Power Mech Projects Analysis

dividend

Pros

Cons

• Power Mech Projects is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
• No need to calculate the sustainability of Power Mech Projects's dividends as it is not paying a notable one for India.
• No need to calculate the sustainability of Power Mech Projects's dividends in 3 years as they are not expected to pay a notable one for India.
• Power Mech Projects is not paying a notable dividend for India, therefore no need to check if the payments are stable.
• Power Mech Projects's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Power Mech Projects's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Power Mech Projects is expected to become cash flow positive in 2 years.
• Power Mech Projects's earnings are expected to grow significantly at over 20% yearly.
• Power Mech Projects's earnings growth is expected to exceed the India market average.
• Power Mech Projects's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Power Mech Projects's earnings are expected to exceed the low risk growth rate next year.
• Power Mech Projects's net income is expected to increase by more than 50% in 2 years time.
• Performance (ROE) is expected to be above the current IN Construction industry average.
• An improvement in Power Mech Projects's performance (ROE) is expected over the next 3 years.
• Power Mech Projects's revenue growth is expected to exceed the India market average.

Cons

• Power Mech Projects is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Power Mech Projects's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Power Mech Projects's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Power Mech Projects is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Power Mech Projects is profitable, therefore cash runway is not a concern.
• Power Mech Projects is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 3.9x debt.
• Power Mech Projects's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (76.3% vs 46.1% today).
• Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
• Low level of unsold assets.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• Power Mech Projects's level of debt (46.1%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the Power Mech Projects board of directors is about average.
• More shares have been bought than sold by Power Mech Projects individual insiders in the past 3 months.

Cons

• Sajja's remuneration is higher than average for companies of similar size in India.
• Sajja's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

Pros

Cons

• Power Mech Projects is covered by less than 3 analysts.
• Power Mech Projects has significant price volatility in the past 3 months.

past

Pros

• Power Mech Projects's 1-year earnings growth exceeds its 5-year average (19.6% vs 17.5%)
• Power Mech Projects's year on year earnings growth rate has been positive over the past 5 years.
• Power Mech Projects used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
• Power Mech Projects has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• Power Mech Projects's earnings growth has exceeded the IN Construction industry average in the past year (19.6% vs 2.3%).

Cons

• Power Mech Projects has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Power Mech Projects's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Power Mech Projects's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Power Mech Projects is good value based on expected growth next year.
• Power Mech Projects is good value based on earnings compared to the IN Construction industry average.
• Power Mech Projects is good value based on earnings compared to the India market.
• NSEI:POWERMECH is up 8.8% outperforming the Construction industry which returned 7.1% over the past month.
• NSEI:POWERMECH is up 8.8% along with the India market (8%) over the past month.

Cons

• Power Mech Projects is overvalued based on assets compared to the IN Construction industry average.
• POWERMECH underperformed the Construction industry which returned -40% over the past year.
• POWERMECH underperformed the Market in India which returned -14.5% over the past year.