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PTC India Ltd. Stock Analysis

Small Cap
Evaluated by 3602 users | BSE: 532524 | NSE: PTC |
Power Generation/Distribution
PTC Indiaincorporated in 1999 as Power Trading Corporation of India is a public-private partnership. The company was started with an objective of providing credit risk mitigation to private sector power project developers.  The company is engaged in the business of trading activities that...

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.
PTC India Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.5%5.44%5.64%10.77%7.98%10.26%10.26%10.39%8.83%8.35%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8,9997,6508,85711,51113,08212,47614,07518,18913,49616,443
Y-o-Y Gr. Rt.--15%15.8%30%13.7%-4.6%12.8%29.2%-25.8%21.8%
Adjusted EPS (Rs.) 4.663.454.328.626.828.369.6110.698.8110.81
Y-o-Y Gr. Rt.--26%25.2%99.5%-20.9%22.6%15%11.2%-17.6%22.7%
Book Value per Share (Rs.) 73.6575.9978.584.7389.1397.47103.87108.76112.43118.68
Adjusted Net Profit 138102128255202247284316261320
Net Op. Cash Flow (Rs. Cr.) -147-853452234258-181941-299-482-235
Debt to Cash Flow from Ops 00000-4.050.77-2.31-2.02-3.54
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.
PTC India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.9%4.7%5.3%21.8%
Adjusted EPS 9.8%9.7%4%22.7%
Book Value per Share 5.45.94.55.6
Share Price -4.4% -6.2% -27.5% -21.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.434.65.5910.557.848.969.5510.057.979.36
Operating Profit Margin (%) 1.581.911.932.812.12.452.2123.072.67
Net Profit Margin (%) 1.531.331.442.221.541.982.021.741.931.95
Debt to Equity 000000.250.230.210.290.24
Working Capital Days 3898111807911311483132140
Cash Conversion Cycle 13424932262921153644
Entity Percentage Holding
Promoters 16.22%
Institutions 41.63%
Non-Institutions 42.13%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of PTC India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that PTC India Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of PTC India Ltd.'s performance infers:

PTC India Ltd. earnings have grown by 9.7%, whereas share price has depreciated -6.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

PTC India Ltd. share price has depreciated -9.9% annually over the past ten years.

PTC Indiaincorporated in 1999 as Power Trading Corporation of India is a public-private partnership. The company was started with an objective of providing credit risk mitigation to private sector power project developers.  The company is engaged in the business of trading activities that includes long term trading of power generated from large power projects as well as short term trading in India.

PTC acts as intermediary between buyer and sellers of power. In case of

PTC Indiaincorporated in 1999 as Power Trading Corporation of India is a public-private partnership. The company was started with an objective of providing credit risk mitigation to private sector power project developers.  The company is engaged in the business of trading activities that includes long term trading of power generated from large power projects as well as short term trading in India.

PTC acts as intermediary between buyer and sellers of power. In case of cross-border trading, the company plays the role of a nodal agency. It offers advisory services for setting up independent power producing plants.

The company has signed MoUs with various captive power plants to purchase and sale of excess power. The capacity tied-up through these MoU s are more than 28,000 MW from projects based on domestic coal, imported coal, and also using hydro a n d gas as fuel.

In such a short span it has emerged as a Rs 2400 crore company. PTC India Financial Services (PFS) is an investment special purpose vehicle (SPV) of PTC India (PTC). This subsidiary was formed to offer financial services to the energy sector. PFS has invested in various projects such as power, fuel sources, related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers like transformers, conductors, insulators, cables etc.

Business areas

Long Term solutions- The company has entered into power purchase agreements (PPAs) with independent power producers (IPPs) /power utilities located in India and abroad. It has also entered into power sale agreements (PSAs) with users / state electricity boards on long term basis. These PPAs and PSAs range between 10 to 35 years. The company has already entered various agreements to the tune of about 10500 MW of power from various power projects.

Short Term Solutions- Under this, the company undertakes short term trading of power in order to balance supply demand mismatches happening during any part of the day. It provides power sale solutions for part of the day.

Solutions for Captives and Industrial Consumers- In India captive power plants lessen gap between demand and supply of electricity. PTC supplies power from captive power units to industrial consumers belonging in same region.

Recent Development

PTC India is raising Rs 5 billion via an equity issue to strengthen its business.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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