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PTCIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | PTCIL | Market Cap | 27,084 Cr. | Current Price | 18,045 ₹ | High / Low | 19,440 ₹ |
| Stock P/E | 685 | Book Value | 899 ₹ | Dividend Yield | 0.00 % | ROCE | 5.26 % |
| ROE | 3.59 % | Face Value | 10.0 ₹ | DMA 50 | 17,768 ₹ | DMA 200 | 16,023 ₹ |
| Chg in FII Hold | 0.45 % | Chg in DII Hold | -0.06 % | PAT Qtr | 8.16 Cr. | PAT Prev Qtr | 8.18 Cr. |
| RSI | 52.0 | MACD | 0.60 | Volume | 13,124 | Avg Vol 1Wk | 16,580 |
| Low price | 9,756 ₹ | High price | 19,440 ₹ | PEG Ratio | 14.1 | Debt to equity | 0.03 |
| 52w Index | 85.6 % | Qtr Profit Var | -9.93 % | EPS | 26.4 ₹ | Industry PE | 24.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹8.16 Cr. vs. ₹8.18 Cr. previously, showing stagnation. EPS at ₹26.4 is modest relative to price.
- Return Metrics: ROE at 3.59% and ROCE at 5.26% highlight weak capital efficiency.
- Debt Position: Debt-to-equity ratio at 0.03 indicates negligible leverage, ensuring balance sheet stability.
- Cash Flow: No dividend yield (0%), limiting shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 685, extremely high compared to industry average of 24.2, indicating severe overvaluation.
- P/B Ratio: Current Price ₹18,045 vs. Book Value ₹899 → ~20.1, trading at a steep premium.
- PEG Ratio: 14.1, very high, reflecting poor growth-adjusted valuation.
- Intrinsic Value: Current valuation appears speculative; intrinsic value likely far below market price given weak returns.
🏭 Business Model & Competitive Advantage
- PTC India Ltd. operates in power trading and energy solutions, a sector tied to electricity demand and regulatory frameworks.
- Competitive advantage lies in established presence in power trading, but profitability remains limited.
- High valuation multiples suggest speculative interest rather than strong fundamentals.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Risk-tolerant investors may consider accumulation near ₹9,800–11,000, closer to 52-week low.
- Long-Term Holding: Suitable only for speculative investors betting on energy sector reforms; fundamentals do not support strong long-term holding at current valuation.
Positive
- Debt-to-equity ratio at 0.03 ensures negligible leverage risk.
- FII holdings increased (+0.45%), showing some foreign investor confidence.
- Stock trading above DMA 50 (₹17,768) and DMA 200 (₹16,023), indicating technical strength.
Limitation
- Extremely high P/E ratio (685) compared to industry average (24.2).
- Low ROE (3.59%) and ROCE (5.26%).
- No dividend yield, limiting investor returns.
- Quarterly PAT stagnated with marginal decline (-9.93%).
Company Negative News
- DII holdings reduced (-0.06%), showing lower domestic institutional confidence.
- Quarterly profit stagnation highlights weak growth momentum.
Company Positive News
- FII holdings increased (+0.45%).
- Stock trading above DMA levels, showing technical support.
Industry
- Power trading industry P/E at 24.2, far lower than PTCIL’s 685, highlighting overvaluation.
- Sector outlook supported by rising electricity demand and renewable integration, but company-specific fundamentals remain weak.
Conclusion
- PTC India Ltd. shows negligible leverage and some institutional support but suffers from weak profitability and extreme overvaluation.
- High multiples and low efficiency make it unattractive for conservative investors.
- Speculative entry near ₹9,800–11,000 may be considered, with cautious outlook until earnings improve.
I can also prepare a valuation comparison with other power sector companies to highlight how PTCIL stacks up in terms of P/E, ROE, and growth potential. Would you like me to create that?