Ace investor Vijay Kedia's portfolio smallcap stock Patel Engineering is one of the penny stocks that has delivered multibagger returns so far this year. Patel Engineering is an integrated infrastructure and construction services company in India, encompassing all sectors of the infrastructure industry from dams, tunnels, micro-runnels, hydroelectric projects, irrigation projects, highways, roads, bridges, railways, refineries to real estates, and townships.
Patel Engineering share price has zoomed from Rs 17 in January 2023 to Rs 56 on September 4, 2023. Vijay Kedia holds 1,30,00,000 or 1.3 crore shares or 1.68% stake in Patel Engineering as of June 2023. As per the latest corporate shareholdings filed, Vijay Kedia holds Patel Engineering shares worth Rs 73.6 crore.
Patel Engineering stock has delivered bumper returns to investors so far this year. The stock has surged more than 200% in the year-to-date (YTD) time. In the last one year, the multibagger stock has doubled investors' money by logging gains of nearly 130%. On Monday, Patel Engineering's shares jumped around 1% to hit an intraday high of Rs 57.95 apiece.
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In terms of technicals, the relative strength index (RSI) of the stock stands at 62.7, signalling the stock is neither oversold nor overbought. Patel Engineering has a one-year beta of 1.52, indicating very high volatility during the period. The shares are trading higher than the 20-day, 50-day, 100-day, 200-day moving averages.
According to Trendlyne data, Patel Engineering stock has a healthy debt-to-equity ratio of 0.6, which implies that its assets are financed mainly through equity. Its price-to-earning (PE) ratio is 23.5, lower than its sector PE ratio of 50.8.
Patel Engineering's Return on Equity (ROE) for the last financial year was 6.4%, less than 10% indicating an inefficient use of shareholder's capital to generate profit, according to Trendlyne data. The stock price rose 113% and outperformed its sector by 66% in the last year.
Last month, the company in a joint venture was declared the lowest bidder (L1) for an urban infrastructure development project of Rs 1,275.30 crore from Madhya Pradesh Jal Nigam. The company is a 50% or Rs 1,818.56 crore partner in the JV. The company did not name its partner in the 50: 50 JV. Patel Engineering along with the JV Partner received a letter of award for the Dibang Multipurpose Project for the construction of civil works for Lot-4 from NHPC, which was declared as L1 earlier worth Rs 3,637.12 crore.
On August 30, 2023, Patel Engineerings announced that it would participate in the Analyst/investor meeting on September 5, 2023, from 2 pm onwards with Company/Institution/Analysts/Organization including Tata Mutual Fund, ICICI Pru MF, Mirae Asset Mutual Fund, Alchemy Capital Management, Habrok, JM Financial Mutual Fund, White Oak AMC, Seraphic Management & Advisory, Helios Capital Management, 360 One AMC, Motilal Oswal AMC, UTI Mutual Fund, InvesQ Investment Advisor, Nippon India Mutual Fund, etc in a physical form.
Patel Engineering has a market cap of over Rs 4,114 crore. According to the Quarterly Results, the net sales increased by 24.20% to Rs 1,119 crore and net profit increased by 16.22% to Rs 43 crore in Q1FY24 compared to Q1FY23. According to the annual results, the net sales increased by 24.32% to Rs 4,202 crore and net profit increased by 154.16% to Rs 183 crore in FY23 compared to FY22. The company has over Rs 20,000 crore worth of projects in its order book as of June 30, 2023.
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