Power & Instrumental (Gujarat) Limited engages in electrical contract work business and deals in electrical equipment in India. The company provides contracting based, industrial electrical, and power backup and standby services; and services for electrical and commercial electrical contractors. It also offers design, installation, maintenance, and repair services for energy efficient power and distribution transformers, generators, compressors, load banks, and others. Power & Instrumental (Gujarat) Limited was founded in 1975 and is based in Ahmedabad, India.

India

Power & Instrumental (Gujarat) Limited

Industrials

The company pays dividends irregularly. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

PIGL.NS reported revenue of INR 1 530mn in the last 12 months, up 44% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 135% from FY23 to INR 8.26.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 37ppts over six months and grown 11ppts faster in the past month. At the same time, the stock's performance relative to its the peers from the same country and sector is different. It underperformed these peers by 24ppts over six months and grew 5ppts slower in the past month. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 11.9% in the last 12 months, up from 9.9% in FY23. 

Historically, PIGL.NS has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 7.6%, a growth from 5.4% in FY23. 

Power & Instrumental (Gujarat) Limited reported a return on equity (RoE) of 15.7% in the last 12 months, up from 12.3% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 8.9% in the last 12 months, an increase from 5.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 14.6%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.4 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

PIGL.NS has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, poor working capital management.

In highly turbulent market conditions, PIGL.NS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, PIGL.NS is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to mild. 

Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, overpriced on P/FCF. 

Power & Instrumental (Gujarat) Limited

₹ 139.64

3

Power & Instrumental (Gujarat) Limited

₹ 139.64

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 139.64

About

About

About

About