Shares of Patel Engineering Ltd were on a roll after ace investor Vijay Kedia bought a stake in the company. Its share price surged 18.48% on Wednesday’s early trades to reach an intraday high of 17.95 apiece on the National Stock Exchange against a closing price of ₹ 15.15 apiece on Tuesday. At 12:32 PM, its shares were trading at ₹ 17.25 apiece, up 13.86%.
According to the shareholding pattern of the company, Vijay Kedia-led Kedia Securities Private Limited has bought a 1.29% stake or 1 crore shares in the company. Its name did not appear in the list of shareholders of the company in the December quarter of 2022, indicating that this might be a fresh stake.
Patel Engineering is engaged in the construction of dams, bridges, tunnels, roads, works, industrial structures and other kinds of heavy civil engineering works.
With a market capitalization of ₹ 1,116 crores, Patel Engineering is a small-cap company. It has a low return on equity of 3.06%, but an ideal debt-to-equity ratio of 0.90 apiece. Its shares were trading at a price-to-earnings ratio of 6.16 which is significantly lower than the industry average of 11.01.
The company reported a net profit of ₹ 37.84 crores in the December quarter of 2022, against ₹ 29 crores in the corresponding quarter last year, indicating an increase of 30.48%. Its revenue also increased from ₹ 877.93 crores in the December quarter to ₹ 1,036.98 crores in the March quarter, up 18.12%.
Written by Simran Bafna
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