PATELS AIRTEMP
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2242
Printed Date: 16/Apr/2025 at 12:21pm
Topic: PATELS AIRTEMP
Posted By: hit2710
Subject: PATELS AIRTEMP
Date Posted: 17/Jul/2009 at 1:27pm
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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 ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Replies:
Posted By: smartcat
Date Posted: 17/Jul/2009 at 5:14pm
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PAT has grown its PAT consistently. Deserves a pat on its back.
From their website http://www.patelairtemp.com - 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
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Posted By: hit2710
Date Posted: 17/Jul/2009 at 8:30pm
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. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Nilesh Mahajan
Date Posted: 17/Jul/2009 at 8:46pm
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If one goes to Moneycontrol messageboard for this company, it is full of purchase notices by one single member Therm Flow Engineers for quite some time. Patels Airtemp India Ltd has informed BSE that the following shares has been purchased through Market. - Name of Purchaser: Therm Flow Engineers Pvt. Ltd - No of Shares Purchased: 500 It is full of such notices for past quite some months. Will be interesting to know who are these guys and what is their intention to buy Patels. |
Posted By: hit2710
Date Posted: 17/Jul/2009 at 8:49pm
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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. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Nilesh Mahajan
Date Posted: 17/Jul/2009 at 8:58pm
Oh I missed that...!  |
Posted By: hit2710
Date Posted: 29/Jul/2009 at 10:14am
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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. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: suru27
Date Posted: 30/Jul/2009 at 4:11am
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Hello HIT2710,
What a co-incidence, even i got hold of this company while scanning NSE stocks and found its financials interesting.I am learning from senior people like you.
I found two more such comapnies which suits basant's sir's checkpoints from a rough overview on their financials.These 2 companies have not been discussed here..
Please give some insight on them,I think they are interesting scripts from multibagger point of view..at least very good returns
1) Navbharat ventures
2)International combustion
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Posted By: suru27
Date Posted: 30/Jul/2009 at 4:14am
| By the way Mr HIT2710,may i know you good name if you dont mind..? |
Posted By: hit2710
Date Posted: 30/Jul/2009 at 10:10am
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Hi
I am Hitesh Patel and I am a dermatologist. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: amitdip
Date Posted: 11/Aug/2009 at 5:43am
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Hi Hitesh,
You have hit the right spot. I own this one. A stock such as this is once in a decade opportunity. It the future Thermax/Voltas like. With P/E expansion of 5 (from current 3 to 15) and EPS expansion of 5 ( likely to happen in next 5-6 years ) you have a 25 bagger at hand. I can guarantee that HDFC, HDFC Bank, L & T, BHEL et al will not be 25 baggers even 10 years from now. Regards |
Posted By: kumardiwesh
Date Posted: 12/Aug/2009 at 12:56pm
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Any idea about the management of this company?
The most important issue regarding these unknown names is the management. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: hit2710
Date Posted: 12/Aug/2009 at 4:35pm
AS FAR AS I KNOW IT IS GOOD MANAGEMENT. I GET MY DIVIDENDS ON TIME AND PROMOTERS HAVE BEEN BUYING INTO THE COMPANY FROM THE OPEN MARKET. THE COMPANY IS SPENDING MONEY TO THE TUNE OF 4=5 CRORES SINCE TWO YEARS FOR MODERNISATION AND IMPORT OF NEW MACHINERY. NO HOCUS POCUS DETECTED TILL DATE FROM THEIR BEHAVIOUR ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: EquityInv
Date Posted: 14/Aug/2009 at 6:25am
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http://indianstockmarketpicks.blogspot.com/search/label/Patels%20Airtemp - Buy recommendation on the stock with a revised price target of Rs 94, valuing the company at 6x FY2010E earnings," says Sharekhan's research report.
