Pa­tels Airtemp (In­dia) Ltd

Money Times - - Bull’s Eye -

(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.

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