Rs 20,000 crore order book: Vijay Kedia's portfolio multibagger stock along with JV partner bags order worth Rs 3,637.12 crore; stock hits upper circuit!
As of June 30, 2023, the company's total order book stands at Rs 20,014.20 crore
On Monday, shares of Patel Engineering zoomed and got locked at 5 per cent upper circuit to trade at an intraday high level of Rs 57.01 apiece on BSE. The scrip witnessed massive spurt in volume by more than 1.02 times.
Patel Engineering Limited, a distinguished player in the realm of civil construction, with a specific focus on hydropower and irrigation endeavours, has unveiled a noteworthy development today. The company, in collaboration with its joint venture partner, has successfully secured a letter of award for Lot-4 civil construction undertakings within the Dibang Multipurpose Project. This accolade, previously designated as L1 by NHPC Limited, marks a significant stride forward. Given the company's 50 per cent stake in the joint venture, Patel Engineering Limited stands to claim a substantial portion of the project's value, amounting to a substantial Rs. 1,818.56 crore, while the total value of the contract is Rs 3637.12 crore.
Based on the standalone results, during Q1FY24, the company’s revenue from operations demonstrated a remarkable surge of over 20 per cent compared to the equivalent quarter of the previous year, reaching Rs 1090.70 crore. The operational EBITDA also experienced a notable increase of over 23 per cent from Q1FY23, totalling Rs 152.2 crore. The company's net profit observed a substantial spike of 283.94 per cent when compared to the corresponding quarter of the preceding year, amounting to Rs 130.76 crore. As of June 30, 2023, the company's total order book stands at Rs 20,014.20 crore.
The company has surpassed projections for the quarter and exhibited exceptional performance in comparison to the corresponding period of the prior quarter. Notably, all business segments have witnessed substantial revenue growth during this quarter. The recent influx of projects is anticipated to make a significant contribution to enhancing the overall financial performance of the company.
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Vijay Kedia, a prominent investor and the founder of Kedia Securities has augmented his ownership in the company by 0.39 per cent, resulting in his total stake now amounting to 1.68 per cent. Through his investment firm, Kedia Securities, he has strategically acquired this stake, demonstrating his confidence in the company's potential and future prospects. With his extensive experience and astute investment decisions, Vijay Kedia's involvement signifies a positive endorsement for the company and its growth trajectory.
Patel Engineering, a 73-year-old construction company established in 1949, has grown to become a specialist in the hydro power generation and irrigation sectors. They have worked on various infrastructure projects, including dams, bridges, tunnels, roads, and industrial structures, as well as heavy civil engineering works, primarily as civil contractors, in the hydro power, irrigation and water supply, urban infrastructure, and transportation segments.
The stock has witnessed significant buying activity as it has given multibagger returns of more than 290 per cent in just 3 years. Moreover, the stock has zoomed more than 120 per cent in just 3 months. Keep a close eye on this trending multibagger stock.
Disclaimer: This article is for informational purposes only and not investment advice.