------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: hit2710
Date Posted: 16/Aug/2009 at 7:56pm
Hi, Looking at the way the management spends on importing new machines and modernisation, I tend to agree with you although I wouldn't bet on 25 bags being delivered. If it is it would be a pleasant surprise. I find the foll. merits Cheap stock with good growth Reasonable dividend yield cushioning downside Promoters increasing their holding Nil or negligible mf or fii holding. My view is that at current levels of 50-55 it is a bargain buy if you believe the story. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: EquityInv
Date Posted: 16/Aug/2009 at 3:35am
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Hit, first of all thanks for bringing this small wonder to our attention. PAT seems like "Chotta Voltas". PAT had great hindsight record of past six years with average net profit CAGR of 75% and EPS growth at almost same rate of 75%. Even in this recesssion, PAT has FY09 RoCE excellent of around 48% and RoE of 33%. PAT served many prestigious clients. Moreover, they are based in Gujarat and hence will benefit from this growth engine of India. Do you have idea of their existing order book? what kind of EPS can we expect for FY10E? ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: hit2710
Date Posted: 16/Aug/2009 at 10:04am
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The eps expected for fy 10 is conservatively around 15-16 and the order book at end of q1 fy10 was around 48 crore. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: kumardiwesh
Date Posted: 17/Aug/2009 at 6:42pm
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The company's tax rate is around 34%.
So earnings are definitely real. There has been no equity dilution for the last 6 years, which is very impressive. Debt/equity has been coming down. So interest expense will be lowered even further. Can anyone point out the interest expense for FY09? ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: hit2710
Date Posted: 17/Aug/2009 at 7:01pm
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In consolidated results interest cost for fy09 was 108.86 lakhs versus 127.2 lakhs for fy08 ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: EquityInv
Date Posted: 17/Aug/2009 at 2:50am
Thanks hit.. That's almost stable EPS w.r.t FY09 [Rs.14]. In Q1 FY10, even sales decreased by 30%, their NP is almost stable mainly because of decrease in interest cost. Did they improved their debt:equity ratio? Any idea of debt as on March'09 [can't find it anywhere].. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: hit2710
Date Posted: 17/Aug/2009 at 8:43am
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As far as I can make out the time for almost 50 % growth in net profits is not now. I believe the company will increase profits by around 10-20 percent for next two years, but the stock is available at valuations of around 3 and little debt.
Because the lower growth is factored into the stock price, any upside surprise will push up the price. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: EquityInv
Date Posted: 19/Aug/2009 at 8:06am
Yeah, FY10 seems okay for patel airtemp. But 10-20% growth should be good enough. Looking at their size, it's good to see that atleast they kept growing in this recession also [FY09].. But they should maiintain their march ahead in future depending on recovery in Indian infra's. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: hit2710
Date Posted: 20/Aug/2009 at 1:29pm
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Their performance in fy09 during difficult times gave me a lot of confidence in the company. And most of the times promoters are soaking up stock from market through their arm thermflow engineers. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: subu76
Date Posted: 20/Aug/2009 at 2:00am
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Hit Bhai, where do you get this data from yaar?
I am unable to see anything related in the bseindia.com insider trading page.
Also, any idea how i can see all the insider trades over the last one month or so.
