Rs 15218 Crore Order Book: Penny Stock Under Rs 50 In JV Secures Rs 958.33 Crore Irrigation Project in Maharashtra
The stock is down 19.45 per cent year-to-date and has dropped 35.60 per cent over the past 12 months.
Patel Engineering Ltd (PEL), a Mid-Cap infrastructure company, has announced that it has secured a major irrigation project worth Rs 958.33 crore in a joint venture (JV) with another firm. The company’s share in this JV contract stands at Rs 191.67 crore. Awarded by the Maharashtra Krishna Valley Development Corporation, Pune, the project is focused on building a comprehensive Pipeline Distribution Network to enhance irrigation infrastructure in the Satara district of Maharashtra.
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The project entails the construction of a pipeline network for the Nira Deoghar Right Bank Main Canal from Km 87 to Km 135, including distributaries and minors branching off from Km 65 to Km 135. Located in Village Kalaj, Taluka Phaltan, the contract includes excavation, trench refilling, pipe laying, installation of valves and chambers, testing of the pipeline system, and a five-year operations and maintenance period post-completion. The project is expected to be completed within 36 months. PEL had earlier emerged as the lowest bidder (L1) and was informed of its selection on February 18, 2025.
Following the announcement, shares of Patel Engineering initially rose 0.19 per cent to Rs 41.97. However, by 9:40 AM IST, the stock was trading slightly lower at Rs 41.81, reflecting a marginal dip of 0.19 per cent from the previous close, indicating a failure to sustain early gains.
Commenting on the project, Ms. Kavita Shirvaikar, Managing Director of Patel Engineering Ltd, said the development represents a long-term investment in rural prosperity and agricultural resilience, underlining the company's commitment to strengthening India's irrigation infrastructure.
In terms of financial performance, the company’s Q4 FY25 revenue from operations grew 20 per cent year-on-year to Rs 1,611.86 crore from Rs 1,343.18 crore in Q4 FY24. However, profit after tax for the quarter declined sharply by 75.37 per cent to Rs 34.71 crore. For the full year FY25, revenues grew 12.09 per cent to Rs 5,093.36 crore, but annual profit fell 21.70 per cent to Rs 236.16 crore from Rs 301.60 crore in FY24.
Patel Engineering, established in 1949, has a strong track record in the hydropower, tunnelling, and irrigation sectors. Over its 76-year history, the company has completed more than 85 dams, 40 hydroelectric projects, and over 300 km of tunnelling work, primarily for public sector undertakings and state government clients.
On the stock market front, PEL has seen mixed performance. The stock is down 19.45 per cent year-to-date and has dropped 35.60 per cent over the past 12 months. However, over a three-year period, it has delivered returns of 86.47 per cent, which may attract Small-Cap investors looking for turnaround stories in infrastructure.
As of March 2025, the shareholding pattern shows that promoters hold 36.11 per cent of equity. FIIs increased their stake to 5.01 per cent, up from 4.74 per cent in the previous quarter, while DIIs raised their share to 4.70 per cent. The public remains the largest shareholder group at 49.80 per cent. Notably, ace investor Vijay Kedia held a 1.42 per cent stake in the company as of the June 2024 quarter, underlining investor interest in the stock’s long-term potential.
Disclaimer: The article is for informational purposes only and not investment advice.