IPO note | Infrastructure
August 6, 2015
Power Mech Projects
SUBSCRIBE
sue Open: August 07, 2015
Is
Issue packs enough Power- SUBSCRIBE
Issue Close: August 11, 2015
Company background: Power Mech Projects (Power Mech), incorporated in 1999,
was founded by Mr Kishore Babu. Over the years, Power Mech has emerged as
Issue Details
the leading integrated power infrastructure services player at a pan-India level.
Face Value: `10
The company is in the business of providing Erection, Testing and Commissioning
(ETC) of Boilers, Turbines and Generators (BTG) and Balance of Plant (BOP)
Present Eq. Paid up Capital: `12.58cr
works. Also, in recent years Power Mech has built capabilities in Civil Works and
Fresh Issue: 0.21cr Shares
power plant Operation and Maintenance (O&M) services.
Offer for Sale: 0.21cr Shares
Order book/LTM sales at 2.4x: Power Mech, as of FY2015-end, was sitting on an
order book (OB, excluding suspended projects) of `3,216.6cr, which is 2.4x its
Post Eq. Paid up Capital: `14.71cr
FY2015 revenues. PowerMech is L1 in `800cr worth of orders, thereby taking the
Issue size (amount): `263-273cr
current OB to over `4,000cr. This gives strong revenue visibility. Notably, most of
the order wins are repeat business from clients like BHEL, NTPC and other SEBs.
Price Band: `615-640
Strong earnings growth to be seen during FY2015-17E: At the backdrop of order
Lot Size: 20 shares
inflow growth and average execution cycle of 25-36 months (for O&M contracts
Post-issue implied mkt. cap:
execution cycle stretches to 36 months), we expect Power Mech to report a strong
`904cr- 941cr
15.3% top-line and 24.2% bottom-line CAGR during FY2015-17E.
Promoters holding Pre-Issue: 75.7%
Comfortable D/E ratio: Power Mech enjoys a better working capital (WC)/sales
Promoters holding Post-Issue: 64.8%
ratio compared to its peers. In FY2015, Power Mech reported WC/sales ratio of
21.1% (vs an average of 34.7% of two of its closest industry peers - Sunil Hitech
and TechnoElectric Engineering). Also, O&M services tend to have a shorter WC
cycle. Owing to shorter WC cycle, Power Mech has been able to maintain its
debt/equity ratio at a comfortable level of 0.6x (as of FY2015-end). With `105cr
Book Building
of IPO proceeds to be used towards retirement of debt, we expect the D/E ratio to
QIBs
50% of issue
further decline, going forward.
Non-Institutional
15% of issue
Valuation: PowerMech is poised to deliver a healthy growth on the top-line as well
as the bottom-line front with better visibility on the award activity outlook.
Retail
35% of issue
Considering the outstanding OB, earnings growth prospects, comfortable D/E
ratio and attractive valuations (PowerMech is available at discount to its listed
power-focused EPC peers on Adj. P/E basis, at upper end of the issue price band),
Post Issue Shareholding Pattern
we advise investors with 12-month investment horizon to SUBSCRIBE to the issue.
Promoters Group
64.8
Key Financials (Standalone)
DIIs/FIIs/Public & Others
35.2
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Net Sales
933
1,187
1,356
1,539
1,801
% chg
42.4
27.3
14.2
13.6
17.0
Net Profit
50
68
71
83
109
% chg
(0.4)
36.3
3.5
17.6
31.3
EBITDA (%)
13.0
13.0
12.2
11.9
12.4
EPS (`)
46.6
62.4
56.2
56.6
74.3
P/E (x)
13.7
10.2
11.4
11.3
8.6
P/BV (x)
3.4
2.6
2.3
1.6
1.4
RoE (%)
28.0
28.7
22.5
17.9
17.4
RoCE (%)
32.8
35.1
26.5
22.9
23.4
Yellapu Santosh
EV/Sales (x)
0.8
0.7
0.7
0.6
0.5
022 - 3935 7800 Ext: 6811
EV/EBITDA (x)
6.2
5.2
5.8
5.1
4.2
[email protected]
Source: RHP, Angel Research; Note: FY2015 P/E ratio calculated on pre-IPO shares o/s and FY2016-17E
P/E ratio calculated on post IPO shares o/s; Valuation multiples at higher- end of the price band
Please refer to important disclosures at the end of this report
1
PowerMech Projects | IPO note
Issue Details
PowerMech is offering 0.42cr equity shares of `10 each via book building route in
a price band of `615-640, consisting of fresh equity issue of 0.21cr shares and
offer for sale by PE firm of 0.21cr equity shares.
