Vijay Kedia’s multibagger marvel: This small-cap stock hits fresh 52-week high after the JV bags Rs 1,275 crore project!
The company has surpassed projections for the quarter and exhibited exceptional performance in comparison to the corresponding period of the prior quarter
On Tuesday, shares of Patel Engineering surged more than 4 per cent to trade at a new 52-week high level of Rs 58.54 apiece on BSE. At the end of the trading session of the day, the scrip closed 0.30 per cent down at Rs 55.94 per share on BSE.
The Government of Madhya Pradesh's undertaking has officially designated Patel Engineering as the successful bidder in a Joint venture (JV) involving a contract worth Rs 1,275.30 crore. This contract encompasses a comprehensive scope including engineering, procurement, construction, testing, commissioning, trial run, and a 10-year operation and maintenance commitment for the Narmada-Gambhir multi-village drinking water supply scheme in the Ujjain and Indore districts. This entire endeavour is being executed as a turn-key project.
Patel Engineering's portion within this contract stands at 35 per cent, which is equivalent to Rs 446.36 crore, for their contribution to the project, which is projected to be accomplished over a period of 24 months. The location of this undertaking is in the Ujjain and Indore districts of Madhya Pradesh.
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: The article is for informational purposes only and not investment advice.