Vijay Kedia Stock Hit 52W High On Winning Project Worth Rs 1,275.30 Cr

Small cap company Patel Engineering opened higher today on the BSE and clocked a fresh 52-week-high of Rs 58.54 apiece in early trade on August 22 after a joint venture bagged a project worth Rs 1,275.30 crore from Madhya Pradesh Jal Nigam, Govt. of Madhya Pradesh Undertaking.

Patel Engineering was declared the lowest bidder or L1 in a joint venture (JV) agreement for Rs 1,275.30 crore by the Government of Madhya Pradesh Undertaking. The project involves works like Engineering, Procurement, Construction, Testing, Commissioning, Trial Run and Operation & Maintenance for 10 Years of Narmada-Gambhir, District Ujjain & Indore Multi-Village Drinking Water Supply Scheme in a Single Package on 'Turn-key Job Basis', according to an exchange filing.

The project will be completed in 24 months, with further operations and maintenance for the entire network to be carried out for a period of 10 years. The project is located between Ujjain and Indore, Madhya Pradesh, and will be carried out through a Joint Venture in which PEL would have a 35% stake (Rs. 446.36 crore).

Mr Rupen Patel, Chairman and Managing Director, Patel Engineering Limited said, "The Narmada-Gambhir Drinking Water Supply Project would help in solving the shortage of water supply in various villages in the districts of Ujjain and Indore. The project comprises of various activities including construction of intake well cum pump house, construction of RCC approach bridge, laying of water pipelines, construction of water treatment plant, construction of RCC overhead service reservoirs at different villages, more than 50,000 house service connections as well as Design, Supply, Delivery, Erection, Testing, & Commissioning of Automation Components for Monitoring & Maintenance with GPRS Communication with all necessary accessories (SCADA) etc. We are thrilled to be part of this project in providing water supply to several households in the state of Madhya Pradesh."

On a standalone basis, the company reported net sales of Rs 1,090.70 crore in June 2023 quarter up 23.79% from Rs. 881.09 crore in June 2022 quarter. Its standalone net profit climbed 299.74% YoY to Rs. 132.07 crore in Q1FY24 from Rs. 33.04 crore in Q1FY23, while EBITDA gained 6.8% to Rs. 176.47 crore in the June 2023 quarter from Rs. 165.24 crore in the same quarter of FY23.

Patel Engineering's consolidated net sales were Rs 1,118.61 crore in the June 2023 quarter, up 14.86% from Rs. 973.91 crore in the June 2022 quarter. On a consolidated basis, the company's net profit climbed by 4.99% to Rs. 43.40 crore in Q1FY24 from Rs. 41.34 crore in Q1FY23, and EBITDA jumped by 1.63% to Rs. 188.38 crore in the June 2023 quarter from Rs. 185.35 crore in the June 2022 quarter, as per the data of MoneyControl.

During Q1FY24, the company reported promoters shareholding of 39.42%, FIIs stake of 2.38%, DIIs stake of 9.25%, public stake of 44.15% and others stake of 4.79%. According to the shareholding pattern of Patel Engineering Ltd available on BSE for the April to June 2023 quarter, ace investor Vijay Kedia held Patel Engineering stock in his portfolio. Vijay Kedia holds 1.30 crore shares of the corporation via his company Kedia Securities, accounting for 1.68 per cent of the total paid-up capital.