Stock made profitable for investors despite huge fall

The last few months have proved challenging for Patel Engineering. There has been a continuous decline in the shares of this company related to infrastructure and construction sector. Since January 2024, the company’s shares have fallen by 26%. The share price closed at ₹48.83 on Friday, down 1.15%.

Big benefit for long term investors

However, despite the recent decline, positional investors have made big gains from Patel Engineering shares.

• February 2024: Shares hit high of ₹79.
  • Since then it has fallen by 38.36%.
• On investment of 2 years: The company has given a return of 209%.
• On investment of 3 years: Shareholders have got a profit of 280%.

Brokerage’s positive outlook (Target Price)

Domestic brokerage houses like IDBI Capital have maintained a ‘bullish’ view on the performance of Patel Engineering.

• The brokerage house has given ‘Buy’ rating to the stock.
• Target price: ₹76 (50% more than Friday’s closing price).
• The brokerage believes that the stock is likely to rise after the current fall.

Strong work order and growth expected

The brokerage house has expressed confidence in the company’s strong work orders, making it an attractive stock for the long term.

• Work order value: ₹173 billion.
• This is equal to the company’s revenue for the next 4 years.
• Impact in the first half: Work orders have been affected due to elections.
• Improvement in second half: The brokerage expects work orders to increase in the coming months.

What should investors do?

• In the short term: The stock may remain volatile due to the current decline.
• For long-term investments: Strong work orders and positive ratings of the brokerage make it a good choice.
• According to IDBI Capital: The target price of ₹76 indicates that the stock can give good returns in the future.