Investors in Patel Engineering Ltd have witnessed an astounding surge in returns, with the stock delivering over 400% gains in the past year. This remarkable performance is further bolstered by positive indicators such as improving debtor days and increasing interest from Foreign Institutional Investors (FIIs). As the company’s order book remains robust and diversified, coupled with encouraging quarterly results, investors may find themselves drawn to Patel Engineering Ltd as a potential investment opportunity.
Weekly Stock Performance
Examining the weekly chart of Patel Engineering Ltd reveals a promising trend.
After a period of consolidation, the stock has exhibited significant momentum, nearing resistance levels around 80 rupees per share. This upward trajectory is reflective of the company’s strong performance and investor confidence, contributing to the impressive returns observed over the past year.
Order Book Strength
Patel Engineering Ltd boasts a formidable order book, standing at 20,000 crores as of August 2023. A breakdown of the orders indicates a well-diversified portfolio, with approximately 54% of projects sourced from Public Sector Undertakings (PSUs), around 26% from State governments, and the remainder from international clients. The company’s expertise spans various sectors, including hydroelectric, irrigation, tunnel construction, roads, and other heavy civil engineering projects, ensuring a stable revenue stream and growth prospects.
Quarterly Results FY2023
In the second quarter of the fiscal year 2023-2024, Patel Engineering Ltd demonstrated robust financial performance. The company recorded a notable 21.34% increase in revenue compared to the same period last year, reaching ₹1,046.10 crore. Additionally, net profits surged by 62.33%, totaling ₹37.66 crore. Although there was a slight decline in revenue and net profits on a quarterly basis, the overall profitability and net profit margins remained healthy, indicating resilience amidst market fluctuations.
About the Company
Patel Engineering Ltd is a prominent player in the construction industry, specializing in a wide array of heavy civil engineering projects. From dams and bridges to tunnels and roads, the company has established itself as a reliable partner in executing complex infrastructure projects. With a focus on hydro, irrigation, water supply, urban infrastructure, and transportation, Patel Engineering Ltd continues to contribute significantly to the nation’s development agenda.
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