Patel Engineering Ltd.'s share price traded higher during early trade on Wednesday after the company and its joint venture partner were declared the lowest bidder for a large irrigation project in Maharashtra.
Pune-based Maharashtra Krishna Valley Development Corp. declared Patel Engineering and its JV partner, as L1 for a Rs 1,090.45-crore contract for the work involving the construction of pipe line distribution network for Nira Deoghar Right Bank Main Canal and its distributaries. The project is to be completed in a period of 36 months, according to a company statement on Tuesday.
The project is situated in the Satara district. Patel Engineering's share in the JV company is 20%.
"The scope of works includes construction of Pipe Distribution Network involving excavation & refilling for pipe trenches, structures providing, supplying, jointing, lowering, laying of pipes, various types of valves, chambers and outlets, testing Pipeline with all valves, outlets, etc. with an Operations, Repairs and Maintenance period for 5 years after completion of works," the statement said.
The company's order book as of the end of third quarter stood at Rs 16,396 crore.
Patel Engineering Share Price Up
The Patel Engineering stock rose as much as 3.7% to Rs 44.49 apiece.
The Patel Engineering stock rose as much as 3.7% to Rs 44.49 apiece. It was trading 3.3% higher at Rs 44.32 apiece, as of 9:42 a.m. This compares to a 0.17% decline in the NSE Nifty 50 Index.
The scrip has fallen 35% in the last 12 months. The relative strength index was at 39.
The two analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 50%.
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