Patel Engineering is a major infrastructure and construction services company in India, founded in 1949. They have a wide range of experience in various sectors of the infrastructure industry, including:
- Dams and tunnels: Patel Engineering has constructed some of the largest dams and tunnels in India, such as the Parbati H E P (800 MW) and the TBM tunnel project (6400 m).
- Hydroelectric projects: They have a strong presence in the hydropower sector, having built projects like the Tapovan Vishnugad Hydro Electric Power Project in the Himalayas.
- Irrigation projects: Patel Engineering has played a vital role in developing irrigation infrastructure across India, contributing to agricultural growth.
- Highways, roads, and bridges: They have constructed numerous highways, roads, and bridges across the country, including the four-lane Varanasi-Shaktinagar Road.
- Railways: Patel Engineering has expertise in railway construction, having worked on projects like the Dedicated Freight Corridor.
- Refineries and townships: They have diversified into other sectors like refineries and townships, showcasing their adaptability and range.
Patel Engineering Overview
| Area | Information |
|---|---|
| Company Name | Patel Engineering Ltd. (PEL) |
| Founded | 1949 |
| Headquarters | Mumbai, India |
| Industry | Infrastructure and Construction |
| Market Sectors | – Hydro-electric projects – Transportation projects (highways, roads, bridges, railways) – Water treatment projects – Real estate (buildings, townships, malls, structures) |
| Key Strengths | – Extensive experience (70+ years) – Multi-disciplinary expertise – Strong track record of successful projects – Commitment to quality and innovation – Adoption of cutting-edge technologies |
| Mission | To be the pioneer in the industry and a market-driven organization known for its commitment towards excellence, quality, performance and reliability. |
| Vision | To deliver comprehensive and effective solutions to clients through profound experience and technological prowess, while continuously creating opportunities and possibilities for employees, stake-holders and society. |
| Website | https://pateleng.com/ |
Patel Engineering Products
| Category | Products | Examples |
|---|---|---|
| Hydropower | – Turbines – Penstocks – Gates | – Francis turbines – Steel penstocks – Radial gates |
| Transportation | – Paving equipment – Tunnel boring machines – Bridge construction equipment | – Asphalt pavers – Tunnel boring machines (TBMs) – Bridge launching systems |
| Water Treatment | – Pumps – Filtration systems – Pipelines | – Centrifugal pumps – Reverse osmosis filtration systems – HDPE pipelines |
| Real Estate | – Formwork systems – Shoring equipment – Cranes | – Aluminum formwork – Hydraulic shoring systems – Mobile cranes |
Patel Engineering Awards and Recognition
| Year | Award/Recognition | Category | Bestowed by |
|---|---|---|---|
| 2022 | Featured in “The CEO Magazine” article on Transforming India’s Infrastructure | Leadership | The CEO Magazine |
| 2022 | Construction World Global Awards | Overall Performance | Construction World |
| 2021 | First Double Lake Tunnel Project Completion | Engineering Feat | India |
| 2020 | World Record Holder for Fastest Conventional Tunneling (T-2 Tunnel, Jammu & Kashmir) | Tunneling Excellence | International Achievement |
| 2019 | 10th Fastest Dam Concreting (Ghatghar Dam) | Dam Construction Efficiency | International Achievement |
| 2018 | National Award for Excellence in Civil Engineering Project – Irrigation & Drainage (Lower Kadana Lift Irrigation Scheme) | Irrigation Project Excellence | Government of India |
| 2017 | National Award for Excellence in Civil Engineering Project – Power (Srisailam Left Bank HEP Unit-2 Extension Project) | Hydropower Project Excellence | Government of India |
| 2016 | Outstanding Performance and Super Quality Construction Award | Overall Project Delivery | Indian Building Congress |
