Stock to buy: Anand Rathi recommends Vijay Kedia-backed Patel Engineering as its pick for the month
₹59.74 apiece on the BSE on Friday. The infrastructure and construction services company Patel Engineering is a multibagger stock that has given more than 177% returns in the past one year and over 367% returns in three years. On the technical front, Patel Engineering shares have recently undergone a notable decline and is currently trading near the ₹58 mark, closely tracking its 200-day Exponential Moving Average (DEMA).
Also Read: Stocks to buy: Rajesh Palviya of Axis Securities recommends these three today “Additionally, the daily stochastic indicator is inside the oversold zone, indicating a potentially favorable opportunity for investors. In light of these developments, we recommend traders and investors to contemplate entering long positions within the ₹56-58 range," Anand Rathi said. The brokerage firm’s suggested Patel Engineering share price target for this trade is ₹66, aiming to capture potential gains from the expected upward movement.
The target price implies an upside of more than 14% from Thursday’s closing price. “To mitigate risks, we advise setting a stop-loss at ₹52.5, based on daily closing prices, ensuring prudent risk management throughout the trade,"Anand Rathi Research Team said. Ace investor Vijay Kedia holds 1.42% stake in Patel Engineering as of quarter ended March 31, 2024, as per the latest shareholding pattern of the company.
Kedia’s stake in the company has dropped down from 1.68% in the December quarter. Also Read: Breakout stocks: Sumeet Bagadia recommends five stocks to buy today — May 3 Patel Engineering reported revenue from operations of ₹1,052 crore in the December quarter, registering a growth of 13.23% YoY. The company’s net profit in Q3FY24 jumped to ₹43 crore, marking a
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