Rs 16,396 crore Order Book & Penny Stock Under Rs 50: Company Secures Rs 711 Crore Hydropower Project in Arunachal Pradesh
On a year-to-date basis, the stock has declined by 19.38 per cent and is down 36.21 per cent over the past 12 months.
Patel Engineering Ltd has officially secured a major infrastructure order worth Rs 711.29 crore from the North Eastern Electric Power Corporation Limited (NEEPCO) for the construction of the 240 MW HEO Hydropower Project in the Shi Yomi district of Arunachal Pradesh. The contract was awarded through a Letter of Acceptance (LOA), following Patel Engineering’s earlier declaration as the Lowest Bidder (L1) on April 25, 2025. The project is scheduled to be completed over a 44-month period and includes civil works, infrastructure development, as well as testing and commissioning of Hydro-mechanical Plant & Machinery.
This development reinforces Patel Engineering’s strategic focus on hydropower infrastructure and its long-standing expertise in executing complex projects across India. Managing Director Ms. Kavita Shirvaikar emphasised the company's role in contributing to the growth of India’s renewable energy infrastructure, particularly in the underdeveloped North-East region. She also noted the company’s commitment to environmental responsibility and community engagement.
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Earlier in the trading session, shares of Patel Engineering Ltd surged 1.59 per cent to Rs 42.90 after the LOA announcement. However, by 11:10 AM IST, the stock retreated slightly to Rs 41.88, up just 0.83 per cent, unable to maintain early gains. On a year-to-date basis, the stock has declined by 19.38 per cent and is down 36.21 per cent over the past 12 months. However, over a three-year period, it has delivered returns of 89.63 per cent, underlining its performance in the small-cap infrastructure segment.
In the March 2025 quarter, the company’s shareholding pattern showed promoters owning 36.11 per cent of the equity. Foreign Institutional Investors (FIIs) increased their stake to 5.01 per cent, while Domestic Institutional Investors (DIIs) raised their holdings to 4.70 per cent. Public shareholders remained the largest group with 49.80 per cent ownership. Notably, renowned investor Vijay Kedia held a 1.42 per cent stake as of the June 2024 quarter.
Despite winning a sizable order, Patel Engineering’s Q4 FY25 performance showed mixed results. Revenue from operations rose 20 per cent year-on-year to Rs 1,611.86 crore, compared to Rs 1,343.18 crore in Q4 FY24. However, profit after tax fell sharply by 75.37 per cent to Rs 34.71 crore, down from Rs 140.94 crore in the same quarter of the previous year. For the full FY25, the company posted a 12.09 per cent increase in revenue to Rs 5,093.36 crore, while annual profit after tax declined by 21.70 per cent to Rs 236.16 crore.
Founded in 1949, Patel Engineering Ltd is a 76-year-old engineering and infrastructure company with a strong track record in the hydropower, tunnelling, and irrigation sectors. It has successfully completed over 85 dams, 40 hydroelectric projects, and more than 300 km of tunnelling works across domestic and international markets, mostly for government and public sector undertakings.
Disclaimer: The article is for informational purposes only and not investment advice.