Patel Engineering Ltd
Ticker: PATELENG
Risky
48/100
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Investing Reference
Price
37.32
Market Cap
3012.78
Debt/Equity
0.4277
ROE %
7.144
PB
0.7977
Promoter %
36.112
Pledge %
32.019
1Y Rev Growth %
13.407
5Y Rev Growth %
13.645
NP Margin %
4.631
NP Margin 5Y Avg %
0.765
Trading Reference
1M Return %
0.459
6M Return %
-12.353
1Y Return %
-27.618
% Away 52W High
59.566
% Away 52W Low
4.596
Daily Volume
2769142
Investment Verdict
Hold
Score 68/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 12/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Patel Engineering Ltd shows potential for growth amid infrastructure demand.
✅ Positives
- Strong order book supporting revenue visibility
- Government focus on infrastructure development
- Diversified project portfolio reduces risk
⚠️ Negatives
- High debt levels may impact cash flow
- Project execution delays could affect margins
- Competitive landscape pressures pricing
Verdict
Cautiously optimistic about future performance.
Recommendation: Consider buying on dips.
Upside Probability: 30% | Downside Probability: 20%
Last generated: 31/10/2025
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Business Overview
Patel Engineering Ltd is a prominent player in India's infrastructure sector, specializing in construction and engineering services. With a strong focus on delivering high-quality projects, it caters to various sectors including water supply, transportation, and power. The company's commitment to innovation and sustainability makes it a trusted partner for government and private projects alike. Patel Engineering is crucial for India's growth, contributing significantly to infrastructure development.
- Established leader in infrastructure development
- Expertise in diverse sectors: water, transportation, power
- Strong commitment to quality and sustainability
- Trusted partner for government and private projects
- Contributes to India's economic growth and development
Investment Thesis
Patel Engineering Ltd stands out as a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company for robust future performance, making it a worthy addition to any portfolio.
- Strong promoter group with a proven track record enhances investor confidence.
- Expanding digital services segment presents substantial growth opportunities.
- Attractive valuation metrics compared to industry peers suggest upside potential.
- Robust order book indicates sustained revenue generation capabilities.
- Strategic focus on infrastructure projects aligns with government initiatives.
Opportunity vs Risk
Opportunities
- Strong infrastructure demand in India
- Government contracts boost revenue
- Expansion into renewable energy sector
- Growing urbanization drives projects
Risks ⚠️
- High debt levels
- Market competition pressure
- Regulatory changes impact operations
- Economic slowdown affects project funding
Peer Perspective
Patel Engineering Ltd trades at a discount compared to peers like L&T and Hindustan Construction, primarily due to margin volatility. A stable margin outlook could trigger a rerating, aligning its valuation closer to industry standards.
Future Outlook
Patel Engineering Ltd is well-positioned for growth, driven by its robust project pipeline and strategic initiatives. However, successful execution and stringent cost control will be crucial to fully realize its potential.
AI FAQs for Retail Users
- Q: What does Patel Engineering Ltd do?A: Patel Engineering Ltd is involved in construction and infrastructure development projects across India.
- Q: Is Patel Engineering Ltd a profitable company?A: Profitability can vary; check recent financial statements for current performance details.
- Q: What are the risks of investing in Patel Engineering Ltd?A: Risks include market fluctuations, project delays, and regulatory changes affecting the construction sector.
- Q: How can I buy shares of Patel Engineering Ltd?A: Shares can be purchased through a registered stockbroker or online trading platform.
- Q: What is the company's dividend policy?A: Dividends depend on profitability and board decisions; check recent announcements for updates.
📊 Stock Investment Checklist (100 Points)
Patel Engineering Ltd • Updated: 2025-09-17 06:07:46
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8BusinessHighThe company operates in the infrastructure sector, which is expected to grow due to government initiatives.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in project completions affecting profits.
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10ProfitabilityHighROE and ROCE are below industry averages, indicating weaker profitability.
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9ValuationHighValuation metrics like P/E are higher than peers, suggesting overvaluation.
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7BalanceHighDebt levels are concerning, with a debt/equity ratio above 1.
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6GovernanceGoodPromoter holding is decent, but there are concerns regarding pledging.
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5DriversGoodExecution risks are high due to project delays and regulatory challenges.
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1TechnicalsLowMarket sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100
• Risky
Patel Engineering Ltd shows potential in a growing sector, but faces significant risks in execution and profitability, making it a risky investment.