Porwal Auto Components was incorporated in the year 1992 as an ancillary
to M/s. Eicher Motors Limited now VE Commercial Vehicles Ltd. (A Volvo
Group and Eicher Motors joint venture). Over the years, PACL has
registered impressive growth and has established itself as a trusted
supplier of Quality Castings and gained recognition from its customers
for Outstanding Contribution to Parts Development and Supply Chain
Management.
Porwal Auto Components (PACL) is engaged in the manufacture of a variety of Ductile Iron, Grey Cast Iron Steel and Steel Alloy Casting Components and Subassemblies.
The co. has quality client base like Besides VE Commercial Vehicles, the company caters to Force Motors, Tata Motors, JCB, BHEL, TAFE, Eicher Tractors, Crompton Greaves etc.
The co. registered sales of 67.55 and 3.45 Net profit for the current nine month. In FY 2017 expected the company to register sales and net profit of Rs 104.19 crore and Rs 4.64 crore respectively. EPS for FY 2017 works out to Rs 3.1.
The share price trades at Rs 41. P/E works out to 12.8.
Key Financial Ratio Mar-16
Basic EPS (Rs.) 1.48
Book Value 34.32
Net Profit Margin (%) 2.70
Return on Networth / 4.31
Equity (%)
Return on Capital 3.81
Employed (%)
Total Debt/Equity (X) 0.15
EV/EBITDA (X) 4.39
Price/BV (X) 0.59
Looking to the Auto industries booming and strong promoters and good client base the stock is worth to add in portfolio for medium to long term.
Porwal Auto Components (PACL) is engaged in the manufacture of a variety of Ductile Iron, Grey Cast Iron Steel and Steel Alloy Casting Components and Subassemblies.
The co. has quality client base like Besides VE Commercial Vehicles, the company caters to Force Motors, Tata Motors, JCB, BHEL, TAFE, Eicher Tractors, Crompton Greaves etc.
The co. registered sales of 67.55 and 3.45 Net profit for the current nine month. In FY 2017 expected the company to register sales and net profit of Rs 104.19 crore and Rs 4.64 crore respectively. EPS for FY 2017 works out to Rs 3.1.
The share price trades at Rs 41. P/E works out to 12.8.
Key Financial Ratio Mar-16
Basic EPS (Rs.) 1.48
Book Value 34.32
Net Profit Margin (%) 2.70
Return on Networth / 4.31
Equity (%)
Return on Capital 3.81
Employed (%)
Total Debt/Equity (X) 0.15
EV/EBITDA (X) 4.39
Price/BV (X) 0.59
Looking to the Auto industries booming and strong promoters and good client base the stock is worth to add in portfolio for medium to long term.
Sir, thanks for the new recommendation.Sir, i have noticed that the company over last 10 yrs has accumlated a cCFO of abt 20 cr and performed a Capex of 41cr, so there was abt 21cr excess spending. At the same time i have noticed that the company has reduced its debt and didnt increase the share capital then how did they do that with extra borrowing? i am not sure if i am missing something in my analysis.
ReplyDeleteSir,Actually i dont have 10 yrs data for spending but may be possible that promoter might have reduced their holding and used for capex.
ReplyDeleteThank you Sir
ReplyDelete