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INVESTMENT INSIGHTS

Check Before You Invest : Patel Engineering Ltd

BSE: 531120 NSE: PATELENG ISIN: INE244B01030
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Patel Engineering Ltd belong to?
Patel Engineering Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Patel Engineering Ltd a good quality company?
Patel Engineering Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Patel Engineering Ltd undervalued or overvalued?
Patel Engineering Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Patel Engineering Ltd a good buy now?
Patel Engineering Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Patel Engineering Ltd?
Patel Engineering Ltd revenue growth is 5.1% for FY-2025 , which is below its 5 year CAGR of 13% , indicating slower growth.
Q.2 Gross Profit margin of Patel Engineering Ltd?
Patel Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.2% for FY-2025 , which is above its 5 year median of 7.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Patel Engineering Ltd?
Patel Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.88% for FY-2025 , which is above its 5 year median of 15.38% indicating increasing margins.
Q.4 Net Profit Margin of Patel Engineering Ltd?
Patel Engineering Ltd Net Profit Margin is 5.01% for FY-2025 , is above with its 5 year median of 3.84%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 12.2 7.1
Operating Profit Margin 15.88 15.38
Net Profit Margin 5.01 3.84
Q.5 Return on Asset of Patel Engineering Ltd?
Patel Engineering Ltd Return on Asset is 2.53%, which is above its 5 year historical median of 1.69%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Patel Engineering Ltd?
Patel Engineering Ltd Return on equity is 6.96% for FY-2025 , which is above its historical median of 5.59%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Patel Engineering Ltd?
Patel Engineering Ltd Return on capital employed is 12.61% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Patel Engineering Ltd?
Patel Engineering Ltd Cash conversion cycle is 178 days, below its historical median of 245 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.5 0.44
ROE 6.96 5.59
ROCE 12.61 12.61
Cash Conversion Cycle 178 days 245 days
Q.9 Debt to Equity ratio of Patel Engineering Ltd?
Patel Engineering Ltd Debt-to-Equity ratio is 0.43 , which is above with the industry average of 0.37 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Patel Engineering Ltd?
Patel Engineering Ltd Debt to cash flow from operations is 4.41 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Patel Engineering Ltd?
Promoters hold 31.48% of the Patel Engineering Ltd, with 86.58% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Patel Engineering Ltd vs industry peers?
Patel Engineering Ltd revenue CAGR is 13.03% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,715 101.5
Gross Profit 575.2 5.2
Operating Profit 733 6
Net Profit 236 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.5 0.63
ROE 6.96 6.64
ROCE 12.61 11.13
Cash Conversion Cycle (days) 177.62 52

Valuation & price assessment

Q.1 Stock return of Patel Engineering Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -2.8% 22.8% 18.1% -32.4%
Q.3 Valuation ratios of Patel Engineering Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10.67 11.49 27.03
Price to Book 0.64 0.86 1.70
Price to Sales 0.53 0.64 1.45
EV to EBITDA 4.44 5.65 11.36

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10. NCC
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