PEL reported a surprise topline growth of 33% YoY for Q4FY11 but bottomline dipped by 50%YoY, due to lower operating profit at 8.1% vs 12.6% in Q4FY10. During the quarter interest cost jumped by 58% YoY to Rs728mn, which includes interest cost of ~Rs250mn towards its Noida real estate project. Adjusting for sale of property in Jogeshwari, operating margin further dips to 5.6% (Cons) and 4.2% (Stand) and adj conso PAT posted a loss of Rs90mn. In all a bad quarter, we downgrade our recommendation to HOLD.
Real estate boosts revenue during quarter
Technical analyst Anu Jain has maintained 'buy' rating on Patel Engineering Limited stock with a target of Rs 206.
The analyst said that the stock can be purchased with a stop loss of Rs 185.
The stock of the company, on April 05, closed at Rs 190.90 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 500 and a low of Rs 132.50 on BSE.
Current EPS & P/E ratio stood at 16.34 and 11.73 respectively.
Technical analyst Anil Singhvi has maintained 'buy' rating on Brandhouse Retails Limited stock with an intraday target of Rs 26.
According to analyst, the stock of the company can be bought with a stop loss of Rs 23.50.
The shares of the company, on March 22, closed at Rs 23.90 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 59.40 and a low of Rs 21 on BSE.
Brandhouse Retails has registered a marginal growth in its standalone net profit for the three month period ended December 2010.
During the period under review, the company's profit grew by 7.32% to Rs 75.51 million as compared to Rs 70.36 million during the corresponding period last year.
Weather plays spoilsport; order inflow remains subdued Patel Engg. reported dismal results, multiple factors effected revenues a) flash floods effected two of its hydro projects which lead to revenue loss of Rs600mn & heavy snowfall in US also effected its US operation. b) Cancellation of Loharinagpala hydro electric project (4x150 MW) from NTPC c) Delay in execution of Pranahita Chevella irrigation project.
Patel Engineering (PEL) Q2FY11 results surprised us with a higher than topline number at Rs7.7bn against Rs6.4bn expected, Rs0.5bn explained by the real estate sales booking and rest from better performance in irrigation segment and US subsidiary. Due to lower hydro sales mix margins where lower by 352bps on a YoY basis at 15.2%. Still PAT was higher by 7% on a YoY basis at Rs436mn. We are disappointed with the core business development, due to no traction in order booking & await H2 development.
Patel Engineering Ltd, a civil infrastructure construction company, plans to enter into the realty business and build commercial and residential property, IT parks and SEZs over the next three-years.
The latest move was a part of company's strategy to unlock the value of its 1,100 acre huge land-bank. The real estate business will be run by company's wholly-owned subsidiary, Patel Realty.
Patel Engineering's present core operations are in the areas of building hydro-power plants, irrigation dams, urban infrastructure and transportation.
Stock market analyst Hitendra Vasudeo of stockmechanics.com maintained ‘Buy’ rating on Patel Engineering to achieve a target of Rs 484.30 in the coming days.
According to Mr. Vasudeo, interested traders can buy the stock around Rs 453.60-Rs 434.70 with a strict stop loss of Rs 422.
Mr. Vasudeo also said that if the stock market remains on the positive track, the stock will hit another target of above Rs 530.
Patel Engineering, a leading infrastructure construction firm has clocked a decent 25.23% jump in its net profit which stood at Rs 63.22 crore in the fourth quarter ended March 31, 2009.
In a filing to the Bombay Stock Exchange (BSE), the company said that it has recorded a net profit of Rs 50.48 crore in the same period ended March 2008.
During the reporting quarter, net sales of the company surged to Rs 964.99 crore for the from Rs 726.77 crore in the same period previous fiscal.