Despite the stock market being in a selling phase, investors have shown significant interest in Patel Engineering Limited, a civil construction company.
This surge in interest came after the company announced a new deal, leading to increased demand for its shares as well as those of IRCON International.
Patel Engineering Stock Performance
On Thursday, Patel Engineering’s stock saw a rise of over 5%, going from Rs 54 to Rs 58.02. Earlier this year, on February 6, 2024, the stock reached its 52-week high of Rs 79.
In contrast, its lowest point in the last 52 weeks was Rs 41.99, recorded in October 2023.
For IRCON International, its stock was at Rs 231.35, and on July 15, 2024, it hit its 52-week high of Rs 351.65.
Details of the Deal with IRCON
According to an exchange filing, IRCON International Limited signed a Memorandum of Understanding (MoU) with Patel Engineering Limited on October 16, 2024.
The agreement aims to collaborate on various infrastructure projects, both in India and internationally, with the goal of pursuing mutually beneficial business opportunities.
Shareholding and Quarterly Results of IRCON
In recent news, mutual funds have reduced their holdings in IRCON during the September quarter.
As of September 30, mutual fund holdings stood at 0.31%, down from 1.67% at the end of June. Quant Active Fund was among those who reduced their stake.
For the quarter, IRCON International reported a 19.5% rise in profit to Rs 224 crore, despite a 17% decline in revenue to Rs 2,287.1 crore.
At the operating level, EBITDA fell by 2% to Rs 250.6 crore, though its EBITDA margin improved by 200 basis points to 11%.