The shares of the Infrastructure and Construction services provider gained up to 3 percent after the company in a joint venture, declared a lower bidder for a project of Rs 525.36 crore.
With a market capitalization of Rs 5,477.98 crore, the shares of Patel Engineering Ltd closed at Rs 70.81 per share, decreased around 1.03 percent as compared to the previous closing of Rs 71.55 apiece.
According to the company filing, Patel Engineering Ltd and its joint venture, declared lower bidders for a project of Rs 525.36 crore from the Irrigation & CAD Department, Government of Telangana for the works involving the Construction of the RCC Protection Wall along River Munneru on the right and left flanks between Polepally and Prakashnagar in Khammam City, Khammam District.
Furthermore, the project is in the state of Telangana, it will be executed in a joint venture, of which PEL’s share in a JV is 51 percent and the project is scheduled to be completed in 24 months.
Looking into the company’s performance, Patel Engineering Ltd’s revenue increased by 11 percent from Rs 955 Crore in Q3FY23 to Rs 1,061 Crore in Q3FY24. During the same period, net profits increased by 187 percent from Rs 24 crore to Rs 69 crore.
The company’s projects include the Sela bi-lane road tunnel, located 13800 feet above sea level, and the 25-kilometer East-West Corridor in Assam. PEL is renowned for its dependability, capacity, and originality in high-altitude roadway construction, including highways, bridges, and roads.
Ace investor Vijay Kishanlal Kedia holds 1,30,00,000 shares through its firm Kedia Securities Private Limited, which is equivalent to 1.68 percent of the company as of the December quarter of 2023.
The stock gave a 27.80 percent return in six months and a 411.19 percent return in a year. If an investor invests Rs 1 lakh in the company, it would be worth Rs 5.11 Lakh in a year.
Patel Engineering Ltd constructs dams, bridges, tunnels, roads, piling works, industrial structures, and other big civil engineering projects in areas such as hydro, irrigation water supply, urban infrastructure, and transportation.
Written by:- Abhishek Singh
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