Stock in Focus: Infrastructure company Patel Engineering Ltd has received two Letters of Intent (LoIs) i.e. orders worth a total of ₹798.19 crore. These orders have been placed by Saidax Engineers and Infrastructure Pvt Ltd. These are for coal digging and transportation projects in Chhattisgarh.
This work will be done at Jhiria West Open Cast Project (OCP) located in Hasdev area of Bilaspur. This is a project of South Eastern Coalfields Ltd (SECL). According to the company, the price of the project is quoted excluding tax. The duration of this contract is 9 years.
What work is included in the contract?
According to Patel Engineering, this project includes many important works. Such as overburden removal, re-handling, coal cutting from surface miners, loading and transportation of coal. Additionally, this will include the hiring, supply and maintenance of necessary plant, equipment and manpower.
What did the MD of the company say?
Kavita Shirwaikar, Managing Director, Patel Engineering, said that this new project further strengthens the company’s ability to undertake large-scale infrastructure work. He said the company has already bid on the tender pipeline worth ₹34,000 crore. Apart from this, new opportunities worth ₹18,000 crore are also expected to come up for bidding by the end of this financial year.
Status of Patel Engineering shares
Shares of Patel Engineering closed 4.4% higher in Wednesday’s trading session. The stock has fallen 9.99% in 1 month. It has fallen 20.69% in the last 6 months. It has fallen 35% in 1 year. The market cap of the company is Rs 2.70 thousand crore.
What is the business of Patel Engineering?
Patel Engineering is a 76-year-old infrastructure company, established in 1949. The company has vast experience in hydropower, tunneling and irrigation projects. Till now it has completed more than 85 dams, 40 hydroelectric projects and more than 300 km of tunneling work.
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