PATELS AIRTEMP
BSE CODE 517417 (scrip traded only on bse)
Cmp 48-50
Patels Airtemp manufactures critical products like heat exchangers, pressure vessels, industrial fans and blowers, and other products that find use in sectors like oil and gas, refineries, power, fertilisers, chemicals, cement and textiles. The company is also into HVAC business, which currently contributes about 15% to the total revenues of the company.( where the company undertakes turnkey projects and manufactures HVAC equipment, which is also expected to benefit from the retail boom).
The company has two manufacturing units—one at Vadodara and another at Kalol in Mehasana.
FINANCIAL DETAILS
Current market cap 25 crores. Equity 5.07 crores Debt as on March 08 4.86 crores d/e ratio 0.2
Financial Results
Year                                March 04            Mar 05        Mar 06     Mar 07     Mar 08     Mar09
Sales                                  16.59                  31.08          33.95       47.06      61.76       68.4
Net Profit                             0.5                    1.12            1.38       2.54        5.22       7.1
ROCE                                                               16.8           18.9       29.6        46.3        48.8
RONW                                                              12.6          13.5        20.8       31.5        31.5                                                            
Fy 09 EPS 14.1 DIVIDEND Rs 1.8 per share ROCE 48.8   RONW 31.5
Current Order Book is 50 crores

FUTURE PROSPECTS:

THE COMPANY IS BETTING ON THE EXPANSION PROGRAMME OF IFFCO TO OBTAIN NEW ORDERS. SETTING UP OF ABOUT 300 NEW CNG STATIONS IN GUJARAT ALSO WILL PROVIDE ORDERS FOR THE COMPANY.
THE COMPANY HAS SPENT ABOUT 6 CRORES THIS YEAR ON ENHANCING CAPACITIES AND IMPORTING NEW MACHINERY. IT PLANS TO SPEND ANOTHER 4-5 CRORES FOR NEXT YEAR FOR ENHANCING MANUFACTURING CAPACITIES AND IMPORTING NEW MACHINERY.

PROMOTER HOLDING IS 37% PROMOTERS HAD PURCHASED SHARES FROM THE MARKET DURING FY 09 DURING MARKET CRASH. THEY STILL ARE PURCHASING FROM MARKET THROUGH THEIR ARM THERMFLOW ENGINEERS.

POSITIVES:

1.CONSISTENT GROWTH
2.VERY LOW DEBT
3.CONSISTENT DIVIDEND PAYMENT SINCE 3 YEARS
4.MARKET PRICE CLOSE TO BOOK VALUE
5.VERY GOOD GROWTH PROSPECTS IF ECONOMY GETS BACK ON TRACK
6.CHEAP VALUATIONS AND CONSISTENTLY GOOD RETURN RATIOS

NEGATIVES:

COMPANY IS A SMALL PLAYER AND HENCE RISKS ASSOCIATED WITH SMALL AND MICRO CAPS
POOR LIQUIDITY



Edited by hit2710 - 17/Jul/2009 at 1:36pm

Originally posted by smartcat PAT has grown its PAT consistently. Deserves a pat on its back.   From their website www.patelairtemp.com, it looks like they are manufacturing lots of stuff. Their product profile on their website looks more like it belongs to a billion dollar company

Thanks for directing me to their website. Yes, looks like a billion dollar company website. Hope it becomes a billion dollar company because i am nibbling at it in small doses after having followed it for around 3-4 years, Only problem is stock is in trade to trade and hence getting small quantities every day.

I am very impressed by the management which has kept debt levels low and return ratios high for such a small company and still managed to grow sales and profitability. It seems PAT is the mantra of PAT.

Hi Nileshji,

I have mentioned in the article that promoters are constantly buying from market through their arm thermflow engineers.i checked with shareholding pattern and thermflow has been listed as one of the promoters.

Q1 FY 10 RESULTS UPDATE.

SALES 15.31 CRORES (Q1 FY 09 13.23)
NET PROFIT 1.56 (1.33)
EPS FOR QUARTER 3.09

STEADY PROGRESS BY THE COMPANY.