Patel Engineering Ltd shares were locked at the 5 percent upper circuit on Tuesday’s session at a price of ₹ 28.45. The company has a market capitalization of ₹ 2,200 crores.
The stock price increased substantially when the company received a Letter of Acceptance (LOA) from City and Industrial Development Corporation (CIDCO) for the construction of a 6.70 km long treated water tunnel in Maharashtra. For a ₹ 519.50 crore project.
The stock has shown significant buying activity in the past 3 months, with the stock surging more than 85 percent from ₹17.80 to current levels and in the previous year, the stock gained 61.92 percent from ₹ 17.57 to current levels.
As of the March 2023 quarter, Ashish Kumar Ahuja has a 1.59 percent stake in the company, while Kedia Securities Private Limited has a 1.29 percent holding.
Patel Engineering Ltd is engaged in the construction of dams, bridges, tunnels, and other kinds of heavy civil engineering works in areas like hydro, irrigation, and urban infrastructure. The Company has a domestic presence across 17 Indian states and an international presence in Nepal.
In Q4FY23, the company’s net sales climbed 16 percent year on year to ₹1,298 crores. The company’s EBITDA was ₹176 crore, up 13.4 percent from the March 2022 quarter. The company’s net profit scaled by 148 percent year on year to ₹ 82 crore.
Revenues increased substantially year on year, rising from ₹ 3,380 crores in FY 21-22 to ₹ 4,201 crores in FY 22-23. Within the duration specified, the Net profit increased from ₹ 68 crores to ₹ 178 crores.
In May 2023, the company executed a share purchase agreement with Authum Investment and Infrastructure Limited to sell and transfer 41.01% of its equity holding in its subsidiary, Michigan Engineers Private Limited (MEPL), out of a total stake of 51%.
As per the shareholding pattern, promoters of the company hold a 39.41 percent stake, and domestic institutional investor(DIIs) holds a 9.2 percent stake in the company for FY 22-23.
Written by Omkar C
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