Patel Engineering Limited (PATELENG) AI Stock Analysis

• Market Cap: ₹30.79B
• Dividend Yield: N/A
• Average Volume (3M): 274.76K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.65
• Revenue Growth: 12.37%
• EPS Growth: -22.25%
• Country: IN
• Employees: 4,580
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.84
• Shares Outstanding: 844,376,100
• 10 Day Avg. Volume: 172,937
• 30 Day Avg. Volume: 274,758
• PEG Ratio: -0.80
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 12.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹45.00
• Price Target Upside: 27.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹41.00 ▲(15.82% Upside)

Patel Engineering Limited shows strong financial performance with robust revenue growth and cash flow management. However, technical indicators suggest potential bearish sentiment, and the stock's valuation is moderate. The absence of dividend yield and earnings call data limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful project execution, which supports long-term business sustainability.

Cash Flow Management

Efficient cash flow management enhances liquidity and provides the company with the flexibility to fund operations and future growth initiatives.

Balance Sheet Stability

A stable balance sheet with efficient use of capital supports financial health and positions the company well for future opportunities.

Negative Factors

Net Income Fluctuations

Variability in net income can impact profitability and indicates potential challenges in cost management or revenue consistency.

Financial Leverage

Higher leverage increases financial risk and could limit the company's ability to respond to economic downturns or invest in growth.

Net Profit Margin Variability

Inconsistent profit margins suggest challenges in maintaining cost efficiency, which can affect long-term profitability.

Patel Engineering Limited Business Overview & Revenue Model

Company Description

Patel Engineering Limited, together with its subsidiaries, provides infrastructure and construction services in India and internationally. It undertakes hydro-power and transport projects, water works, urban structures, and micro tunnelling projects; and residential and commercial real estate projects. The company was incorporated in 1949 and is based in Mumbai, India.

How the Company Makes Money

Patel Engineering Limited generates revenue primarily through the execution of large infrastructure contracts awarded by government agencies, public sector undertakings, and private corporations. The company earns money by bidding for and winning contracts related to construction and engineering projects, which include the building of dams, roads, and urban infrastructure. Key revenue streams include fixed-price contracts, where income is derived from the completion of specific project milestones, and cost-plus contracts, where the company is reimbursed for its costs plus a margin. Additionally, PATELENG benefits from strategic partnerships with governmental and non-governmental organizations that help secure funding and increase project opportunities. The company's focus on sustainable engineering practices and innovative construction techniques also positions it favorably for future contracts, particularly as infrastructure needs evolve.

Patel Engineering Limited Financial Statement Overview

Summary

Patel Engineering Limited demonstrates solid financial health with strong revenue growth and effective cash flow management. However, fluctuations in net income and a moderate level of financial leverage require careful monitoring.

Income Statement

Patel Engineering Limited has shown a strong revenue growth rate with an upward trajectory over the years, moving from INR 17,842 million in 2021 to INR 50,934 million in 2025. The gross profit margin has also improved, supporting profitability. However, the net profit margin experienced fluctuations, indicating some variability in cost management or other expenses.

Balance Sheet

The company's balance sheet reflects stability with a manageable debt-to-equity ratio, albeit with a slight increase in total debt. The return on equity has been positive, indicating efficient use of shareholders' capital. Nonetheless, the equity ratio indicates a moderate level of financial leverage, which could pose risks if not managed well.

Cash Flow

Cash flow analysis reveals strong operating cash flows, enhancing liquidity. The company has maintained positive free cash flow, which is crucial for funding operations and growth. Despite a decrease in free cash flow growth in recent years, the operating cash flow to net income ratio remains robust, highlighting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	52.25B	50.93B	45.44B	38.91B	33.80B	19.95B
Gross Profit	13.59B	13.99B	12.52B	6.35B	9.36B	4.92B
EBITDA	8.17B	7.26B	7.96B	6.76B	6.13B	1.26B
Net Income	2.74B	2.48B	2.90B	1.83B	720.98M	-2.91B
Balance Sheet
Total Assets	0.00	95.80B	89.96B	87.50B	85.10B	80.87B
Cash, Cash Equivalents and Short-Term Investments	5.16B	5.16B	3.39B	4.40B	2.62B	1.96B
Total Debt	0.00	16.15B	19.10B	17.70B	22.92B	22.92B
Total Liabilities	-37.77B	58.03B	58.34B	57.74B	60.55B	57.06B
Stockholders Equity	37.77B	37.85B	31.54B	28.88B	23.84B	23.20B
Cash Flow
Free Cash Flow	0.00	2.73B	5.29B	5.09B	3.56B	2.55B
Operating Cash Flow	0.00	3.63B	6.88B	6.93B	5.37B	3.89B
Investing Cash Flow	0.00	-148.25M	-1.32B	-2.17B	-1.44B	68.79M
Financing Cash Flow	0.00	-2.83B	-4.29B	-2.10B	-3.40B	-3.11B

Patel Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PATELENG, the sentiment is Negative. The current price of 35.4 is above the 20-day moving average (MA) of 35.01, below the 50-day MA of 36.55, and below the 200-day MA of 39.83, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PATELENG.

Patel Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATELENG	65 Neutral	₹30.79B	11.56	―	―	12.37%	-22.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KNRCON	62 Neutral	₹50.48B	5.30	―	0.15%	-42.73%	-44.36%
DBL	60 Neutral	₹75.93B	10.42	―	0.21%	-13.57%	40.24%
HGINFRA	57 Neutral	₹59.04B	13.37	―	0.23%	-8.92%	-22.83%
HCC	44 Neutral	₹50.42B	29.97	―	―	-31.50%	-74.38%