Wednesday, 2 January 2019

POWERFUL TECHNOLOGIES LIMITED – “QUALITY THAT WILL AMAZE YOU”!



INCORPORATED YEAR: Feb, 2015

OFFICE & PLANT LOCATION: Powerful Technologies Limited has its office and manufacturing units located at Nodia, India.

CORE BUSINESS: Powerful Technologies Limited is into consumer electronic business, dealing in manufacturing of LED TV, LED Monitors, Power Banks, Chargers and Micro USB Cables.

PRODUCTS AND BRANDS NAME: Powerful Technologies Limited has its own brand “Lappymaster” & “Powereye” offering basket of products of consumer electronics and IT products. It is an authorized manufacturer and distributor of “Kotak Power Bank” and also “Polaroid LED TVs and LED Monitors”.


PROMOTERS & MANAGEMENT: Powerful Technologies Limited is promoted by “Mr. Aditya Gupta”, “Mrs. Karuna Chhabra” & Mr. Nitin Chhabra”.


LISTING STATUS: Powerful Technologies Limited got listed on NSE- SME Segment (i.e NSE EMERGE) on 28th Aug, 2018 (Symbol- Powerful). Issue price of the share in IPO was at Rs. 51 per share & lot size of 2000 shares. The company is to utilize its IPO fund for meeting its working capital requirements. 


FINANCIAL HIGHLIGHTS: (All Fig. in Crs.)
PARTICULARS
TOTAL INCOME
44.95
62.62
PAT
2.52
4.50
EPS
2.51
24.45
EQUITY PAID UP
10.02*
1.84*
FACE VALUE
10
10
BOOK VALUE
26.93
68.44
-Equity paid up capital has increased in March 2018 due to bonus allocation in Jan, 2018 in ratio of 6:1 and conversion of compulsory convertible preference shares. Thus equity increased from Rs. 21 Lacs to Rs. 1.84 Crs.

-Post IPO equity paid up capital stood at Rs. 10.02 Crs due to bonus issue in ratio of 3:1 in May, 2018 & issue of new 2656000 equity shares in IPO at Rs.51 per share.


VALUATION & CONCLUSION:
-Powerful Technologies Limited is into business of consumer electronics and has no such comparable listed company in Indian Market as per the DRHP filled.

-Total Income has increased by 58% from 2016 to 2018 on CAGR basis & PAT stands at 7% of Total Income in 2018. Based on recent 6months data (H1 FY2019)filled by the company there is almost 82% hike in Total Income compared to previous quarter (H1 FY2018) along with PAT margin maintained at 6-5% of Total Income. Thus the company is growing progressively in topline maintaining its PAT margin in a competitive market which is commendable.

-Based on news reported on 18th Dec, 2018 Government is going to slash down the GST rates for power banks and computer screen which is one of the prime agenda for discussion in 31st GST Council meeting to be held on 22nd Dec, 2018. The government is planning to slash down GST on 20 inch and greater computer screens from current 28% to 18%, Power Bank shall be taxed equal to normal batteries to 18% and GST on UPS devices will also be reduced to 18%. This shall be a great breakthrough for the company improving its PAT margins in company years.

-Powerful Technologies Limited allocated the shares in IPO at PE (Post Issue) – 11.35x & P/BV (Post Issue) - 1.96x. So based on this if one consider same parameters supported by slashing down of GST rates one can project the price to be double in long run time frame.

Thus based on all the above factors we recommend “BUY- Powerful Technologies Limited” from long run perspective.


For buying and selling any unquoted / unlisted / delisted or suspended shares in physical or demat you can reach us at Contact No.91+ 09215709100 or Email us on mittalmanish2003@gmail.com

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