Shares of this Vijay Kedia Stock hit the 5 percent upper circuit on Friday after the company was declared as the lowest bidder for an irrigation project.
With a market capitalization of Rs 4,288.93 crores, the stocks of Patel Engineering Limited started their trading session at Rs 55.44 and currently are locked in the 5 percent upper circuit which was recorded at the same price.
The company, in a regulatory filing with the Bombay Stock Exchange (BSE) dated 14th September 2023, announced that Patel Engineering Limited, along with its Joint Venture partner, has been declared the lowest (L1) bidder for an irrigation project of Rs 249.96 crores from ‘Maharashtra Krishna Valley Development Corporation’.
The project pertains to the construction of a Pipeline Distribution network for the Nira Deoghar Right Bank Main Canal. The project is estimated to be executed within a period of 30 months. Patel Engineering Limited’s share in the contract is Rs 99.98 crores.
Keeping a purview of just six months, the company’s stock has proven to deliver multibagger returns of 283 percent to its stakeholders, i.e. if someone had invested Rs 1 Lakh into the company’s stock, it would have converted to Rs 3.83 Lakhs within a period of six months.
Mr. Vijay Kedia, one of India’s well-known ace investors, has invested in the company’s stocks. He took an entry into the stock recently in the month of March 2023 and, as per the latest quarter data for the June 2023 quarter, he holds 1.30 crore equity shares of the company equating to a 1.68 percent stake.
During the recent financial years, the company’s basic business parameters such as the operating revenues as well as after-tax profits have drastically increased.
The operating revenues of the company rose from Rs 3,397.45 crores during FY21-22 to Rs 4,027.57 crores during FY22-23, and, the after-tax profit figures have more than doubled from Rs 68.88 crores to Rs 178.8 crores keeping the timeframe the same.
As per the shareholding pattern data available for the quarter ending June 2023, the company’s Promoters hold a 39.41 percent stake, and, the Foreign Institutional Investors (FIIs) hold a 2.38 percent stake in the company.
Patel Engineering Limited is a construction company undertaking engineering as well as civil construction projects. The company is involved in segments including real estate and engineering procurement. It undertakes projects in the infrastructure sector including dams, highways, tunnels, etc.
Written by Amit Madnani
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The post Multibagger Vijay Kedia stock hits 5% upper circuit after securing an order worth ₹ 249.96 Cr for irrigation project appeared first on Trade Brains.
