Patel Engineering’s stock surged by 4.69% to Rs 59.70 on the BSE, following an upward revision in its credit rating by Infomerics Valuation and Rating. The revision boosted its long-term ratings to IVR A and short-term to IVR A2+, contributing to a market cap increase to Rs 5011.37 crore.
Shares of Patel Engineering gained nearly 5% after the rating upgrade, indicating a positive market response. This upward trajectory reflects a robust gain of 339% over three years and 167% over the past two years, highlighting its status as a multibagger stock.
The company saw significant trading volume with 13.60 lakh shares, resulting in an Rs 8.01 crore turnover on the BSE. Despite a yearly gain of 107%, the stock has experienced an 8.5% decline since the beginning of the year, with the lowest price at Rs 28.01 and the highest at Rs 79 within the last 52 weeks.
Patel Engineering’s financial health improved with a net profit of Rs 141 crore in the latest quarter, up from Rs 84.8 crore in the same quarter last year. Its revenue from operations rose to Rs 1374.4 crore, with EBITDA increasing to Rs 237.6 crore, reflecting stronger operational efficiency.
The company’s EBITDA margin expanded to 17.69% in the quarter, compared to 13.91% in the previous year, underscoring enhanced profitability. As of March 31, 2024, Patel Engineering boasted a robust order book worth Rs 18,663 crore, emphasising its capacity in civil construction and real estate activities.
