Rs 15,218 Crore Order Book: Penny Stock Under Rs 50 In JV Bags Irrigation Project of Rs 958.33 Crore from Maharashtra Krishna Valley Development Corporation
As of March 31, 2024, the company’s order book stands at Rs 15,218 crore (Including L1 Orders).
On Friday, shares of Patel Engineering Ltd fell 0.17 per cent to Rs 41.86 per share with an intraday high of Rs 42.30 per share and an intraday low of Rs 41.42 per share from its previous closing of Rs 41.93 per share. The stock’s 52-week high is Rs 74.38 while its 52-week low of Rs 33.65. The company has a market cap of over Rs 3,500 crore.
Patel Engineering Limited (PEL) has secured a significant irrigation project in a joint venture with a total value of Rs 958.33 crore from the Maharashtra Krishna Valley Development Corporation. PEL's share in this contract is Rs 191.67 crore. The project, located in Village Kalaj, Taluka Phaltan, District Satara, Maharashtra, involves the construction of a pipeline distribution Network for the Nira Deoghar Right Bank Main Canal and its various off-taking channels. This includes extensive civil works such as excavation, refilling, pipe laying, and the installation of various valves and chambers, along with five years for operations, repairs, and maintenance post-completion. The project is expected to be completed within 36 months, further solidifying Patel Engineering's presence in large-scale infrastructure development.
Earlier, the company had secured a significant contract worth Rs. 711.29 crore from the North Eastern Electric Power Corporation Limited (NEEPCO) for the construction of the 240 MW HEO Hydropower Project. This EPC (Engineering, Procurement, and Construction) mode project is located in the Shi Yomi district of Arunachal Pradesh and is slated for completion within 44 months. PEL, having been declared the lowest bidder, will be responsible for all civil and associated infrastructure works, including the testing and commissioning of Hydro-mechanical Plant & Machinery, ensuring the successful operation of all generating units of the hydropower plant.
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About the Company
Patel Engineering Limited is a 76-year-old company established in the year 1949 and has evolved as a construction company specialising in the hydropower and irrigation segments. It is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works and have executed a variety of infrastructure projects in the technology-intensive areas like hydropower, irrigation and water supply, urban infrastructure and transportation segments especially in tunnels and underground works for hydroelectric and transportation projects primarily as civil contractors.
Results: According to Quarterly Results, net sales increased by 20 per cent to Rs 1,612 crore while net profit decreased by 73 per cent to Rs 38 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 12 per cent to Rs 5,093 crore while net profit decreased by 14 per cent to Rs 248 crore in FY25 over FY24. The company successfully brought down its gross debt from Rs 1,886 crore in FY24 to Rs 1,603 crore in FY25.
Order book: As of March 31, 2024, the company’s order book stands at Rs 15,218 crore (Including L1 Orders). Segment-wise order book includes hydroelectric (66.20 per cent), irrigation (22.96 per cent), tunnel (7.73 per cent, road (1.91 per cent) and other (1.20 per cent).
Disclaimer: The article is for informational purposes only and not investment advice.