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Posted By: EquityInv
Date Posted: 20/Aug/2009 at 6:15am
Subu.. You will get info http://www.bseindia.com/qresann/news.asp?newsid=%7BCC760E67-8F58-467B-9BE9-6C3FC8D35B48%7D¶m1=1 - here under announcement secion on bseindia.. You can go through all annoucement.. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: EquityInv
Date Posted: 20/Aug/2009 at 6:32am
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Hitbhai, I am finding this little wonder more interesting because of following pros.. 1) EPS growth of 62% CAGR from FY06 to FY09. Net Profit also grew at same rate as there's NO equity dilution [Great plus]. 2) RoCE is 48% in FY09.. [Avg RoE = 37% of last 4 years]. Less capex business model. 3) EBITDA increased from 15.79% [as of NR] in FY06 to 19.74% in FY09. 4) NPM increased from 3% in FY06 to 10.4% in FY09. 5) Good Dividend yield of 3.5% with market cap of 26 Crores only. 6) They are in likes of Voltas and Bluestar [at micro level]. 7) Positive cash flow from 5 years.. I cannot able to find any negatives [except slowdown in little business now which is in all secotrs in recession now].. Hitbhai, can you pls share AGR of 2007,2008 and 2009 if u have? [can't find on their site]. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: basant
Date Posted: 20/Aug/2009 at 6:48am
I missed this but one some smart analyst friend was/is bullish on NavBharat Ventures. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: EquityInv
Date Posted: 20/Aug/2009 at 8:10am
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Basantjee, Any comments on this little wonder Patels Aitemp ? ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: hit2710
Date Posted: 20/Aug/2009 at 10:11am
When you see the announcement of any company, click on the archives and there they are supposed to make disclosures regarding the buying or selling of shares by insiders or bulk trades. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: subu76
Date Posted: 20/Aug/2009 at 10:17am
| Got it....thanks hit and equityinv. |
Posted By: hit2710
Date Posted: 21/Aug/2009 at 10:31pm
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I am loading up on this stock. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: amitdip
Date Posted: 01/Oct/2009 at 7:15am
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From 09 Annual Report
"Thus, inspite of the general slow down and global recessionary trend, your directors are confident of repeating similar growth in line with the past trend for the fiscal year 2009-10." |
Posted By: hit2710
Date Posted: 02/Oct/2009 at 6:40pm
I would be happy even if company were to grow its earnings by 15-20% for next 2 years. More than that would be a pleasant surprise. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: amitdip
Date Posted: 02/Oct/2009 at 5:14am
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I am quite hopeful of it doing much better. Lets wait and watch. A five bagger in 5 years is what I am looking for. And if that rate can be maintained its 25 bags in 10 years either in same stock or by switching to other opportunities.
25 * 25 * 25 = 15625 times in 30 years. 10 Lacs = 1562 Crores in 30 years :-) |
Posted By: EquityInv
Date Posted: 02/Oct/2009 at 9:19am
I agree hitbhai.. I also expect same kind of growth. Management also set internal target of 75+ Crores of topline for FY10. Hence from that I expect max. 15% growth in bottomline/EPS. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: hit2710
Date Posted: 07/Oct/2009 at 6:59pm
Does the company put up its annual report on its website? I have the shares and received dividend but due to change of residence, the annual report seems to be lost. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: amitdip
Date Posted: 08/Oct/2009 at 3:18pm
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Actually I dont have physical copy of report as it goes to my brothers address, but downloaded an abridged copy online www.reportjunctions.com, full copy can be bought for 100 rs :-(
or 100 reports for 1500 Rs Open account for free and click this link http://www.reportjunction.com/Reports/Patels-Airtemp-India-Ltd-P0094.htm |
Posted By: shivkumar
Date Posted: 08/Oct/2009 at 4:51pm
| you will get the annual report free on the company website. or ask the company secretary to mail you. |
Posted By: hit2710
Date Posted: 08/Oct/2009 at 6:41pm
Thanks shivkumar. I tried the website but there seems to be no links. Now I will ask the company secretary and see what happens. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: amitdip
Date Posted: 13/Oct/2009 at 3:49pm