Exhibit 1: Shareholding Pattern
Pre-Issue
Post-Issue
Particulars
No. of Shares
(%)
No. of Shares
(%)
Promoter Group
95,25,068
75.7
95,25,068
64.8
Retail & HNI Investors
5,54,932
4.4
12,99,732
8.8
Institutional Investors
25,02,764
19.9
38,85,880
26.4
Source: RHP, Angel Research
Objects of the Offer
`105cr of the IPO proceeds to be utilized for funding WC requirements.
Remaining ~`30cr for General corporate purposes.
August 6, 2015
2
PowerMech Projects | IPO note
Company details
Power Mech, incorporated in 1999, was founded by Mr Kishore Babu. Over the
years, Power Mech has emerged as a leading integrated power infrastructure
services player at a pan-India level. The company is in the business of providing
Erection, Testing and Commissioning (ETC) of Boilers, Turbines and Generators
(BTG) and Balance of Plant (BOP) works. Also, in recent years Power Mech has
built capabilities in Civil Works and power plants’ Operation and Maintenance
(O&M) services.
Erection Works: Since commencing its operations in 2003, Power Mech has
worked on 100+ erection works contracts. Power Mech provides ETC works for
both-BTG and BOP space of the power plants, including Ultra-Mega power plants
(UMPPs) and Super-critical power plants with unit capacities in150-800 MW. It also
provides erection work services to gas plants, HRSG, WHRB, CFBC boilers, steam
turbine generators, steam generators including auxiliaries, ESPs, hydro turbines
and BOP packages, including structural steel works, ash handling, coal handling,
fuel oil systems and high-pressure piping works.
Order book from Erection Services business as of FY2015-end stood at `2,113cr
(adj. for suspended works worth `189cr).
Operation and Maintenance (O&M) services: The O&M segment includes annual
maintenance contracts (AMCs), repairs, renovation and modernization, residual
life assessment, scheduled shutdowns, retro-fits, as well as overhauling,
maintenance and upgradation services for power plants. Power Mech has provided
O&M services for various projects in the Middle East, North Africa, South Asia and
South American markets. To-date PowerMech has been engaged in more than
400 O&M contracts.
Power Mech is a leading AMC services provider for power plants in India and this
business is expected to grow as a lot of new capacity additions have come from
IPPs in recent years. Currently, Power Mech is engaged in 23 O&M contracts with
unit capacity of 32,835MW.
Order book from O&M Services business, as of FY2015-end, stood at `513cr.
Civil Works: As a diversification move, Power Mech entered the Civil Works
business in 2011. Scope of Civil Works segment includes civil and structural works
contracts ancillary to the ETC-BTG projects. In this segment, Power Mech
undertakes a range of civil and structural works (such as area grading, leveling,
excavation, piling, mass concreting foundations for buildings, turbine/generator
decks and super-structures, fabrication and erection of structures, main plant bay
etc).
Order book from Civil Works business, as of FY2015-end, stood at `590cr.
August 6, 2015
3
PowerMech Projects | IPO note
Exhibit 2: Ongoing & L1 Projects
Sl.
Project Description/ Contract
Segment
Customer
No.
1
Solapur (2*660MW)
BTG
BGR
2
Suratgarh (2*660MW)
BTG
BHEL
3
Krishnapatnam (2*660MW)
BTG
BGR
4
Raichur (2*800MW)
BTG
BHEL
5
Kudgi (3*800MW)
BTG
Doosan
6
Nabinagar (3*660MW)
BTG
BHEL
Shuqaiq Steam Power Plant
MM Al Quraishi
7
BTG
(3*660MW)
Contracting Company
8
Raghunathpur (2*660MW)
BTG
BGR
9
Neyveli (2*550MW)
BTG
BHEL
10
Monrchak
Gas/Combined Cycle
NTPC-BHEL
11
Dahej
Gas/Combined Cycle
BHEL
12
Paradip
Gas/Combined Cycle
Simplex Infra, BHEL
13
Marib- Phase II (4*100MW)
Gas/Combined Cycle
Public Electricity Corp-Yemen
14
Mangalore
Gas/Combined Cycle
BHEL
15
Sasan UMPP (6*660MW)
BoP
R-Infra
16
Singatarai (600MW)
BoP
ABIR Infra Pvt. Ltd.
