Shares of Patel Engineering (PEL) traded marginally lower in early trade on February 18, despite the company being declared the lowest bidder (L1) for a project worth ₹1,090.45 crore.
At 9:23, shares of Patel Engineering fell 0.31%, down by ₹0.14, and traded at ₹44.38 on the BSE.
The contract has been awarded by the Maharashtra Krishna Valley Development Corporation, Pune, for laying of a pipeline distribution network from Km 87 up to Km 135 of the Nira Deoghar Right Bank Main Canal.
The project location is in Kalaj village, Phaltan taluka, District of Satara, Maharashtra, and its deadline is 36 months.
Patel Engineering will perform the job under a Joint Venture (JV) with its 20% equity share in the JV.
Scope of Work
The contract involves:
- Excavation & refilling for pipe trenches
- Laying & jointing of pipelines
- Installation of valves, chambers & outlets
- Testing of pipelines
- Operations, repair & maintenance for 5 years after project completion
Stock Performance
- 52-week high: ₹74.99 (February 27, 2024)
- 52-week low: ₹42.51 (February 12, 2025)
- The stock is currently 40.82% below its 52-week high and 4.4% above its 52-week low.
- Patel Engineering’s share price has declined over 30% in the last year.
Despite securing a significant project, the stock remained under pressure, indicating that investors may await further clarity on execution and profitability.
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Source: Moneycontrol.
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