Thanks for sharing. Does anyone know why the interest rate on their borrowings seems so very high. For example, as per screener, total borrowings at end of FY24 was 1910 Cr while interest cost in FY25 was 322 Cr implying interest rate of about 17% !! AM I missing something?
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I think they have mentioned that customer advances are quite expensive. They plan to redirect resources away from high cost liabilities going forward.
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There must be something which is not known in public.
Today one of my known, told me about NCD from Patel Engineering coming at 10.25% yield, on top of that I am sure they would be making additonal expenses of minimum 3% (to arranger, brokers, and issue manager etc.).
Wondering if Bank credit has dried up for this company - which I am sure is available at relatively better rates (atleast below 10%).
Disc: Not invested yet.
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This right issue of 500crs if successful can be gamechanger for the company as it under debt pressure as observed by huge interest cost of above 300crs.
Market cap of company is approx 3000crs and the order book as on 30 Sept, 2025 is 15200crs and yesterday they received around 800crs order which bring the total to 16000crs.
So if it all pans out well for the company we can see a potential re-rating.
Current book value according to screener is Rs46.
Everyone’s focused on the 14% jump today, but the real story for Patel Engineering is the massive pipeline. The MD said they have over ₹34,000 Cr of tenders under evaluation.
This ₹798 Cr coal win is honestly just the appetizer. What happens when the main course lands?
It’s hard to ignore when a single new contract is ~25% of the company’s entire market cap
but the execution is only aprox 10% yoy that’s why its trading low..
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Execution is not that so good for this co
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Again it has grabbed order of Rs1700crs.
Against the market cap of odd Rs3000crs company has order book of Rs17500crs.
Something is not adding up.
Interest cost is around 14-15% according to screener.
I have a feeling that this rights issue can be turnaround for the company contingent they level up their execution.