17
Talwandi (660MW)
BoP
SEPCO I
18
Raichur (2*800MW)
BoP
BHEL
19
Paguthan Power Plant (655MW)
AMCs
20
Bandel TPS (210MW)
O&M
Doosan
21
Barauni TPS (110MW)
O&M
BHEL
22
Avantha Power Project
O&M
Avantha
23
Nigrie (2*660MW)
O&M
Jaypee Group
24
Kothagudem TPS
BoP
TSGENCO
25
Jharsuguda TPS
O&M
Vedanta
26
Unchchar TPS
BTG
BHEL
Source: RHP, Angel Research
August 6, 2015
4
PowerMech Projects | IPO note
Investment rationale
Order book/LTM sales at 2.4x… depicting good revenue visibility
Power Mech, as of FY2015-end, was sitting on an order book (excluding
suspended projects) of `3,216.6cr, which is 2.4x its FY2015 revenues (LTM).
PowerMech is L1 in `800cr worth of orders, thereby taking the current OB to over
`4,000cr. This gives strong revenue visibility. Notably, most of the order wins are
repeat business from clients like BHEL, NTPC and other SEBs.
ETC works from the power generation sector contribute a major 65.7% to the total
order book, followed by O&M Works
(18.4%) and Civil Works
(15.9%),
respectively.
Exhibit 3: Order Book split (%)
O&M works,
18.4%
Civil works,
15.9%
Erection works,
65.7%
Source: RHP, Angel Research
Improved visibility on the Order Inflows
Power Mech reported 19.0% top-line and 17.1% bottom-line CAGR during
FY2011-15, in a challenging macro environment. This was in an environment,
when the entire power generation sector had been facing structural problems such
as fuel unavailability, deteriorating financial health of SEBs, and difficulty in getting
requisite clearances, amongst other issues. The new government’s steps such as,
(1) targeting to double Coal India (CIL)’s production by 2020 (some signs of ramp-
up in operations are already being seen), (2) fastening the clearances process for
large ticket projects, and (3) opening the mining sector to private players, reflect
the government’s focus towards reviving the ailing power generation sector.
Given that BHEL is the largest client of Power Mech, we studied the orders won by
the company in FY2015, which gives some visibility on the near-term bid-pipeline
of ETC companies (like Power Mech).
August 6, 2015
5
PowerMech Projects | IPO note
Exhibit 4: BHEL key Order Inflows (FY2015)
Plant Location
Capacity (MW)
TPC
Manuguru
1,080
5,000
Yelahanka
370
1,202
Kothagudem
800
3,810
Darlipalli
1,600
220
Ennore SEZ
1,320
7,800
Wanakbori
800
3,536
Totals
5,970
21,568
Source: Angel Research
We expect BHEL to award different BoP/BTG/EPC work packages from 5,970 MW
of projects it won in FY2015. In back-drop of awarding activity by BHEL, we expect
smaller companies like Power Mech to emerge as the beneficiaries.
Also, we looked at the bid pipeline for power generation equipment players, who
happen to be the clients of Power Mech. Based on our analysis, we expect over
39GW of BTG/BoP/EPC packages to be awarded during FY2016-17E.
August 6, 2015
6
PowerMech Projects | IPO note
Exhibit 5: Award activity for Power Gen. Equipments space
Year
Plant Location
Capacity (MW)
FY2016E
TSGENCO
Nalgonda
4,000
NTPC
Barethi
2,640
NTPC
Visakhapatnam
4,000
APGENCO
Krishnapatnam
800
SEPC
Tuticorin
525
APGENCO
Vijaywada
800
NTPC
Rourkela
250
NTPC
Karimnagar
1,600
NTPC
Katwa
1,320
NLC
Ghatampur
1,980
NTPC
Barah
1,000
Singereni
Adilabad
600
TANGENCO
Udangudi
1,320
Totals
20,835
FY2017E
NTPC
Maitree
1,320
NTPC
Telangana
2,400
NTPC-SAIL
Rourkela
4,000
NTPC
Bhagalpur
1,320
MAHAGENCO
Bhusawal
660
MAHAGENCO
Chandrapur
1,320
MAHAGENCO
Koradi
1,980
MAHAGENCO
Latur
1,320
APGENCO
Kothugudem
800
UPRVUNL
Hardauganj Ext.
660
UPRVUNL
Obra Extension
660
CIL
Hemgir
1,600
Singareni
Adilabad
600
Totals
18,640
Source: Angel Research
Management has indicated that it has limited competition when it comes to
comprehensive packages coming up for awarding; whereas, it faces competition
from over half a dozen players for smaller ticket projects. Based on their past track
record and market positioning, we expect Power Mech to report order wins of
`2,000cr/`2,500cr in FY2016E/FY2017E.