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Some gossip about PAT
http://economictimes.indiatimes.com/Market-News/Heard-on-the-Street/articleshow/5118083.cms |
Posted By: chimak10
Date Posted: 13/Oct/2009 at 3:58pm
| The HNI must be hit2710 |
Posted By: hit2710
Date Posted: 13/Oct/2009 at 6:49pm
I wish it was me 
The order book of 110 crores if true is very good news for the company. In the current market it is often difficult to find cheap growth stocks, but PAT is certainly one of them. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: EquityInv
Date Posted: 13/Oct/2009 at 6:56pm
Amit, Do you have idea if this 100-110 Crore order book is true? I think they had 49 crores order book as on 1st week of Sept. Did they got 50-60 crores order at one go in last one month? ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: amitdip
Date Posted: 13/Oct/2009 at 1:09am
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Hi there,
Yes, Hitesh was HNI, tax man watcheth ! Not sure about the order book position. It was 50 Crores around April 09. Its typical for PAT to get orders as big as 15 Crores like they did in 2008 from Essar, so wont be surprised. If you look at Blue Star its order book is also only 1 year or less of annual sales and it trading at 18 times trailing PE. Patels Airtemp also has around 1 year annual sales equivalent order book, at PE of 4. Unlike shipping, order to be executed 2-5 years in advance are not logged in HVAC business. I'll try to ring them up and Im also keen to know how is household AC business doing. Regards |
Posted By: hit2710
Date Posted: 13/Oct/2009 at 10:48am
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Hi amitdip,
I would be keen to hear about the feedback you receive from the company. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: amitdip
Date Posted: 14/Oct/2009 at 1:14pm
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Spoke with their marketing director, Naresh Patel. It was fairly long discussion about 10 minutes on the phone. He gave me the number of finance to discuss details. I stay in Wellington, New Zealand and co incidentally he is coming with his mates, 18 couples from his alma mater for a personal trip here and promised to carry a booklet about the company.
He promised 30% topline and bottomline growth this year. 90% of the business is from capex needs such as refineries etc. and only 10% business is from maintenance etc. All in all he was very bullish on continuing this momentum. Unfortunately we dont have five year visibility. Regards |
Posted By: basant
Date Posted: 14/Oct/2009 at 1:34pm
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Why are they running ads on their website? Also who are their main customers, any idea? http://www.patelsairtemp.com/result.php?Lfzxpset%3EIpufm%27f%3Ejo%3CJO%3C2%3A%3C2%3C2%3C2256573%3Ctuzmf2%602%3A%2Fdtt%3C3%3Cjoufsdptnpt%60bggjmjbuf%604%60e3s%60efsq%3Cedqbslfehppe%3Cedqbslfehppe%3C26878%3C26%3A73%3Cdmfbo%3C%27c%3EdHG1[Xy{ZXmzeHWudD6kc31%3E%27qpt%3E3%27tfbsdi%60uzqf%3Esfmbufe%27jqvb%60je%3E87dfgb852%3Af8%3Acd5b4c6g%3Abg2%3A582fd9%27enybsht%3E17pFOzb5[H2ZT7wPMKxqMjGekH%3A2JDsUkSTuOxQ4zJeYo3nScQ.5tQHv%3Azjf4lPu4QxB2s7ZK.gODfgcriClTU%3AEbK%3AzVCTlLR%3AZh3tLtdbJQFdBklM6G%3AI9eUvmgvol9Q2HP9eVhz6SJ9JYqRDNRbse%3ABJ7B%3A2Rfr{ON9zOTgbBjM%3Ayu32WYylbT%60Yw%3A4v{m%60ZlLgVoKsZkoFKKCvq8Uy8ewev%604b4CH%3AX4lRSoH96P5WI.Swl{w3KP96jb9YF4V%2F-ZU1{ ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: amitdip
Date Posted: 14/Oct/2009 at 1:58pm
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I will try to find out the answer to that one. But I belive they get new clients and they are Gujarat based not yet national level player. Also you have gone to incorrect website held by a cyber squatter, correct one is http://www.patelairtemp.com/ and not http://www.patelsairtemp.com/ Regards |
Posted By: catcall
Date Posted: 14/Oct/2009 at 2:20pm
Major customers include refineries, chemical and fertilizer units as well as petrochemical industry especially those located in gujarat and maharashtra for the heavy equipment business. My experience is that the quality of end products they provide is excellent, matched with timely delivery ------------- There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing! |
Posted By: amitdip
Date Posted: 14/Oct/2009 at 2:29pm
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This page has exhaustive list in HVAC category of clients
http://www.patelairtemp.com/hvsc_client.htm |
Posted By: Mohan
Date Posted: 14/Oct/2009 at 10:23pm
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Huge spike in volumes in this counter. This one is appearing on more and more peoples radars.
