If you’re tracking civil-construction plays or hunting value in mid-cap engineering names, Patel Engineering (PATELENG) deserves a careful look. Below is a practical, SEO-friendly, thoroughly-sourced breakdown of everything the Screener consolidated company page shows — business, numbers, risks, and what those mean for the Patel Engineering share price. All figures come from the consolidated Screener page snapshot cited throughout.
Quick snapshot (what the market sees right now)
Current price: ₹37.6 (Screener snapshot; timestamp shown on page).
Market cap: ~₹3,179 crore.
52-week high / low shown on page: High ₹59.6 / Low ₹33.6.
Valuation & capital metrics: Stock P/E ~8.40, Book value ₹44.8, Dividend yield 0%, Face value ₹1.00.
Profitability snapshots: ROCE ~15.4%, ROE ~10.4% (as reported on the consolidated page).
These are the immediate numbers that drive headlines and the short-term patel engineering share price movement.
What Patel Engineering does (business summary)
Patel Engineering is a heavy-civil contractor focused on dams, hydropower, tunnels, irrigation, roads, bridges, piling and large industrial structures — essentially specialized infrastructure and water/hydro projects. That sector mix explains both strong project awards in niche hydropower/irrigation and lumpy earnings tied to large contract wins and project execution.
Financial deep-dive (consolidated view — highlights)
(All numbers below taken from the consolidated Profit & Loss / Balance sheet / Cash Flow tables on the Screener page.)
Revenue & profit trends
Consolidated sales have grown materially over recent years (TTM sales shown ~₹5,225 crore) with compounded sales growth: 10-yr 4%, 5-yr 14%, 3-yr 15%, TTM ~15%. Net profit (consolidated) shows recovery and strong growth in recent years — Screener reports compounded profit growth 5-yr ~179% and TTM growth ~65%. These figures point to strong profit recovery off earlier stressed years.
Quarterly performance
Quarterly consolidated table shows seasonal and project-driven swings — example (selected): Sales in Jun-2025 ~₹1,233 cr, operating margin ~13% that quarter, net profit and EPS also show recovery (EPS Jun-2025 ~₹0.96). The company’s quarterly OPM has hovered in mid-teens in recent quarters. Use the full quarters table on the Screener page to track quarter-by-quarter trends.
Balance sheet & leverage
Borrowings (consolidated) have come down from earlier highs — the page shows borrowings at ~₹1,615 cr (Mar-2025) compared with higher levels in prior years. Total liabilities and other liabilities are sizeable, but the reduction in gross borrowings is a positive trend to monitor.
Cash flow
Operating cash flows are generally positive in recent years (examples on the page show operating cash flow swings; net cash flow has been variable). Financing activity shows the company has been actively managing debt and financing, which aligns with the borrowing trends. Check the Cash Flow table on Screener for year-by-year detail.
Key ratios & operating metrics (what matters for valuation)
P/E ~8.4 and Price / Book ~0.86x (stock trading below book per the page), indicating low valuation relative to accounting book value.
ROCE ~15%, ROE ~10% — reasonable return metrics for a heavy engineering firm recovering from cyclical headwinds.
Working capital / cash conversion: Screener lists working capital days and cash conversion cycle data (these have been volatile historically for the company; watch trends quarter-to-quarter).
Pros, cons and the risks you can’t ignore
Pros :
(from the Screener summary):Trading below book value (0.86x book) — potential value play if assets and execution hold up.
Strong profit growth in recent years (Screener flags very high compounded profit growth).
Cons : Risks (important for any investor):High contingent liabilities: Screener flags contingent liabilities of around ₹2,681 crore — a major red flag that can change the risk profile.
Promoter pledge / encumbrance: Promoters have ~88.7% of their holding pledged or encumbered, and promoter holding has decreased over 3 years (~-18.5% change). Pledging at high levels increases forced-sale risk and governance concerns.
Cost of borrowing & interest: The page highlights borrowing cost concerns (interest line items are material) — watch interest coverage and absolute interest expense.
Dividend policy: No dividend payout (0% historically), which matters if you’re income-focused.
These cons are the very reasons the patel engineering share price can remain volatile despite low book valuations.
Valuation & what it implies for the Patel Engineering share price
At P/E ~8.4 and trading below book, the stock reads as a value candidate on headline multiples — but multiples don’t capture contingent liabilities or promoter pledge risk. Screener’s data suggests the market is pricing-in execution and liability risk even while rewarding recent profit recovery.
For value investors: the low price-to-book and improving ROCE are attractive if (a) contingent liabilities are resolved or proven non-material, (b) promoters reduce pledge exposure, and (c) orderbook/execution continues to generate cash flow. For traders/speculators: short-term moves will likely follow project wins, quarterly results, and any news on liabilities/pledges.
Recent operational signs (projects & order wins)
The Screener consolidated page bundles financials and alerts that the company remains active in its core segments (hydropower, tunneling, irrigation) — historically Patel wins large standalone contracts that can swing revenues and earnings materially. Watch corporate announcements / orderbook updates for near-term catalysts. (For the most recent project wins and press releases, use the company investor relations page or exchange filings; Screener links to the company site and exchanges.)
Practical checklist for tracking patel engineering share price
If you want to follow this name, monitor these items weekly/monthly:
1. Exchange filings / disclosures — any change in contingent liabilities or litigation updates.
2. Promoter pledge updates — lower pledge often reduces downside risk.
3. Quarterly operating cash flows and interest costs — cash flow conversion is critical in construction.
4. New project awards / orderbook size and realization timelines — big contracts move the topline.
5. Valuation re-rating signs: sustained ROCE improvement plus stable debt levels.
Bottom line (straight talk)
Patel Engineering’s consolidated Screener snapshot shows a company with improving profitability, trading below book and at low P/E — attractive on multiple fronts — but with significant conditional risks (large contingent liabilities and heavy promoter pledge) that can keep the patel engineering share price volatile. If you’re investing, treat this as a conditional value play: do the legal & notes diligence, watch cash flow and pledge reduction, and expect event-driven price moves tied to project wins or liability resolutions.