Strong earnings growth to be seen during FY2015-17E
At the backdrop of order inflow growth and average execution cycle of 25-36
months (for O&M contracts, the execution cycle stretches to 36 months), we expect
Power Mech to report strong 15.3% top-line and 24.2% bottom-line CAGR during
FY2015-17E.
Power Mech reported ~20% of its FY2015 revenues from the high margin O&M
business. Increased exposure to the O&M segment, which happens to be a high
EBITDA margin business, should act as a cushion to the company’s overall EBITDA
August 6, 2015
7
PowerMech Projects | IPO note
margins. However, we conservatively model EBITDA margins of 11.9%/12.4% for
FY2016/2017E, respectively.
With the IPO proceeds likely to be deployed for retiring working capital debt, we
expect savings on interest expenses, which should result in 24.2% PAT CAGR
during FY2015-17E to `109cr.
Efficient WC cycle leads to comfortable Balance Sheet…
Power Mech is one of the few companies that has been able to hold on to its WC
cycle despite deteriorating health of its clients. This could be owing to the following
reasons: (1) tendering by equipment manufacturers is made only after land
acquisition is done and all clearances are in place (2) scope of works for ETC
companies is usually 13/20% of the BTG/BOP packages, (3) company has a policy
of billing clients once a month instead of milestone based payments cycle followed
by EPC players. These reasons have led to a superior WC cycle for Power Mech in
comparison to its peers.
Exhibit 6: WC cycle as % of Sales
60
48.3
50
46.1
39.2
40
35.3
30
34.8
34.1
29.7
20
12.7
21.1
10
15.5
14.3
12.1
0
FY2012
FY2013
FY2014
FY2015
PowerMech
Sunil HiTech
TechnoElectric Engineering
Source: RHP, Angel Research
Power Mech enjoys a better WC/sales ratio in comparison to its peers. In FY2015,
Power Mech reported WC/sales ratio of 21.1% against average of 34.7% of two of
its closest industry peers - Sunil Hitech and TechnoElectric Engineering. Exposure to
O&M services is also a reason for shorter WC cycle.
Owing to shorter WC cycle, Power Mech has been able to maintain its debt/equity
ratio at comfortable levels of 0.6x (as of FY2015-end). With `105cr of IPO
proceeds to be used towards retirement of debt, we expect the D/E ratio to further
decline, going forward.
August 6, 2015
8
PowerMech Projects | IPO note
Better RoEs …
Diversification of Power Mech across sub-verticals within the power sector helped
the company build its order book in an atmosphere where peers were experiencing
decline in order inflows. Driven by continuously increasing order book, Power
Mech reported a strong 19.0% top-line and 17.1% bottom-line CAGR during
FY2011-15, respectively.
Exhibit 7: Top-line & Bottom-line CAGR (FY2011-15)
Exhibit 8: Return on Equity (%)
25
35
22.7
28.0
28.7
30
19.0
20
17.1
22.5
25
15
20
15
12.0
12.1
12.9
10
10
4.3
5
10.9
2.2
5
(0.6)
6.3
5.1
0
0
PowerMech
Sunil HiTech
TechnoElectric Eng.
FY2013
FY2014
FY2015
(5)
Top-line
PAT
PowerMech
Sunil HiTech
TechnoElectric Engineering
Source: RHP, Angel Research
Source: RHP, Angel Research
On the back of strong earnings growth, Power Mech reported an above-industry
RoE of 22.5-28.0% during FY2013-15.
Given our conservative earnings growth estimates and diluted equity, we expect
RoEs in FY2016/FY2017E to decline to 17.9%/17.4%, respectively, which is still
impressive.
August 6, 2015
9
PowerMech Projects | IPO note
Risks & Concerns
1. Prolonged delay in the award activity could act as risk to our estimates.
2. Loss of market share in the ETC-BTG/BOP awarding cycle could again act as
a threat to our estimates and view.
3.
56.4% of the current order book comes from the top 5 clients (declined from
64.7% in FY2014). Any change in outlook of the clients could act as a big risk
to our view and estimates.
4. Slow-down in ongoing power sector reforms, including SEB restructuring could
act as risk to our Order Inflow assumptions, as well as our estimates.