------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: EquityInv
Date Posted: 14/Oct/2009 at 11:05pm
Amitbhai, Thanks for sharing your discussion. 30% growth this year will be great positive surprise to me! In first week of Sept'09, I got chance to talk to Mr. N.G.Patel [CMD] and he gave expected FY10 sales target of minimum 10% growth [min. 75 crores]. Probably they may got more orders in last month or Mr.CMD opted to give conservative target [sign of good management?]. I guess Mr.Kamlesh Shah is the finance guy there. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: amitdip
Date Posted: 14/Oct/2009 at 1:06am
Hi EquityInv, its awesome that you spoke to CMD directly! I guess they got orders recently but I did not raise this point in my conversation as I dont like to spoil my relation being Qrtr focussed investor  He was bubbling with enthusiasm and himself came out with numbers. I only asked about business but conversation later become informal and he started telling about figures. Its remains to be seen whether this family run business can scale up in future as it did in the past and more importantly reward small shareholders.
Cheers PS: Name of Marketing director is Narendra Patel and not Naresh Patel, http://www.patelairtemp.com/group_of_companies.htm |
Posted By: EquityInv
Date Posted: 14/Oct/2009 at 6:02am
Actually I had to wait long time for call as initially he was in meeting and then went for factory visit. But once Narayanbhai was back, they called back to me and we had discussion. Since their clients are from sectors like fertilizers,oil and gas, refineries, power, chemicals, cement and textiles, once this sectors increase capex, PAT should do well. Also, they earn about 10-15% revenues from HVAC Projects. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: prabhakarkudva
Date Posted: 14/Oct/2009 at 9:24am
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In an old interview somebody from the management said they'd do 99cr sales in FY09.(http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=316638) They ended up with only 75 crore.So i dunno how much one could rely on management estimates. ------------- Take your chances and keep them in a box until a quieter time. |
Posted By: FutureBull
Date Posted: 14/Oct/2009 at 9:39am
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may be they were not aware of the recession ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: basant
Date Posted: 14/Oct/2009 at 10:16am
Correction Sir. India never had any recession what we had was a temporary slowdown of economic growth
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: FutureBull
Date Posted: 15/Oct/2009 at 1:20pm
yeah Basantji.. true.. India was never in recession.. but it seems whole world was not in recession  .. just a big correction in the long term bull market.. ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: amitdip
Date Posted: 15/Oct/2009 at 3:04pm
| Recession : A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters |
Posted By: amitdip
Date Posted: 15/Oct/2009 at 3:09pm
I guess in this business one cant predict with accuracy. One would need to be more vigilant if they are meeting targets time and again bang on target. Nevertheless they did 40% EPS growth, and another takeaway is that they are in no mood for equity dilution. |
Posted By: prabhakarkudva
Date Posted: 15/Oct/2009 at 3:11pm
Sir,what are you suggesting by that definition? ------------- Take your chances and keep them in a box until a quieter time. |
Posted By: amitdip
Date Posted: 15/Oct/2009 at 3:13pm
some countries of world were in recession but not india |
Posted By: FutureBull
Date Posted: 15/Oct/2009 at 3:51pm
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i wanted to say that the kind of vertical recovery we had .. soon we will forget that we had recession in bigger economies ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: hit2710
Date Posted: 30/Oct/2009 at 1:41pm
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PATELS AIRTEMP OCT 09 RESULTS
Sales 20.32 crores(q2Fy9 sales 21.96 crores) NP 2.44 crores (q2fy9 np 2.08 crores) Half yearly eps at 7.9 ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: prabhakarkudva
Date Posted: 10/Nov/2009 at 10:25pm
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Hit ji,
When this company has done well in terms of sales and EPS growth for the past 4-5 years why do you think is it selling at 4 times its earnings?Just wondering since this looks like a case of too good to be true ------------- Take your chances and keep them in a box until a quieter time. |
Posted By: hit2710
Date Posted: 10/Nov/2009 at 11:10pm
