Patel Engineering | Stock Performance Analysis & Market Updates

Patel Engineering secures an irrigation project from the Government of Telangana

Super Investor Vijay Kedia holds a 1.68% stake in the company, according to a recent update. Read on to know more.

Patel Engineering Ltd is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other types of heavy civil engineering works in areas such as hydro, irrigation & water supply, urban infrastructure, and transport. The company has made a significant announcement regarding orders received by the company.

Order Details

According to the information available in the company’s press release, Patel Engineering Limited, in partnership with its Joint Venture Partner, has been declared as L1 by the Irrigation & CAD Department, Government of Telangana, for a contract valued at Rs. 525.36 crore. Patel Engineering’s share in the contract is Rs. 267.93 crore.

The contract entails the construction of an RCC Protection Wall along the right and left flanks of River Munneru, spanning between Polepally and Prakashnagar in Khammam City, Khammam District. The project is scheduled for completion within 24 months. Situated in the state of Telangana, the project will be executed as a Joint Venture, with PEL holding a 51% share.

The project scope includes the construction of an 8.5 Km RCC Protection Wall on both sides of the river Munneru and a 2 Km embankment on each side near Nagarjuna Sagar Left Bank Aqueduct in Khammam City.

Share Performance

Today, the company’s shares commenced trading at Rs 71.89 per share, which is higher compared to the preceding day’s closing figure of Rs 71.55 per share. During the intraday trading session, the stock reached highs and lows of Rs 73.43 and Rs 69.55 respectively. Currently, the company’s shares are trading at Rs 71.75 per share on the BSE, reflecting a gain of 0.28% compared to the previous day’s closing price.

The market capitalisation of the company stands at Rs 5,551 crore. Additionally, the stock has delivered an impressive return of over 400% in the past year.

In terms of ownership, the Promoter holds 39.42%, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 2.83% and 5.59% respectively. The remaining 47.37% is held by public investors, as per the most recent update.

Stock Price Chart (Daily)

Business Overview

Patel Engineering Ltd, a company with a 74-year history established in 1949, holds a robust position in tunnels and underground works for hydroelectric and dam projects. The Company maintains a consistent track record in successfully executing projects both domestically and internationally. PEL has accomplished over 85 dams, and 40 hydroelectric projects, and constructed more than 300 km of tunnels for clients, predominantly central Public Sector Undertakings (PSUs) or state government organisations.

Investors must keep this stock on their radar.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.