August 6, 2015
10
PowerMech Projects | IPO note
Outlook and Valuation
During FY2011-15, Power Mech (standalone entity) reported 19.0% and 17.1%
top-line and bottom-line CAGR, respectively. Company’s diversification strategy
has helped it grow its order book in an awarding down cycle. We expect some
tendering activity from BHEL for the projects it won in FY2015. Also, recent
government initiatives strengthen our view that over 39GW of awarding by state
run entities (SEBs/NTPC) would be made to power generation equipment
manufacturers in FY2016-17E, which further gives visibility on the ETC companies
bid pipeline.
On a whole, we expect order book of Power Mech to report healthy 16.6% CAGR
during FY2015-2017E to `4,377cr by FY2017E. This when coupled with Power
Mech’s focus to add more of high margin O&M works to its order book should act
as cushion against any fall in EBITDA margins. However, we conservatively
modeled decline in FY2016E EBITDA margins to
11.9% & thereafter slight
increased to 12.4% in FY2017E. We expect EBITDA to report 16.1% CAGR during
FY2015-17E.
In addition to EBITDA growth, we expect benefits flowing-in from lower interest
expenses (considering that `105cr of IPO proceeds would be used for debt
repayment coupled with interest rates entering a down-cycle). On a whole, we
expect the standalone entity to report a 24.2% bottom-line CAGR during FY2015-
17E to `109cr.
We are considering 2 of the closest power dependant EPC players, Sunil Hitech
(majorly into power EPC works) and TechnoElectric Engineering (84% of its FY2015
revenues were from power EPC space) for the purpose of peer group comparison.
Exhibit 9: Peer group comparison
Particulars
Revenues
EBITDA
Adj. PAT
EBITDA (%)
PAT (%)
EPS
Adj. P/E
CMP M-Cap
(` in cr)
FY14
FY15
FY14
FY15
FY14
FY15
FY15
FY15
FY14
FY15
FY15 (x)
Power Mech
640
1,327
1,187
1,356
154
165
68
71
12.2
5.2
62.4
56.2
11.4
Sunil Hitech
326
498
1,429
1,648
128
142
25
37
8.6
2.2
18.3
24.2
13.5
Techno Electric
522
2,978
698
785
182
199
88
105
25.4
13.4
15.3
18.4
28.3
Average
17.0
7.8
20.9x
Source: RHP, Angel Research; Note: FY2015 P/E ratio calculated on pre-IPO shares o/s and FY2016E-17E P/E ratio calculated on post IPO shares o/s;
Valuation multiples at higher- end of the price band
The above table clearly highlights that the Power Mech issue is at a discount to its
peers on FY2015E EPS estimates, even at the higher end of the price band. This is
despite PowerMech’s strong order book of over `4,000cr (which should translate
to strong earnings growth), comfortable D/E ratio, and higher return ratios (RoE’s
of Power Mech is higher than its peers).
On considering (1) standalone entity’s growth potential, (2) comfortable D/E ratio,
and (3) higher return ratios, we believe there exist’s potential for the stock to get
re-rated and generate returns in the log-run. Accordingly, we advise investors to
SUBSCRIBE to the issue, with 12-month investment horizon.
August 6, 2015
11
PowerMech Projects | IPO note
Profit & Loss Statement (Standalone)
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Net Sales
933
1,187
1,356
1,539
1,801
% Chg
42.4
27.3
14.2
13.6
17.0
Total Expenditure
812
1,033
1,190
1,356
1,579
Cost of RM Consumed
64
74
76
85
100
Contract Execution Expenses
672
838
977
1,108
1,291
Employee benefits Expense
67
107
118
137
159
Other Expenses
9
13
20
25
29
EBITDA
121
154
165
184
223
% Chg
6.7
27.6
7.0
11.2
21.2
EBIDTA %
13.0
13.0
12.2
11.9
12.4
Depreciation
33
33
37
39
44
EBIT
88
