Heavy buying Vijay Kedia’s portfolio multibagger penny stock under Rs 70 with Rs 18,663 crore order book; rockets over 5 per cent; do you own it?

The stock gave multibagger returns of 140 per cent in just 1 year whereas BSE Small-Cap Index is up by 60 per cent.

On Friday, shares of Patel Engineering Ltd gained 5 per cent to an intraday high of Rs 69.19 per share from its previous closing of Rs 65.93. The stock’s 52-week high is Rs 79 while its 52-week low of Rs 28.01. The stock gave multibagger returns of 140 per cent in just 1 year whereas BSE Small-Cap Index is up by 60 per cent. The shares of the company saw a spurt in volume by more than 2.59 times on BSE.

Patel Engineering Ltd is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works in areas like hydro, irrigation & water supply, urban infrastructure and transport. The company has a market cap of over Rs 5,700 crore with a 3-year stock price CAGR of 70 per cent.

Order book: As of March 31, 2023, the company’s order book stands at Rs 18,663 crore (Including L1 Orders). Segment-wise order book includes hydroelectric (61.89 per cent), irrigation (20.89 per cent), tunnel (10.74 per cent, road (2.75 per cent) and other (3.64 per cent). 

Patel Engineering Limited (PEL) has received approval from its board to acquire a 10 per cent stake in Shail Tunnelling and Infra Private Limited (Shail Tunnelling). Shail Tunnelling is a newly incorporated company established in January 2024 and operates in the service industry. They specialize in consultancy services for tunnel project design and engineering, supplying construction equipment for tunnel and infrastructure projects, and assisting with bid preparation and equipment operation. PEL views this acquisition as a strategic investment that will augment its existing tunnelling operations. Tunnelling is a complementary business for PEL, and acquiring expertise in these related services will strengthen its overall offering. The acquisition is expected to be completed by June 30, 2024, with a total investment not exceeding Rs. 51,000.

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In addition to the acquisition, PEL has been awarded a significant contract by the Government of Maharashtra. The company, along with a joint venture partner, has been declared the lowest bidder for a Rs 342.76 crore project involving the construction of a water-lifting arrangement for the Jigaon project. PEL's share of the project is 35 per cent, and it is expected to be completed within 24 months.

As of March 2024, an ace investor, Vijay Kedia sold 10,00,000 shares or 0.13 per cent stake in the company and decreased its stake to 1.55 per cent compared to 1.68 per cent in December 2023.

Do you own Patel Engineering Ltd.’s stock backed by ace investor Vijay Kedia, in your portfolio? Do let us know in the comment session below

Disclaimer: The article is for informational purposes only and not investment advice.