Penny stock under Rs 50 & Rs 15,218 crore order book: Company approves Rs 200,00,00,000 fund raising via NCDs

As of March 31, 2024, the company’s order book stands at Rs 15,218 crore (Including L1 Orders).

On Thursday, shares of Patel Engineering Ltd changed nil per cent to Rs 40.80 per share with an intraday high of Rs 40.93 per share and an intraday low of Rs 40.52 per share from its previous closing of Rs 40.80 per share. The stock’s 52-week high is Rs 70 while its 52-week low of Rs 33.65. The company has a market cap of over Rs 3,400 crore.

The Board of Directors of Patel Engineering Limited (PEL) has approved the offer, issue, and allotment of Non-Convertible Debentures (NCDs) for up to Rs 200,00,00,000. These NCDs, which can be subordinated, senior secured, senior unsecured, unsecured, or market-linked, and may or may not be rated, will be issued in one or more tranches through a private placement during the current financial year.
Earlier, Patel Engineering Limited (PEL) was declared the lowest bidder (L1) for the construction of a Pipe Line Distribution Network for the Nira Deoghar Right Bank Main Canal and its associated distributaries and minors. Now, PEL, in a joint venture, has officially received the Letter of Award (LOA) for this irrigation project from the Maharashtra Krishna Valley Development Corporation, Pune, valued at Rs. 958.33 crore. PEL's share in this 36-month project, located in Kalaj, Maharashtra, is Rs 191.67 crore, and the scope of work includes the comprehensive construction of the pipeline network, along with five years for operations, repairs, and maintenance post-completion.

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.