Patel Engineering share price jumps 6% on signing MoU with RVNL for hydro and other infrastructure projects

Patel Engineering share price jumped over 5% on Friday after the company signed a Memorandum of Understanding (MOU) with state-run Rail Vikas Nigam Ltd (RVNL) for jointly developing infrastructure projects. The Vijay Kedia portfolio stock Patel Engineering shares gained as much as 6.15% to ₹56.94 apiece on the BSE. RVNL share price also rose 1.6%.

According to the MoU, Patel Engineering and RVNL will collaborate on certain identified hydro and other infrastructure projects as opportunities arise. The strategic partnership is aimed at jointly executing projects in the field of hydro and other infrastructure projects both within India and internationally.

“The agreement outlines a framework for collaboration between Patel Engineering and RVNL to leverage each other’s strengths and capabilities in pursuing hydro and other infrastructure projects. Under this MOU, both parties will explore opportunities to work together in various capacities,” Patel Engineering said in BSE filing.

Patel Engineering's total order book as on 30th June 2024 stood at ₹17,791 crore and L1 of ₹111 crore.

The company reported a consolidated net profit of ₹48.17 crore in the first quarter of FY25, registering a growth of 25.81% from ₹38.39 crore in the same quarter last fiscal year. The company’s revenue from operations in Q1FY25 decreased 1.52% to ₹1,101.66 crore from ₹1,118.61 crore, year-on-year (YoY)

RVNL share price

RVNL is a multibagger railway PSU stock that has given stellar returns of more than 223% year-to-date (YTD) and over 356% in the past one year. RVNL’s market capitalization has crossed ₹1 lakh crore and since its listing in 2019, RVNL shares have delivered a staggering 30-fold returns.

At 10:30 am, Patel Engineering shares were trading 5.89% higher at ₹56.80 apiece, while RVNL shares were trading 1.17% higher at ₹586.10 apiece on the BSE. 

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