Patel Engineering’s stock saw a sharp move today, surging around 16% on November 27, and is currently trading near ₹38. This strong rally comes right after the company announced two major Letters of Intent (LOIs) for large-scale excavation and coal-handling works at Jhiria West OCP, Hasdeo Area, Chhattisgarh, for South Eastern Coalfields Limited (SECL).
What Triggered the Jump?
The company disclosed yesterday that it secured two LOIs worth ₹798.19 crore (excluding taxes) from Saidax Engineers and Infrastructures Pvt Ltd. The contract includes:
- Overburden removal
- Coal cutting using surface miners
- Loading & transportation of coal
- Hiring and maintenance of all equipment
- Supply of diesel
- Required manpower and project execution
This is a major addition to Patel Engineering’s infrastructure portfolio and seems to have boosted investor sentiment sharply.
Management’s Outlook
Managing Director Ms. Kavita Shirvaikar said these projects are a natural fit for the company’s core strengths and add to a robust tender pipeline of over ₹34,000 crore already under evaluation. She highlighted further potential opportunities worth:
- ₹18,000 crore expected for bidding before FY-end
- Nearly ₹1 lakh crore likely to open for bidding over the next 1–2 years
The upbeat business pipeline appears to be another factor fueling today’s strong market reaction.
Company Profile
Patel Engineering, founded in 1949, has a long track record in:
- Hydropower
- Tunneling
- Irrigation projects
The company has completed:
- 85+ dams
- 40 hydroelectric projects
- 300+ km of tunnels, primarily for central and state government clients.
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