| 2014 | World Bank Certificate of Appreciation for Timely Completion of Bhakra Beas Management and Improvement Project | Project Management Efficiency | World Bank |
| 2011 | Jawaharlal Nehru Memorial Trophy for Outstanding Performance in Large Irrigation Projects (Sardar Sarovar Narmada Dam Project) | Large Irrigation Project Excellence | Government of India |
| 2008 | Meritorious Award for Outstanding Performance in Power Plants (Kolha River Project) | Power Plant Construction Excellence | Government of India |
| 1994 | Outstanding Performance and Super Quality Construction Award | Overall Project Delivery | Indian Building Congress |
Patel Engineering Fundamentals
| Metric | Value |
|---|---|
| Market Capitalization | ₹ 4,653.31 Cr |
| Revenue (TTM) | ₹ 4,201 Cr |
| EBITDA (TTM) | ₹ 550 Cr |
| EPS (TTM) | ₹ 2.51 |
| P/E Ratio | 23.59 |
| P/B Ratio | 1.17 |
| Dividend Yield | 0.00% |
| Debt/Equity Ratio | 0.61 |
| Book Value | ₹ 38.17 |
| Face Value | ₹ 1.00 |
| ROE | 6.35% |
| Debt | ₹ 1,542.18 Cr |
Patel Engineering Revenue and Net Profit
| Period | Revenue (Cr) | Net Profit (Cr) | YoY Revenue Growth | YoY Net Profit Growth |
|---|---|---|---|---|
| FY 2023-2024 Q2 (Sep 2023) | 1,021.31 | 37.66 | 14.36% | 62.33% |
| FY 2023-2024 Q1 (Jun 2023) | 1,118.61 | 43.45 | 14.86% | 74.21% |
| FY 2022-2023 (Mar 2023) | 4,201.97 | 183.48 | 24.63% | 26.02% |
| FY 2021-2022 (Mar 2022) | 3,380.29 | 71.85 | 36.67% | 106.58% |
| FY 2020-2021 (Mar 2021) | 1,994.79 | 31.30 | 16.90% | -58.87% |
Patel Engineering Shareholding Patterns
| Category | Holding (%) | Number of Shareholders | Notes |
|---|---|---|---|
| Promoters: | 39.41 | – | Includes pledged shares (88.67% of promoter holdings) |
| Foreign Institutional Investors (FIIs): | 2.36 | 67 | |
| Domestic Institutional Investors (DIIs): | 7.01 | 592 | Includes Mutual Funds, Life Insurance, and Provident Funds |
| Retail Investors: | 51.22 | 330,923 | Individual shareholders |
Patel Engineering Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | 1st Target (Rs.) | 2nd Target (Rs.) |
|---|---|---|
| 2025 | 100 | 125 |
| 2026 | 150 | 170 |
| 2027 | 196 | 218 |
| 2028 | 251 | 293 |
| 2029 | 315 | 376 |
Patel Engineering Share Price Target for 2025
Patel Engineering Share Price Target for 2025 is 100 – 125.
Patel Engineering Share Price Target for 2026
Patel Engineering Share Price Target for 2026 is 150 – 170.
Patel Engineering Share Price Target for 2027
Patel Engineering Share Price Target for 2027 is 196 – 218.
Patel Engineering Share Price Target for 2028
Patel Engineering Share Price Target for 2028 is 251 – 293.
Patel Engineering Share Price Target for 2029
Patel Engineering Share Price Target for 2029 is 315 – 376.
Patel Engineering Dividend History
Patel Engineering doesn’t give any dividends.
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Patel Engineering Share Split History
| Date | Old Face Value | New Face Value | Ex-Split Date | Ratio |
|---|---|---|---|---|
| October 25, 2004 | Rs. 5 | Rs. 1 | April 30, 2004 | 1:5 |
| January 02, 2001 | Rs. 10 | Rs. 5 | December 16, 2000 | 1:2 |
Future Outlook of Patel Engineering
Positives:
- Strong Order Book: As of July 2023, their order book stood at over Rs 20,000 crore, exceeding their annual revenue for the previous year. This indicates promising future revenue generation.
- Focus on Growth Sectors: Targeting projects in hydropower, irrigation, and water treatment aligns well with government initiatives, offering potential for increased contracts and stable profit margins.
- Debt Reduction: Successful debt reduction and lower financing costs improve financial flexibility and pave the way for future investments.
- Experienced Management: Their proven track record and expertise in complex projects can attract new orders and enhance project execution efficiency.
- Technological Adoption: Embracing cutting-edge technologies like automation and BIM can improve project efficiency and competitiveness.
