Shares of Patel Engineering fell 5% as investors booked profits after a two-day rally

Shares of Patel Engineering fell nearly 5% on Friday to Rs. 35.58, as investors booked profits after two days of sharp rally. By the company Rs. The stock had rallied close to 20% earlier in the week following the announcement of a major coal mining and transportation contract worth Rs 798.19 crore.

Sedex Engineers and Infrastructure Pvt. The rally was initiated by two Letters of Intent (LOIs) received from Ltd. The project has been awarded by South Eastern Coalfield Limited (SECL).

According to Patel Engineering’s regulatory filing, the contract value is Rs. 798.19 crore, with a total implementation period of nine years excluding tax.

The scope of work includes removal of joint overburden, rehandling, cutting of coal using surface miners, loading and transportation of coal, as well as recruitment and maintenance of necessary machinery and equipment. It also covers supply of diesel and deployment of staff and labor required for operation.

The company clarified that the contract is purely local, involves no related-party transactions and the promoters have no interest in the awarding entity.

With this order, Patel Engineering has strengthened its foothold in large-scale infrastructure and mining projects. The deal is expected to boost its order book and strengthen its role in executing critical coal infrastructure for public sector clients like SECL.

On the technical front, the daily Relative Strength Index (RSI 14) is at 60.5. RSI is a momentum indicator used to measure whether a stock is overbought or oversold, a reading below 30 indicates an oversold condition, while a level above 70 indicates that the stock may be overbought.

(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)