Vijay Kedia stock engaged in the construction and development of dams, bridges, industrial structures, and other heavy civil engineering and construction jumped 7 percent in the day’s trade after its JV company received a work order worth Rs. 317.60 Crores.
Price Action
With a market capitalization of Rs. 4,632 Crores, the shares of Patel Engineering Limited were trading at Rs. 54.85 per equity share, up 3 percent from its previous day’s close price of Rs. 53.51.
What Happened
Patel Engineering Limited along with its JV Partner has received a new work order from the Office of the Executive Engineer, Government of Maharashtra for consideration of Rs. 317.60 Crores. Patel Engineering Limited’s share in this project is 35 percent i.e. Rs. 111.16 Crores.
The scope of work involves the Construction of water lifting arrangement work for LIS 1 to 12 of the first stage from submergence of the Jigaon project including the approach channel, Rising Main, Pumping Machinery, Switchyard, and all allied works of Civil, Mechanical, Electrical component.
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About the Company
Patel Engineering Limited is a heavy civil engineering and construction company engaged in the business of construction and development of dams, bridges, industrial structures, engineering of irrigation projects, water supply, tunnels, and many more. It has a pan India presence with a strong work order book of Rs. 18,663 Crores.
As of Q4FY24, it generated 47 percent of its Revenue from Hydro Projects, 30 percent from Irrigation Projects, 9 percent from Tunnels Projects, 3 percent from Road Projects, and 11 percent from others.
It has a strong client base with well-known players like NHAI, NHPC, SJVN, Ircon International, RVNL, CIDCO, Municipal Corporation of Mumbai and many others.
Ace Investor
Ace Investor Vijay Kishanlal Kedial holds a 1.42 percent stake in the company consisting of 1.2 Crore equity shares through his firm Kedia Securities Private Limited. He made a fresh entry into the company in March 2023 by purchasing a 1.29 percent stake in the company consisting of 1 Crore equity shares.
Financials and Ratios
Its Revenue from operations grew by 11.46 percent from Rs. 1,205 Crores in Q4FY23 to Rs. 1,343 Crores in Q4FY24, accompanied by profits of Rs. 82 Crores to Rs. 140 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 7.34 percent, and a Return on capital employed (ROCE) of 13.9 percent. It has reported a debt-to-equity ratio of 0.61.
Written by: Bharath K.S
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