Rs 1,79,019 Million Order Book: Vijay Kedia’s Portfolio Penny Stock Under Rs 60 Jumps 6.6 Per Cent As Company Signed MoU With Ircon International Ltd

The stock gave multibagger returns of over 550 per cent in just 5 years whereas BSE Sensex Index is up by 107.4 per cent.

On Thursday, shares of Patel Engineering Ltd gained 6.63 per cent to an intraday high of Rs 58.02 per share from its previous closing of Rs 54.41. The stock’s 52-week high is Rs 79 while its 52-week low of Rs 41.99. At the closing bell, shares of the company were trading at Rs 56.69 per share, up 4.19 per cent with a spurt in volume by more than 1.65 times. The stock gave multibagger returns of over 550 per cent in just 5 years whereas BSE Sensex Index is up by 107.4 per cent.

Patel Engineering Limited has signed a Memorandum of Understanding (MoU) with Ircon International Limited for collaboration and co-operation with each other to explore, identify, pursue and jointly execute mutually beneficial business opportunities in various infrastructure projects in India and Overseas.

Earlier, the company formed a strategic partnership with Rail Vikas Nigam Limited to jointly undertake hydro and other infrastructure projects both domestically and internationally. The Memorandum of Understanding outlines a framework for collaboration that leverages the strengths of both companies. By combining Patel Engineering's infrastructure expertise with RVNL's experience in rail and transport, the partnership aims to capitalize on opportunities in the growing infrastructure sector.

About the Company

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 Rs 4,787 crore.

According to Quarterly Results, the company reported net sales of Rs 1,101.7 crore in Q1FY25 compared to net sales of Rs 1,118.61 crore in Q1FY24. The net profit increased by 26.1 per cent to Rs 54.72 crore in Q1FY25 compared to a net profit of Rs 43.40 crore in Q1FY25. In its annual results, the net sales increased by 16.8 per cent to Rs 44,544.1 crore and net profit increased by 110 per cent to Rs 301.6 crore in FY24 over FY23.

Order book: As of June 30, 2024, the company’s order book stands at Rs 1,79,019 million (Including L1 Orders). Segment-wise order book includes hydroelectric (61.53 per cent), irrigation (21.99 per cent), tunnel (10.54 per cent, road (2.45 per cent) and other (3.49 per cent). 

As of June 2024, an ace investor, Vijay Kedia sold a 0.13 per cent stake in the company and decreased its stake to 1.48 per cent compared to 1.55 per cent in March 2024. As of June 2024, 88.7 per cent of promoters’ stake is pledged. Investors should keep an eye on this penny stock.

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