Synopsis: Patel Engineering Ltd jumps 3% after being declared L1 for the ₹133.25 crore Tasgaon Lift Irrigation project. PEL’s ₹67.96 crore share covers 51% of the work over 48 months, including headworks, pump houses, and pipelines to irrigate 2,277 hectares in six Satara villages.
The shares of the Small-cap company, which specializes in heavy civil engineering and infrastructure construction, with core expertise in hydropower projects, tunneling, and irrigation systems, are in focus as its JV has been declared the L1 Bidder for the Rs. 133.25 Crore Irrigation Project in Maharashtra.
With a market capitalization of Rs. 2,807.76 Crores on the Day’s Trade, the shares of Patel Engineering Ltd rose by 3.07 percent, reaching a high of Rs. 28.79 compared to its previous close of Rs. 27.93. As of December 2025, Vijay Kedia, through Kedia Securities Private Limited – 2, holds a 1.01 percent stake in the company.
What Happened
Patel Engineering Ltd, engaged in heavy civil engineering and infrastructure construction, with core expertise in hydropower projects, tunneling, and irrigation systems, in a joint venture, has been declared the lowest bidder (L1) by Maharashtra Krishna Valley Development Corporation, Pune, for a Rs. 133.25 crore irrigation project. PEL’s share in the contract is Rs. 67.96 crore, and the project will be completed over 48 months.
The project, under the Tasgaon Lift Irrigation Scheme, covers six villages in Satara Taluka, Satara District, and includes construction of head works, pump houses, switch yards, rising mains, delivery chambers, and installation of pumping machinery, along with allied civil, mechanical, and electrical works.
It also involves developing a closed pipe distribution system to irrigate 2,277 hectares, including excavation for pipelines and laying of mild steel, prestressed cement concrete, and HDPE pipes. PEL will execute 51% of the joint venture’s scope of work.
Financials
The company’s revenue rose by 2.81 percent from Rs. 1,206 crores in December 2024 to Rs. 1,239 crores in December 2025. Meanwhile, Net profit declined from Rs. 82 crore to Rs. 72 crores in the same period.
The company shows strong fundamentals with a ROCE of 15.4%, ROE of 10.4%, and a conservative debt-to-equity of 0.40, reflecting both efficiency and financial stability, while delivering an impressive 179% CAGR in profits over five years. Its consistent growth highlights excellent management execution and operational strength.
Its valuation is attractive, with a P/E of 7.45 versus an industry average of 15.7 and trading at 0.70 times book value, indicating significant undervaluation relative to its performance, making it a compelling growth-and-value opportunity. This combination of low valuation and high growth potential positions the stock favorably for long-term investors.
Patel Engineering Ltd is a 76-year-old company, established in 1949, with a strong presence in the hydropower, tunneling, and irrigation sectors. The Company has a consistent track record of executing projects both domestically and internationally.
PEL has successfully completed over 85 dams, 40 hydroelectric projects, and more than 300 km of tunneling, primarily serving clients such as central public sector undertakings (PSUs) and state government organizations.
The order book is divided by segments with a total value of Rs. 15,123.2 crores. The Hydroelectric segment leads with 16 projects valued at Rs. 8,855.1 crores (58.55%), followed by Irrigation with 21 projects worth Rs. 2,851.5 crores (18.86%). Tunnel projects account for 5 projects valued at Rs. 939.0 crores (6.21%), Road has 5 projects at Rs. 215.3 crores (1.42%), and Others include 5 projects totaling Rs. 2,262.3 crores (14.96%).
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