Rs 1,79,019 million order book: Vijay Kedia’s portfolio penny stock under Rs 65 Jumps 9.6 per cent from intraday low; Recently signed MoU with RVNL

The stock gave multibagger returns of over 300 per cent in just 3 years whereas BSE Small-Cap Index is up by 102 per cent.

On Monday, shares of Patel Engineering Ltd gained 9.60 per cent to an intraday high of Rs 60.44 per share from its intraday low of Rs 55.15. 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 59.11 per share, up 3.65 per cent from its previous closing of Rs 57.03 per share. The stock gave multibagger returns of over 300 per cent in just 3 years whereas BSE Small-Cap Index is up by 102 per cent.

Patel Engineering Limited has 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.

The MOU provides flexibility in project execution, allowing the companies to participate in tenders and bids either jointly or separately. When working together, they will align on bidding strategies and project terms to ensure a unified approach. The agreement also emphasizes creating synergies in hydro and other infrastructure domains, reflecting a shared commitment to delivering high-quality projects and contributing to sustainable infrastructure development.

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 over Rs 4,900 crore with a 3-year stock price CAGR of 80 per cent.

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. 

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