Patel Engineering Shares Hit 5% Upper Circuit on Bagging Rs 519.5 Cr Project

On Tuesday, the benchmark Indian indices were trading in red with the BSE Sensex Index down by 0.24% at 62,635 and the NSE Nifty-50 Index down by 0.21% at 18,555. 

Patel Engineering Ltd, a stock in Vijay Kedia’s portfolio, experienced a notable surge as its shares hit a 5% upper circuit, reaching Rs 28.58 per share. The stock’s 52-week high stood at Rs 29.70, while its 52-week low was Rs 13.10. 

The company has been awarded the Letter of Acceptance (LOA) from City and Industrial Development Corporation (CIDCO) for the construction of a 6.70 km long treated water tunnel and associated works from Sai Village to Vindhane Village in Raigad District, Maharashtra. The water tunnel project worth Rs 519.50 crore is going to be executed without any joint venture partnership. 

Patel Engineering Ltd recently announced outstanding quarterly and annual results, showcasing a robust order book. In Q4FY23, the net sales surged by 16.77% to Rs 1,298.03 crore, while the net profit skyrocketed by 297.94% to Rs 84.36 crore, resulting in an EPS of Rs 1.56, compared to Q4FY22. 

For the full fiscal year FY23, the company’s net sales witnessed a 24.31% increase, amounting to Rs 4,201.97 crore, while the net profit soared by 181.43% to Rs 154.81 crore compared to Q4FY22. The EPS for Q4FY23 stood at Rs 3.19. As of March 31, 2023, the total order book, including L1, reached Rs 20,806.70 crore which is at an all-time high. 

Patel Engineering Ltd specializes in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other heavy civil engineering projects. Some notable projects include the Kameng Hydro Electric Project, SRSP Canal Project, Raichur Sholapur Transmission Project, Rampur Hydro Electric Project, and various High-Altitude Road projects. 

With a market capitalization of Rs 2,211 crore and a low PE of 13.66x, Patel Engineering Ltd presents an intriguing investment opportunity for investors interested in small-cap stocks.