My guess is company is too small to be taken seriously by the market. If they keep up the sales and profit growth which in my view they are likely to do, then maybe 3-4 years down the line, the eps would be 25 and pe assigned would be 10. But it will need a roaring midcap bull market for this kind of scrip to take off. One has to be patient bcos the bull market I am talking about usually occurs in midcaps every 2-3 years. That is the time we get for accumulating such scrips. If this is too good to be true, then have a look at VST Tillers and its quarterly results and balance sheet. There is Mr market for you.------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: prabhakarkudva
Date Posted: 11/Nov/2009 at 8:21pm
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Hit ji,
Great analysis as usual.I had a few questions about this business: 1)Who are the competitors for Patel's Airtemp?Is there any moat or competitive advantage that they enjoy?Do they make something that is critical and no one else makes? 2)What plans do they have to expand pan India and not just primarily out of Gujarat?Did you get any info from the management regarding this? ------------- Take your chances and keep them in a box until a quieter time. |
Posted By: nav_1996
Date Posted: 11/Nov/2009 at 8:45pm
| One way to figure out about management when they are not public figures is to look at ROCE, Debt and dividend track record. |
Posted By: hit2710
Date Posted: 11/Nov/2009 at 9:13pm
Competitors are big players in HVAC segments. My guess would be BGR, GEI Inds, besides some others. I never had any interaction with management and hence no idea about second question. But the cng stations coming up should be good business for them. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 18/Nov/2009 at 1:42pm
I think it has miles to go before it can become a Blue Star
Technically it had broken out with good volumes out of some sort of inverted head and shoulders pattern and the reached 75 and presently it is testing the neckline at around 62-65 levels. The recent decline seems to be with lower volumes. Technical targets of breakout could be around 95-100 levels. Fundamentally, it is well placed with high ROCE in excess of 40, EPS of around 14-15 and good promoters who are also picking up stocks from the market regularly through their arm Therm Flow Engineers. A stock be it small cap or whatever with such high return ratios and pe of less than 5 according to me is a bargain at this price. I had bought the stock at around 50 levels and am continuing to add to my winning position. Lets see how it goes. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 18/Nov/2009 at 6:46pm
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The order book at end of Sep Qtr stood at 46 crores and company has bagged new orders worth 18.3 crores during the quarter. Order book at end of June qtr was 48 crores.
Projections for FY 10 full year are sales of 80 crores (H1 sales done 35.6 crores) and Net Profits of around 8 crores(H1 net profits at 4 crores) which on an equity of 5.07 crores should translate into eps of around 15.5. So based on conservative estimates, the stock quotes at a pe of around 4.2. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: FutureBull
Date Posted: 18/Nov/2009 at 9:04pm
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how does growth projection look like over next 2-3 yrs? ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: hit2710
Date Posted: 18/Nov/2009 at 9:50pm
Sales projection for FY 11 92 crores Net Profits projected for FY 11 9 crores with projected eps at around 18. These are according to sharekhan people who follow the stock. But I believe the company will easily surpass these projections because I believe sales and profitability will be much higher and since ROE is higher they won't need to resort to debt or equity dilution. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: FutureBull
Date Posted: 18/Nov/2009 at 10:55pm
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i checked the holding pattern for last 3 yrs and found very interesting thing.. Promoters lightened their holdings during manic times of 07 end & 08 start and now they are buying back when valuations are low.. smart thing to do but not the ideal situation ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: basant
Date Posted: 18/Nov/2009 at 6:26am
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That means that these promoters are also good punters!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: hit2710
Date Posted: 18/Nov/2009 at 9:26am
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Thanks future bull.