122
129
144
179
% Chg
16.8
39.0
5.7
12.2
23.9
Interest and Fin. Charges
17
26
29
28
22
Other Income
5
12
6
8
6
PBT
75
107
105
124
163
Exceptional Items
0
0
0
0
0
Tax
25
39
35
41
54
% of PBT
33.5
36.1
32.8
33.0
33.0
PAT
50
68
71
83
109
% Chg
(0.4)
36.3
3.5
17.6
31.3
PAT %
5.4
5.8
5.2
5.4
6.1
Basic EPS
46.6
62.4
56.2
56.6
74.3
Diluted EPS
46.6
62.4
56.2
56.6
74.3
% Chg
(0.4)
34.0
(10.0)
0.7
31.3
Note: Till FY2015 EPS calculated on pre-IPO shares o/s and from FY2016E onwards calculated on
post IPO shares o/s
August 6, 2015
12
PowerMech Projects | IPO note
Balance Sheet (Standalone)
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Sources of Funds
Equity Capital
11
11
13
15
15
Reserves Total
192
263
341
558
666
Networth
203
273
354
573
680
Total Debt
122
175
227
178
155
Other Long-term Liabilities
83
94
64
74
78
Long-term Provision
0
0
0
0
0
Total Liabilities
408
542
645
824
913
Application of Funds
Gross Block
262
298
339
370
411
Accumulated Depreciation
92
124
160
200
243
Net Block
169
173
178
171
168
Capital WIP
7
7
9
8
8
Investments
0
5
7
10
13
Other Current Assets
109
161
241
278
340
Inventories
19
24
31
43
60
Sundry Debtors
174
148
194
231
280
Cash and Bank Balance
57
69
67
168
154
Loans & Advances
130
193
260
299
360
Current Liabilities
356
412
506
556
650
Net Current Assets
133
183
286
463
544
Other Assets
98
173
165
173
180
Total Assets
408
542
645
824
913
August 6, 2015
13
PowerMech Projects | IPO note
Cash Flow Statement (Standalone)
Y/E March (` cr)
FY13
FY14
FY15
FY16E
FY17E
Profit before tax
75
107
105
124
163
Depreciation
33
33
37
39
44
Other Adjustments
(5)
(7)
(6)
(8)
(6)
Change in Working Capital
(74)
(99)
(118)
(75)
(98)
Interest & Financial Charges
17
26
29
28
22
Direct taxes paid
(26)
(33)
(37)
(42)
(54)
Cash Flow from Operations
22
26
10
67
71
(Inc)/ Dec in Fixed Assets
(36)
(36)
(44)
(30)
(42)
(Inc)/ Dec in Invest. & Int. received
(3)
(9)
6
61
2
Cash Flow from Investing
(39)
(45)
(38)
31
(40)
Inc./ (Dec.) in Borrowings
41
44
59
(50)
(23)
Issue/ (Buy Back) of Equity
0
0
0
138
0
Dividend Paid (Incl. Tax)
(1)
(1)
(2)
(2)
(2)
Finance Cost
(15)
(23)
(29)
(27)
(21)
Cash Flow from Financing
25
20
28
59
(46)
Inc./(Dec.) in Cash
8
1
0
157
(14)
Opening Cash balances
2
9
11
11
168
Closing Cash balances
9
11
11
168
154
August 6, 2015
14
PowerMech Projects | IPO note
Ratio Analysis (Standalone)
Y/E March
FY13
FY14
FY15
FY16E
FY17E
Valuation Ratio (x)
P/E (on FDEPS)
13.7
10.2
11.4
11.3
8.6
P/CEPS
8.2
6.9
7.5
7.7
6.2
Dividend yield (%)
6.4
4.3
6.4
6.4
6.4
EV/Sales
0.8
0.7
0.7
0.6
0.5
EV/EBITDA
6.2
5.2
5.8
5.1
4.2
EV / Total Assets
1.8
1.5
1.5
1.1
1.0
Per Share Data (`)
EPS (Basic)
46.6
62.4
56.2
56.6
74.3
EPS (fully diluted)
46.6
62.4
56.2
56.6
74.3
Cash EPS
77.7
92.4
85.3
83.3
104.0
DPS
1.0
1.5
1.0
1.0
1.0
Book Value
189.0
250.0
281.3
389.8
462.9
Returns (%)
RoCE (Pre-tax)
32.8
35.1
26.5
23.0
23.4
Angel RoIC (Pre-tax)
35.4
36.0
26.5
26.3
27.3
RoE
28.0
28.7
22.5
17.9
17.4
Turnover ratios (x)
Asset Turnover (Gross Block) (x)
3.5
4.2
4.3
4.3
4.6
Inventory / Sales (days)
6
7
7
9
10
Receivables (days)
63
50
46
50
52
Payables (days)
48
59
63
58
52
Leverage Ratios (x)
D/E ratio (x)
0.6
0.6
0.6
0.3
0.2
Interest Coverage Ratio (x)
5.5
5.1
4.6
5.5
8.5
Note: FY2015 P/E ratio calculated on pre-IPO shares o/s and FY2016E-17E P/E ratio calculated on
post IPO shares o/s; Valuation multiples at higher- end of the price band
August 6, 2015
15
PowerMech Projects | IPO note
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