Multibagger stock Patel Engineering corrects 38% from recent peak. Right time to buy?
Live MintShares of Patel Engineering, one of the major infrastructure and construction companies, have been on a downward trajectory over the last 7 months, losing 26% of their value to trade at the current level of ₹48.30 apiece. Growth drivers Healthy Order book: As of H1FY25, Patel Engineering has a robust order book worth ₹173 billion, offering nearly 4 years of revenue visibility. IDBI Capital expects Patel Engineering to sustain margins within this range, as a significant portion of its order book is driven by hydro projects, which typically offer better margins compared to other segments. Positive OCF: Patel Engineering has reported positive operating cash flow over the past four years, with working capital days standing at 100, primarily driven by unresolved arbitration claims and land holdings. Technical outlook Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stockbrokers said, "Currently, the stock has formed a head-and-shoulders pattern on the weekly chart, raising concerns about potential bearish momentum.
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