Patel Engineering stock price zooms 7% as JV bags project worth Rs 318 cr

The uptick in the share price came after Patel Engineering announced that the Office of the Executive Engineer, Govt Maharashtra has awarded the company, along with its JV, a Rs 317.60 crore contract.

Patel Engineering stock rallies: Shares of Patel Engineering surged as much as 6.98 per cent to hit an intraday high of Rs 57.25 per share on Tuesday, August 6, 2024. 

However, at 10:26 AM, shares of the company were trading 2.13 per cent higher at Rs 54.65 per share. In comparison, BSE Sensex was trading 0.84 per cent higher at 79,419.59 levels. 

The uptick in the share price came after Patel Engineering announced that the Office of the Executive Engineer, Government of Maharashtra has awarded Patel Engineering Limited (PEL), along with its JV Partner, a Rs 317.60 crore contract.

The contract involves the construction of water lifting arrangement work for LIS 1 to 12 of first stage from submergence of Jigaon project including approach channel, rising main, pumping machinery, switchyard and all allied works of civil, mechanical, electrical component, the company said in a statement. 

The project is to be completed in 24 months, Patel Engineering said. 

The project is located in Maharashtra and will be executed in a Joint Venture, of which PEL’s share is 35 per cent. 

“We are thrilled to announce that the company has been awarded this significant irrigation project by the Office of the Executive Engineer, Government of Maharashtra. This undertaking not only underscores our technical capabilities but also reinforces our unwavering commitment to advancing critical infrastructure. We look forward to collaborating with the Government of Maharashtra and our partners to ensure the project's successful and timely completion, which will be instrumental in boosting agricultural productivity and enhancing water management in the region,” said Kavita Shirvaikar, Acting Managing Director, Patel Engineering Limited.

Established in 1949, Patel Engineering boasts a strong presence in hydropower, irrigation, tunnels and underground works for hydroelectric and dam projects. 

The company has a consistent track record in execution of projects in the domestic and international arena. It has completed over 85 dams, 40 hydroelectric projects and more than 300 km of tunnelling for clients which are mostly central PSUs or state government organisations.

The market capitalisation of Patel Engineering is Rs 4,632.25 crore, according to Bombay Stock Exchange (BSE). It falls under the BSE SmallCap category.