Vijay Kedia Stock Hit 5% Upper Circuit After Securing Order of Rs. 519.50 Cr

During Wednesday's closing session, Patel Engineering, a small cap company, had a market worth of Rs 2,320.85 Cr. One of India's leading providers of infrastructure and construction services is Patel Engineering Ltd., founded in 1949. Following the company's confirmation of a Letter of Acceptance (LOA) from CIDCO, trading in Patel Engineering shares was halted on June 7 at a 5 percent upper circuit limit of Rs 30 per share.

The City and Industrial Development Corporation (CIDCO) granted Patel Engineering the Letter of Acceptance (LOA) for the building of a 6.70 km long treated water tunnel and related works between Sai Village and Vindhane Village in Raigad District, Maharashtra. Without a joint venture agreement, the Rs 519.50 Cr water tunnel project will be carried out.

Mr. Rupen Patel, Chairman & Managing Director, Patel Engineering Limited said, "We are honored to have been awarded this prestigious project and express our sincere gratitude towards all authorities and stakeholders. Patel Engineering Limited is committed to delivering exceptional infrastructure solutions that positively impact the lives of people. This project demonstrates our technical prowess and engineering skills along with excellent execution capabilities."

In Q4FY23, the company's revenue from operations increased by 14.55% to Rs. 1,192.18 crore from Rs. 1,040.78 crore in Q4FY22. With a jump of 149.05% YoY, Patel Engineering reported that its standalone net profit increased to Rs. 83.66 crore in the March 2023 quarter from Rs. 33.59 crore in the corresponding period in the previous year. From Rs. 0.71 in March 2022 to Rs. 1.59 in March 2023, Patel Eng EPS has grown.

Commenting on the technical outlook of the stock, V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today said "PATEL ENGINEERING trading at 30 today and still has potential still bullish. Expected targets in future are 35/37/40/42/45/50/55/60/65/70/75/80/85/90/95/100 maintain a strict stop loss at 14 for these targets. Price has just started taking support from it's all time low. Indicators like MACD showing bullishness and RSI value is 70 (indicating a bit high buy as of now) at daily TF. Price is trading above 200 Days EMA in daily & weekly time frame. So, it's alright to hold it more for more gains as mentioned above. Fresh Buying zone should be 28- 30 for given targets and stop loss."

A R Ramachandran, Co-founder & Trainer-Tips2trades said "Patel Engineering stock price is overbought with next resistance at 31.7. Investors should book profits at current levels and wait for a dip near support of 24 to buy for better returns."
During Q4FY23, the company reported promoters shareholding of 39.42%, FIIs stake of 2.10%, DIIs stake of 9.20%, public stake of 44.49%, and others stake of 4.79%. As per the shareholding pattern of Patel Engineering for January to March 2023 quarter ace investor Vijay Kishanlal Kedia held fresh fully paid up equity shares of 10,000,000 or 1.3% stake in the company, whereas another popular investor Ashish Kumar Ahuja held 1,23,03,916 fully paid up equity shares or 1.59% stake in the company.