This infrastructure stock engaged in executing infrastructure projects across tunneling, roads, hydropower, irrigation, and other sectors, in focus after securing projects worth Rs. 1090 crore in joint venture from Maharashtra Krishna Valley Development Corporation.
Stock Price Movement:
With a market capitalization of Rs. 3,630.82 crores, the shares of Patel Engineering Limited were currently trading at Rs. 42.90 per equity share, down nearly around 3.64 percent from its previous day’s close price of Rs. 44.52
What Happened:
Patel Engineering Limited, along with its joint venture partner, has been declared the lowest bidder (L1) for an irrigation project worth Rs. 1,090.45 crore by the Maharashtra Krishna Valley Development Corporation. Patel Engineering Limited’s share in this contract is Rs. 218.09 crore (20 percent of the project).
The project involves constructing a pipeline distribution network for the Nira Deoghar Right Bank Main Canal in Maharashtra, covering a distance of 48 kilometers, and it is expected to be completed in 36 months. Patel Engineering Limited’s work includes excavation, pipe laying, and installation of valves and chambers, along with 5-year operations, repairs, and maintenance period after project completion.
Order Book:
Patel Engineering Limited has experienced consistent growth in its order book, showing a CAGR of 8.55 percent from FY19 to FY25. The order book value has increased from Rs. 10,215 crore in FY19 to Rs. 16,396.4 crore in Q3 FY25, excluding one project, which is L1, an Rs. 240 crore project.
The order book is largely dominated by hydroelectric projects, which make up 63.60 percent, followed by irrigation at 20.98 percent, tunnels at 10.11 percent, road projects at 2.29 percent, and other segments at 3.02 percent as of December 2024.
Business Operation:
Patel Engineering Limited operates across 15 states and has built over 87 dams, more than 300 kilometers of tunnels, and over 1,200 kilometers of roads. The company’s projects have helped irrigate over 5.5 lakh acres of land, and they have completed hydro projects exceeding 15,000 MW capacity.
Client base:
Patel Engineering Limited has built strong connections with key clients in infrastructure and hydropower. Their notable clients include NHPC, CVPPPL, RVNL, NHAI, and CIDCO, along with state water resources departments from Himachal Pradesh and Madhya Pradesh, showcasing its wide industry reach.
Recent quarter results:
Patel Engineering Limited’s revenue has increased from Rs. 1,061 crore in Q3 FY24 to Rs. 1,206 crore in Q3 FY25, which has grown by 13.67 percent. The net profit has also grown by 18.84 percent from Rs. 69 crore in Q3 FY24 to Rs. 82 crore in Q3 FY25.
Written By – Nikhil Naik
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