Multibagger smallcap stock, which has risen 220% this year, hits 5% upper circuit. Here's why
Patel Engineering were locked in a 5% upper circuit in intraday trade on Monday after the company bagged an order, along with a JV partner, worth over Rs 3,600 crore.
In the total order value, the company's share comes to about Rs 1,818 crore.
The received letter of award is for the Dibang multipurpose project for the construction of civil works for Lot-4 from NHPC, which was declared as L1 earlier.
The project will include the construction of head race tunnels including intake, pressure shafts, penstocks, powerhouse and transformer cavern, tailrace tunnels, pothead yard, adits, etc. for the Dibang multipurpose project 2880 MW (12 X 240 MW).
The time period for the completion of the project is about 86 months, according to an exchange filing.
Patel Engineering, over the years, has evolved as a construction company specialising in the hydropower generation and irrigation segments.
The company is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures and other kinds of heavy civil engineering works and has executed a variety of infrastructure projects in the hydropower, irrigation and water supply, urban infrastructure and transportation segments primarily as civil contractors.
It has a presence in various technology-intensive areas like hydro, irrigation and water supply, urban infrastructure, and transport especially in tunnels and underground works for hydroelectric and transportation projects.
The smallcap company, with a market capitalisation of just Rs 4,400 crore, is majority owned by public shareholders, where Vijay Kedia has a stake of 1.68%, at the end of the June quarter.
Public sector lender Bank of Baroda also owns a 2.66% stake in the company. Meanwhile, promoters
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