Rs 16,396 crore Order Book & Penny Stock Under Rs 50: Engineering Company Declared L1 Bidder for Rs 1,318.89 Crore Urban Infrastructure Project and Rs 718 Crore Hydropower Project
Over the past year, the stock has delivered a return of -31.1 per cent, while its 3-year return is 64.87 per cent.
Patel Engineering Limited has been declared the lowest bidder for a significant urban infrastructure project valued at Rs 1,318.89 crore, awarded by the City & Industrial Development Corporation of Maharashtra Limited (CIDCO).
The project involves the construction of the Kondhane Dam and its allied works using Roller Compacted Concrete Technology, with a completion timeline of 42 months. Located in Maharashtra's Raigad district, the project encompasses civil works for the dam, hydro-mechanical and electrical works, including the installation of radial gates and electrification.
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Patel Engineering, a 76-year-old company, has a robust presence in hydropower, tunneling, and irrigation segments, with a track record of executing over 85 dams and 40 hydroelectric projects. This contract further strengthens its portfolio in the infrastructure sector.
Along with this, Patel Engineering Limited has been declared the lowest bidder (L1) for a significant hydropower project. The project, awarded by the North Eastern Electric Power Corporation Limited (NEEPCO), is valued at Rs. 718 crore, which includes tax. This was announced on April 25, 2025, according to a press release by Patel Engineering Ltd.
The contract is for the 240 MW HEO Hydro Electric Project located in Arunachal Pradesh. The project is expected to produce 1,000 million units (MU) of energy annually. It aims to enhance the power supply in the state and contribute to the national grid's stability. The project is slated to be completed over a period of 44 months.
The project will be located in the Shi Yomi district of Arunachal Pradesh.
Patel Engineering Ltd is a prominent player in the civil engineering construction sector, specializing in hydropower, tunneling, and irrigation. The company has completed over 250 projects, including significant works like the Sela Pass road tunnel and Kiru Hydroelectric project. Its revenue mix for Q3 FY25 shows a shift with hydro contributing 43 per cent, roads 25 per cent, irrigation 21 per cent, and tunneling 9 per cent. The company is executing 49 ongoing projects across 15 states and has an international presence in Nepal, with a total project value of Rs 16,396 crore.
Patel Engineering employs advanced technologies such as roller compacted concrete and micro tunneling. Its clientele includes major entities like NHPC and CIDCO. The order book as of 9M FY25 stands at Rs 16,396 crore, with hydroelectric projects comprising 64 per cent of the mix. The company aims for a 10 per cent revenue growth in FY26.
As of April 24, 2025, Patel Engineering Limited is trading at Rs 44.35. The stock has a 52-week high of Rs 71.68 and a 52-week low of Rs 38.33. The company's market capitalization stands at Rs 3,745 crore. Over the past year, the stock has delivered a return of -31.1 per cent, while its 3-year return is 64.87 per cent. The Price-Earnings (PE) ratio is 10.75.
Order book: As of February 2025, the order book stands at Rs 16,396 crores, with 64 per cent from hydropower, 21 per cent from irrigation, and 10 per cent from tunneling.
An ace investor, Vijay Kedia sold 1,20,00,000 shares or 1.42 per cent stake in the company in September 2024. As of September 2024, 88.7 per cent of promoters’ stake is pledged. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.