Risks Associated With Investing in Patel Engineering
| Category | Risk | Description | Likelihood | Impact |
|---|---|---|---|---|
| Financial and Project | Project Delays: | Delays in project execution due to land acquisition issues, environmental clearances, material shortages, or technical constraints. | Moderate | Lower revenue, higher costs, reduced profitability. |
| Cost Overruns: | Material price fluctuations, labor disruptions, unforeseen technical challenges, or poor project management can lead to cost overruns exceeding initial budgets. | Moderate | Reduced profit margins, potential debt burden. | |
| Fluctuations in Working Capital: | Project-based nature of business can lead to uneven cash flow and temporary working capital constraints. | Moderate | Difficulty in financing ongoing projects, impact on liquidity. | |
| Dependence on Government Orders: | A significant portion of revenue comes from government contracts, making the company vulnerable to policy changes, budget cuts, or delays in payments. | Moderate | Reduced order book, lower revenue, potential losses. | |
| Competition and Market: | Intense Competition: | The infrastructure sector is highly competitive, with established players and new entrants vying for projects, potentially putting pressure on margins. | High | Difficulty in securing new contracts, lower profitability. |
| Market Slowdown: | Economic slowdown, rising interest rates, or inflation can affect overall project volume and impact the demand for infrastructure services. | Moderate | Reduced order book, potential for losses. | |
| Operational and Strategic: | Execution Risks: | Inefficient project management, sub-optimal resource allocation, or technical hiccups can affect project timelines and quality, impacting reputation and future contracts. | Moderate | Potential project delays, cost overruns, reputational damage. |
| Technological Disruption: | The industry is evolving with technologies like automation and BIM. Failure to adapt and adopt these advancements can hamper competitiveness and efficiency. | Low-Moderate | Potential loss of market share, reduced profitability. | |
| Environmental and Regulatory: | Environmental Impacts: | Construction projects can have environmental consequences, leading to potential regulatory fines, project delays, or reputational damage. | Low-Moderate |
Patel Engineering Competitors
| Category | Company Name | Strengths | Weaknesses |
|---|---|---|---|
| Large Established Players: | – Larsen & Toubro (L&T) | – Extensive experience, diversified portfolio, strong brand reputation – Large resources and financial muscle | – High overhead costs, potential for bureaucratic inefficiencies |
| – Simplex Infrastructure Ltd. | – Strong presence in roads and highways, established track record – Experience in complex projects, focus on sustainability | – Relatively smaller market share compared to L&T | |
| – KEC International Ltd. | – Expertise in power transmission and distribution, strong execution capabilities – Geographic diversification across continents | – Limited exposure to other infrastructure segments | |
| – NCC Ltd. | – Diversification across various infrastructure segments, strong presence in irrigation projects | – Large debt burden, potential for financial constraints | |
| – JMC Projects (India) Ltd. | – Focus on water infrastructure and treatment projects, strong regional presence | – Limited experience in large-scale projects | |
| Emerging Players: | – SPML Infra Ltd. | – Rapid growth, focus on technology adoption and innovation | – Limited experience compared to established players |
| – Dilip Buildcon Ltd. | – Strong execution capabilities, focus on rural infrastructure development | – Limited geographical presence | |
| – Capacit’e Infraprojects Ltd. | – Expertise in renewable energy projects, strong financial backing | – Limited experience in water and transportation projects | |
| International Players: | – Vinci Construction Grands Projets (France) | – Global presence, experience in complex projects, access to international resources | – Limited understanding of local regulations and market dynamics |
| – China State Construction Engineering Corporation (CSCEC) | – Large scale and resources, competitive pricing | – Concerns over quality and transparency in project execution |
Patel Engineering Share Price FAQs
Q: What is the analyst consensus on Patel Engineering’s share price outlook?
A: Analyst opinions on Patel Engineering’s future share price vary, with some being more optimistic than others. Some analysts have set target prices for the next few years ranging from Rs. 100 to Rs. 200 per share. However, it is important to remember that these are just predictions and not guarantees of future performance.
Q: Is Patel Engineering a good investment?
A: Whether or not Patel Engineering is a good investment for you depends on your individual financial situation, risk tolerance, and investment goals. It is important to conduct your own research and due diligence before making any investment decisions. You should also consider consulting with a financial advisor for personalized advice.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