Here is the details of their holdings since March 05. March 05 39.8 March 06 38.46 March 07 38.22 March 08 34.18 Sep 08 35.92 March 09 36.82 Sep 09 37.21 I dont know if this is statistically significant or not. To me a change of around 4 % over 3-4 years does not matter as long as the company has good growth and pays dividend regularly, which they do. If bigger picture is good, I ignore the smaller things because too much analysis leads to paralysis. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: FutureBull
Date Posted: 18/Nov/2009 at 9:45am
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i agree hitji..just that i wanted to share this finding..now one thing is sure that promoters look smart and know how to play market..hope they would use all their smartness into making this business bigger and bigger in times to come ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: Khan
Date Posted: 19/Nov/2009 at 5:01pm
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In this case the promoter sales and purchases could be taken as a signal regarding the stock being over or under valued. ------------- If you do what you've always done, you'll get what you've always gotten |
Posted By: FutureBull
Date Posted: 19/Nov/2009 at 5:08pm
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i think that would be signal about the whole market instead ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: hit2710
Date Posted: 24/Dec/2009 at 1:42pm
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Announcement by the company on bseindia.com
Patels Airtemp India Ltd has informed BSE that the Company is in receipt of the order of HVAC and chiller supply works for supply, Installation, Testing and Commissioning at Hospital Building for M/s Sterling Addlife India Ltd, S.H: HVAC Works excluding Supply and Installation of Chillers at Bhavnagar, Gujarat of worth of Rs. 2,86,00,000/- and the Order works are in progress since the receipt of the said order ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 29/Dec/2009 at 6:02pm
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Another order received from Nakoda textiles.announcement on 29 dec 09.
Patels Airtemp India Ltd has informed BSE that the Company have received an order of worth Rs. 22.2 million from M/s Nakoda Textile Industries Ltd, Mumbai for air conditioning of POY Project. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: balloon
Date Posted: 29/Dec/2009 at 6:16pm
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sorry to have intruded here as well, hit :) i think one should discount the orders in the air conditioning division, the company does not make too much money there. i think the heat exchangers are the key money spinners. we need to assess whether it can go from less than 100 crore turnover to over 200 crore turnover over the next 2-3 yrs...only then will this stock become a true multibagger, one that will not only have the benefit of rising earnings but also of P/E re-rating. ------------- "The only way to win is work, work, work and hope to have a few insights" - Charlie Munger |
Posted By: shadows
Date Posted: 29/Dec/2009 at 6:22pm
 hitesh patel bhai can i go for patels airtemp now.........how much upside it may go I forgot this stock once it was in my radar ..... i was not taking the markets seriously and paying the price now |
Posted By: shivkumar
Date Posted: 29/Dec/2009 at 6:22pm
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what are the margins for the company's air-conditioning business? |
Posted By: hit2710
Date Posted: 29/Dec/2009 at 6:39pm
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Order announcements galore:
Patels Airtemp India Ltd has informed BSE that the Company have received prestigious order of Rs. 32 million from M/s Korting Engineering Pvt Ltd, Chennai for supply of Heat Exchangers for fertilizer project. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: hit2710
Date Posted: 29/Dec/2009 at 6:51pm
Targets of 90-95 look likely based on fundamentals and even technicals show some sort of breakout from inverted head and shoulders pattern. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: TCSer
Date Posted: 05/Jan/2010 at 12:56pm
| All recent clients of patel air temp seems to be respectable companies on good growth path. |
Posted By: studentoflife
Date Posted: 26/Feb/2010 at 12:07pm
Where can I find the annual report of the company?
|
Posted By: hit2710
Date Posted: 01/Mar/2010 at 10:33pm
No idea about that one. The company's website is great to look at but the annual report is not available on its website. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: master
Date Posted: 01/Mar/2010 at 11:20pm
| I don't track this company. But you may find the Annual Report http://www.reportjunction.com/Reports/Patels-Airtemp-India-Ltd-P0094.htm - |
Posted By: CHINKI
Date Posted: 10/Mar/2010 at 9:28pm
------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 10/Mar/2010 at 9:33pm
Most of their products are also fabricated by many other Indian companies.
