Vijay Kedia’s multibagger penny stock under Rs 60 with Rs 1,79,019 million order book: Company signs MoU with Rail Vikas Nigam Ltd (RVNL)
The stock gave multibagger returns of over 300 per cent in just 3 years whereas BSE Small-Cap Index is up by 100 per cent.
On Friday, shares of Patel Engineering Ltd gained 6.17 per cent to Rs 57.24 per share with an intraday high of Rs 57.40 and an intraday low of Rs 54.76 from its previous closing of Rs 53.64. The stock’s 52-week high is Rs 79 while its 52-week low of Rs 41.99. The stock gave multibagger returns of over 300 per cent in just 3 years whereas BSE Small-Cap Index is up by 100 per cent.
Patel Engineering Limited (the Company), announced that it has signed a Memorandum of Understanding (MOU) with Rail Vikas Nigam Limited (RVNL), a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways, Government of India, which works as the construction arm of the Ministry of Railways. The MOU marks the beginning of a strategic partnership aimed at jointly executing projects in the field of hydro and other infrastructure projects both within India and internationally.
The agreement outlines a framework for collaboration between the Company and RVNL to leverage each other’s strengths and capabilities in pursuing hydro and other infrastructure projects. Under this MOU, both parties will explore opportunities to work together in various capacities. The signing of this MOU signifies a milestone in the collaborative efforts between a private and a public sector to advance infrastructure development in India and beyond. The Company is dedicated to exploring and capitalizing on opportunities that align with its strategic objectives and contribute to sustainable infrastructure growth.
Key highlights of the MoU include:
· Joint Project Execution: The Company and RVNL will collaborate on certain identified hydro and other infrastructure projects as opportunities arise. This partnership will combine the Company’s extensive infrastructure experience with RVNL’s expertise in rail and transport infrastructure.
· Flexible Collaboration Models: The parties have the flexibility to participate in tenders and project bids either jointly or separately. When bidding together, both entities will align on the bidding strategy, structure, and terms of the collaboration, ensuring a unified approach to project execution.
· Focused Efforts for Synergies: The MOU emphasizes creating an enabling framework to achieve synergies in hydro and other infrastructure domains, reflecting a shared commitment to high standards of project delivery and excellence
DSIJ’s 'Tiny Treasure' service recommends researched small-cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
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 4,800 crore with a 3-year stock price CAGR of 70 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.
Also Read: 5:1 stock split: Penny stock under Rs 5 locked in upper circuit as company’s mining subsidiary secures total export orders worth Rs 661 crore