Patel Engineering (PE) is a mid size construction player having strong presence in the high-margin hydro power construction segment.
The company with its access to cutting edge technology is well placed to benefit from the current investment boom in the irrigation domain, especially in Andhra Pradesh.
It has bagged the single largest irrigation project in India, the Pranahita-Chevella Lift irrigation from the Government of Andhra Pradesh worth Rs3,859 crore.
The order bagged is in consortium with BHEL and Navyuga Construction. The lift irrigation project would irrigate an area of 12,20,000 acres.
The project scope includes the related investigation, designing, construction and maintenance work. The project is expected to get commissioned within the next 48 months. We maintain a BUY on the stock, with a target price of Rs316.