------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: EquityInv
Date Posted: 10/Mar/2010 at 2:22am
Yeah, their 3rd quarter was not as good as expected.. Looking at their order book, they seems to achieve last year sales number.. Currently I personally prefer Mazda over Patel in the same sector small cap. ------------- One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do – James Rogers |
Posted By: balloon
Date Posted: 10/Mar/2010 at 9:03am
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Patels should be able to grow @ 20% plus in FY11....I think the capex cycle has turned corner...soon we will have this Company getting orders at a faster clip. There product air cooled condenser is the one that will most likely drive growth, going forward.
------------- "The only way to win is work, work, work and hope to have a few insights" - Charlie Munger |
Posted By: Jaishrikrishna
Date Posted: 22/May/2010 at 11:30pm
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Patels Airtemp India net profit rises 29.95% in the March 2010quarter
Sales rise 7.11% to Rs 21.24 crore Net profit of Patels Airtemp India rose 29.95% to Rs 2.56 crore in the quarter ended March 2010 as against Rs 1.97 crore during the previous quarter ended March 2009. Sales rose 7.11% to Rs 21.24 crore in the quarterended March 2010 as against Rs 19.83 crore during the previous quarter ended March 2009. For the audited full year, net profit rose 21.57% to Rs 8.68 crore in the year ended March 2010 as against Rs 7.14 crore during the previous year ended March 2009. Sales rose 5.52% to Rs 72.23 crore in the year ended March 2010 as against Rs 68.45 crore during the previous year ended March 2009. Particulars Quarter Ended Year Ended Mar.2010 Mar.2009 %Var.Mar.2010 Mar.2009%Var. Sales 21.24 19.83 7 72.23 68.45 6 OPM % 22.88 18.61 23 21.18 18.38 15 PBDT 4.24 3.32 28 14.14 11.62 22 PBT 3.99 3.16 26 13.26 10.96 21 NP 2.56 1.97 30 8.68 7.14 22 ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: hit2710
Date Posted: 23/May/2010 at 2:26pm
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Hi
The results are near the expected numbers with eps or around 17. With strong order wins in the last few months, the revenue visibility for next 3-4 quarters is now present which makes this stock a good buy on declines. Rerating though would only happen once it wins big ticket orders consistently. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: balloon
Date Posted: 23/May/2010 at 4:46pm
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while the performance at the net level was satisfactory...the company continues to disappoint at the sales front. I think it needs to get going on sales front....btwn it is once again witnessing weird volumes and bulk deals. I just dont understand what happens to this stock every once in a while.... ------------- "The only way to win is work, work, work and hope to have a few insights" - Charlie Munger |
Posted By: hit2710
Date Posted: 24/May/2010 at 2:45pm
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I have been observing the movement of Patels Airtemp since a long time and have found that once it goes up above 100, a lot of frenzy seems to build up into the stock, with volumes rising very high, price fluctuating wildly. Seems like operator play.
After the results were out on saturday, which as we discussed earlier were on expected lines, with eps of around 17, the stock is now in a downward spiral and I have calls from a couple of friends in which they have mentioned some advice/recommendation to buy the stock with a 1 year time frame with a target price of 200. While this target may be achieved (or not) one need not get caught in the frenzy of the stock. My best experience with this stock is to sell in the riot and allow it to settle, and when it consolidates with low volumes, gradually accumulate it. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Stockboy
Date Posted: 24/May/2010 at 11:22am
| Does someone know the current order book? |
Posted By: hit2710
Date Posted: 24/May/2010 at 11:26am
Dont know the exact order book but it recently won an order of 16 crore Rs which for Patels is a big ticket order. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |