Small Cap Stock Surges 5% As JV Bags Rs 202.30 Crore Project In Maharashtra

The shares of Patel Engineering Ltd. (PEL) on Friday touched the 5% upper circuit at Rs 55.44% after the company announced that it has declared the lowest bidder (L1) in a joint venture (JV) for an irrigation project of Rs 202.30 Crore from Maharashtra Krishna Valley Development Corporation.

Patel Engineering's share in the contract is Rs 80.92 Crore, which is 40%.

The contract work involves the Construction of a Pipe Line Distribution Network for Nira Deoghar Right Bank Main Canal Km 77 to Km 87. The project is to be completed in a period of 30 months.

The project is located in the state of Maharashtra, Village -Kapadgaon to Kalaj, Taluka - Phaltan, District - Satara. The project is to be executed in a Joint Venture.

The said project is in addition to the previous package announced yesterday received from Maharashtra Krishna Valley Development Corporation. Total combined value of the two packages is 452.26 crores and our share in these two projects is 180.90 crores, the company stated in the filing.

Patel Engineering's shares ended 5% higher at Rs 55.44% on the BSE. The stock's 52-week high is Rs 62.11 apiece and 52-week low is Rs 13.10 apiece. The market cap of the stock is Rs 4,288.93 Crore.

The stock declined 0.18% in the past 1 week and gained 10.13% in the past 1 month. It has given 94.39% robust return in 3 months and 282.87% multibagger return in 6 months. It gave 143.16% multibagger return in 1 year. The stock has given 243.28% robust return in 2 years, and 370.63% in 3 years, respectively. In 5 years, it gave 73.90% positive return.

Patel Engineering Ltd. ('PEL' or 'Company'), is a 74-year company established in the year 1949 and have a strong presence in tunnels and underground works for hydroelectric and dam projects. The Company has a consistent track record in execution of projects in domestic and international arena. PEL have completed over 85 dams, 40 hydroelectric projects and more than 300 km of tunnelling for clients which are mostly central PSUs or state government organizations.