Patel Engineering Limited (IN:PATELENG)
:PATELENG
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Patel Engineering Limited
(PATELENG)
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Rating:67Neutral
Price Target:
₹33.00
▲(14.50% Upside)
Action:Reiterated
Date:06/18/26
The score is driven mainly by improving fundamentals and lower leverage, but tempered by FY2026 margin and cash-flow deterioration (weaker free-cash-flow conversion). Technicals are moderately supportive with price above short/medium DMAs and a positive MACD, while valuation appears reasonable at ~11.5x earnings.
Positive Factors
De-levered balance sheet
The meaningful decline in debt-to-equity to ~0.27 materially lowers financial risk and interest burden, improving funding optionality. With a de-risked balance sheet the company can better absorb project timing mismatches, pursue new contracts, and reduce refinancing exposure over the medium term.
Negative Factors
Weakened cash generation
A ~65% decline in free cash flow and FCF covering only about half of net income reduce liquidity and financial flexibility. Persistent volatility in cash conversion raises reliance on external funding for working capital and bidding, increasing execution and near-term funding risk for multi-year projects.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered balance sheet
The meaningful decline in debt-to-equity to ~0.27 materially lowers financial risk and interest burden, improving funding optionality. With a de-risked balance sheet the company can better absorb project timing mismatches, pursue new contracts, and reduce refinancing exposure over the medium term.
Read all positive factors
Patel Engineering Limited (PATELENG) vs. iShares MSCI India ETF (INDA)
Market Cap
₹29.44B
Dividend YieldN/A
Average Volume (3M)274.76K
Price to Earnings (P/E)11.2
Beta (1Y)1.45
Revenue Growth0.18%
EPS Growth5.64%
CountryIN
Employees4,580
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)3.14
Shares Outstanding992,141,900
10 Day Avg. Volume172,937
30 Day Avg. Volume274,758
Financial Highlights & Ratios
PEG Ratio5.47
Price to Book (P/B)0.45
Price to Sales (P/S)0.39
P/FCF Ratio17.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.93
Revenue Forecast (FY)₹59.19B
Patel Engineering Limited Business Overview & Revenue Model
Company Description
Patel Engineering Limited, alongside its various subsidiaries, provides a wide array of construction and infrastructure development services, operating both domestically within India and on an international scale. The company's diverse project und...
How the Company Makes Money
Patel Engineering primarily makes money by executing infrastructure construction contracts awarded by government and public-sector entities and, where applicable, private clients. Its main revenue stream is contract revenue recognized as project w...
Patel Engineering Limited Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
73
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.59B | 51.03B | 50.93B | 45.44B | 38.91B | 33.80B |
| Gross Profit | 12.22B | 8.29B | 13.99B | 12.52B | 6.35B | 9.36B |
| EBITDA | 8.04B | 6.84B | 7.26B | 7.96B | 6.76B | 6.13B |
| Net Income | 2.72B | 2.61B | 2.48B | 2.90B | 1.83B | 720.98M |
Balance Sheet | ||||||
| Total Assets | 96.20B | 95.22B | 95.80B | 89.96B | 87.50B | 85.10B |
| Cash, Cash Equivalents and Short-Term Investments | 6.49B | 5.50B | 5.16B | 3.39B | 4.40B | 2.62B |
| Total Debt | 15.60B | 12.16B | 16.15B | 19.10B | 17.70B | 22.92B |
| Total Liabilities | 56.87B | 50.80B | 58.03B | 58.34B | 57.74B | 60.55B |
| Stockholders Equity | 39.33B | 44.40B | 37.85B | 31.54B | 28.88B | 23.84B |
Cash Flow | ||||||
| Free Cash Flow | 3.32B | 1.15B | 2.73B | 5.29B | 5.09B | 3.56B |
| Operating Cash Flow | 3.80B | 2.25B | 3.63B | 6.88B | 6.93B | 5.37B |
| Investing Cash Flow | -4.84M | -146.56M | -148.25M | -1.32B | -2.17B | -1.44B |
| Financing Cash Flow | -2.41B | -812.72M | -2.83B | -4.29B | -2.10B | -3.40B |
Patel Engineering Limited Technical Analysis
Positive
28.82
Price Trends
27.56
Positive
27.22
Positive
30.88
Positive
Market Momentum
0.76
Negative
66.82
Neutral
83.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PATELENG, the sentiment is Positive. The current price of 28.82 is above the 20-day moving average (MA) of 27.52, above the 50-day MA of 27.56, and below the 200-day MA of 30.88, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 66.82 is Neutral, neither overbought nor oversold. The STOCH value of 83.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PATELENG.
Patel Engineering Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | ₹29.44B | 11.24 | ― | ― | 0.18% | 5.64% | |
65 Neutral | ₹37.86B | 1.34 | ― | ― | -25.08% | 51.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | ₹70.78B | 36.07 | ― | ― | -29.16% | 44.18% | |
51 Neutral | ₹129.04B | 21.95 | ― | 1.56% | -15.69% | -18.10% | |
51 Neutral | ₹97.82B | 14.41 | ― | 1.37% | -6.20% | -17.64% | |
50 Neutral | ₹115.25B | 46.55 | ― | 0.65% | -4.78% | -50.23% |
* Industrials Sector Average
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Patel Engineering Limited Corporate Events
Patel Engineering Publishes Postal Ballot, E-Voting Notice for Shareholder Approvals
Apr 21, 2026
Patel Engineering Limited has notified the stock exchanges that it has published a notice to shareholders regarding a postal ballot and remote e-voting process, in line with SEBI’s Listing Regulations on disclosure and investor communication...
Patel Engineering Wins Rs 910-Crore Renuka Ji Dam Contract from HPPCL
Mar 19, 2026
Patel Engineering Limited has secured a Letter of Award from Himachal Pradesh Power Corporation Limited for Package-1 of the Renuka Ji Dam Project in Himachal Pradesh, a contract valued at Rs. 910.08 crore including GST. The award follows the firm...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.