.257.837.839.324.8-28-40.1
Debt to Cash Flow from Ops 2.350.46-2.39-14.292.733.883.234.51-5.2-5.53
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Petron Engineering Construction Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -14.9%-18.7%-31%-42.9%
Adjusted EPS -195.3%-227.3%-256.5%NA
Book Value per Share -161.2-137.2-119.1-107.7
Share Price -36% -52.2% -66.4% -39.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 2827.1923.20.132.97-1.162.52-8.15-174.28-237.99
Operating Profit Margin (%) 9.6912.3111.346.5212.4899.133.08-92.673.8
Net Profit Margin (%) 4.36.074.640.041.26-0.451.01-4.38-75.3-11.84
Debt to Equity 0.540.230.831.241.010.940.790.610.11-200.32
Working Capital Days 143219212292431424435503510560
Cash Conversion Cycle 8012152-6-25-2-12-52-37-73
Entity Percentage Holding
Promoters 72.47%
Institutions 0.01%
Non-Institutions 27.52%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Petron Engineering Construction Ltd's performance infers:

Petron Engineering Construction Ltd earnings have declined by -227.3%, whereas share price has depreciated -52.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Petron Engineering Construction Ltd share prices over the last 10 years. Here is what we found out:

Petron Engineering Construction Ltd share price has depreciated -35.2% annually over the past ten years.

Petron Engineering Construction Limited, a Petron Group company started operations in 1976 and based on the professional deliverance and commitment levels of the workforce and vision of the management had scaled heights and achieved feats in the field of Mechanical constructions for process industry and infrastructure sector. The cmpany achieved sales of  Rs 2450 Million in last financial year and the workforce strength grew to more than 12000.

The Petron Group is a giant in the field

Petron Engineering Construction Limited, a Petron Group company started operations in 1976 and based on the professional deliverance and commitment levels of the workforce and vision of the management had scaled heights and achieved feats in the field of Mechanical constructions for process industry and infrastructure sector. The cmpany achieved sales of  Rs 2450 Million in last financial year and the workforce strength grew to more than 12000.

The Petron Group is a giant in the field of industrial construction .The Group is a competitive, high technology-oriented EPC player that strives to conduct its business in full compliance with international safety, management and quality standards. Headquartered in Mumbai, India, the Group is expanding its activities rapidly in India and the Global markets like Khazakhistan, Turkmenistan, Middle East and Far East through a strategy of selecting the best international partners in the appropriate sectors, especially of the oil and gas industry.

Petron is powered by its vast reserve of resources of  quality manpower, sophisticated equipment and machinery and track record for timely contracts execution, towards rapid business growth and profitability.

Petron offers innovative solutions for the installation of Refineries, Petrochemicals, Fertilizers, Power and Cement Plants. Petron also offers specialized service in the field of Refractory and Insulation works.

The company excelled in the fields of its operations and the repeat orders are the testimony of the deliverance and client satisfaction achieved. Petron Engineering Construction has 600 engineers and around 5500 skilled workmen.

Subsidiary :Petron civil engineering pvt ltd is the subsidiary of the company.

Services offered by the company:

  • Petrochemical plants
  • Cement plant construction
  • Tankages / other fields
  • Refineries
  • Fired heaters / crackers / reformers
  • Power plant
  • Fertiliser plants
  • Electrical / instrumentation work
  • Insulation & refractory
  • Petron manufacturing
  • Petrofab – fabrication division
  • Metallurgical/pharmaceuticals & other miscellaneous plants

Clientele

The clients of the company includes HPCL, TICB, Sterlite Industries, Grasim, GSFC, National Cement, RCF, Madras Cement, BPCL, Nirma Ltd, Zuari Agro Chemicals and many more.

Achievements/ recognition :

  • Awarded by BHEL for conducting hydro test of Unit III boiler.
  • Awarded by Chennai Petroleum Corporation ltd. At Engineers India Ltd on completion of 2.1 million man hours of work without any lost time of work.
  • Awarded by Reliance Industries ltd. for work of fabrication and erection of structures of polypropylene project.
  • Awarded LSTK work of CDU/VDU/NSU/KERO HEATERS and APH system by Mangalore Refinery and Petrochemicals ltd. for MRPL Project on single point responsibility.
  • Awarded certificate of compliance by PETROFAB.
  • Awarded by BHEL for being the most safety conscious agency working for BHEL in 2001.
  • Awarded by for being the most safety conscious agency working for BHEL in 2004.
  • Awarded by Reliance Industries ltd for completion of Flare Stack Erection without Lost time incident.
  • Awarded by OBAJANA Cement PLC.
  • Awarded by ADANI Power ltd. for completion of hydraulic test of Unit III boiler.

Future plan : In the coming years, it plans to open offices in Republic of Kazakhstan, Far East region and Middle East for meeting the Global expansion plan and to bring business volumes in the current fields of operation and to take PETRON in an all together different league of front running organisations.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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