ftInvstr
PATELENG · Industrials ₹25.04 -1.22% Mkt Cap ₹2395 Cr undervalued

PATELENG

Industrials Engineering & Construction
₹25.04
-1.22% today · 30d -0.16%
as of 2026-11-09
Price · Daily Candles
“Patel Engineering: FIIs and DIIs boost stakes amid negative FCF predictions and recent Rights Issue”
Patel Engineering's 9.78x P/E ratio is favorable, alongside 1-year revenue and net profit growth of 0.18% and 8.6% respectively. However, ML predictions forecast a severe deterioration in Free Cash Flow (FCF), with a -41.2% predicted decrease over the rolling 4-year horizon, posing a significant risk. Q4 financials reported revenue of ₹1421 Cr and net profit of ₹44 Cr.
BULL CASE
+Annual revenue increased by 0.18% YoY to ₹5103 Cr in FY26.
+Annual net profit grew by 8.6% YoY to ₹269 Cr in FY26.
+The trailing twelve months P/E of 9.78x is considerably lower than the sector average, suggesting potential value.
+DIIs and FIIs increased their holdings by 0.35% and 0.34% QoQ respectively as of March 2026.
+Q4 FY26 operating profit margin was 17.16%.
BEAR CASE
−The stock has seen significant price declines, falling -34.34% over the past year.
−ML models predict severe FCF compression, with a -41.2% decrease over the rolling 4-year average, driving projected FCF negative.
−The 52-week high of ₹46.4 suggests the current price of ₹27.73 is 40.24% off its peak.
−The MACD signal is bearish with a moderate strength of -0.1156.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹1211 Cr
+0.18% YoY
NET PROFIT
₹87 Cr
+19.05% YoY
OPM
15.74%
-1.71pp YoY
EPS
₹0.86
PE 9.78
Intrinsic value · DCF ₹134.34 · Margin of safety +436.5% (undervalued) · FCF yield 18.8%
◇ Sector Position
Patel Engineering trades at a 9.78x P/E with a ROCE of 14.0%, significantly lower than peers like NBCC (47.67x P/E, 27.04% ROCE) and LT (34.54x P/E, 21.24% ROCE).
PEERPEROCE %
PATELENG9.7814.0
LT34.5421.24
RVNL—14.97
NBCC47.6727.04
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒

9 ML-predicted forward-growth ranks across sales, EBIT, and FCF.

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52
SCORE / 100
Overall
6-axis composite of the sections below.
Performance UNDERPERFORMER 5
Valuation CHEAP 90
Growth STEADY 56
Profitability DECENT 68
Technicals WEAK 40
Risk MODERATE 50
Key Stats
TTM PE
9.78
P/B
0.65
52W HIGH
₹38.75
OFF HIGH
-35.38%
MKT CAP
₹2395 Cr
◉ Active Signals
MACDNeutral0.3232
RSI(14)Neutral52.9
Street Consensus
1 analyst
₹33.0
mean target
Low ₹33.0Now ₹25.04High ₹33.0
⧉ Strategy Fit 🔒

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