Patels Airtemp (India) Ltd
(BSE Code: 517417) (CMP: Rs.202.40) (FV: Rs.10)
Incorporated in 1973, Patels Airtemp (India) Ltd manufactures and sells heat exchangers, pressure vessels, airconditioning equipment and refrigeration equipment. It offers air cooled heat exchangers, Dow Therm condensers and coolers, shell and tube heat exchanges, inter and after coolers, tube in tube process heat exchanges, oil coolers, bare tube heat exchangers, shell and tube Dx-chillers, air heaters, H.P. and L.P. feed water heaters, pressure vessels, surface condensers, columns, steam coil air heaters, LPG-bullets, shell and tube condensers, etc. It also offers domestic consumer products comprising window and split air conditioners, ceiling suspended units, condensing units, fan coil units, ductable units, floor mounted units and packaged units. In addition, it undertakes various turnkey projects in the areas of air-conditioning, textile humidification, evaporative cooling systems, clean room requirements, pressurization and ventilation systems, dust extraction systems, humidification, air washer plants, etc. It provides turnkey solutions to HVAC problems. Its products primarily serve power projects and refineries as well as fertilizer, cement, petrochemical, pharmaceutical, textile and chemical industries. The company also exports to Indonesia, UK, Sri Lanka, Mauritius, Ukraine, Jordan, UAE, Germany and Italy.
With an equity capital of Rs.5.07 crore and reserves of Rs.62.03 crore, the company’s share book value works out to Rs.132 and its P/BV is around 1.4x. The promoter holds 47.25% of the equity capital, which leaves 52.75% stake with the investing public.
For FY17, the company posted 10% higher net profit at Rs.7.87 crore on higher sales of Rs.136.15 crore fetching an EPS of Rs.15.51. During Q4FY17, its net profit jumped 41% to Rs.2.61 crore on 42% higher sales of Rs.53.74 crore fetching an EPS of Sales 53.74 37.90 136.15 126.65
Rs.2.61. It declared 25% dividend for FY17 with the book closure PBT 3.89 3.01 12.20 11.09
date as 11 September 2017. Tax 1.28 1.15 4.34 3.94
Currently, the stock trades at a P/E of just 13.05x and looks PAT 2.61 1.85 7.87 7.15
attractive for investment at the current level. Investors can buy EPS in (Rs.) 5.15 3.65 15.51 14.10
this stock with a stop loss of Rs.170. On the upper side, it could zoom to Rs.225-260 levels in the medium-to-long-term.