Power Mech Projects bags Rs 644.91 crore order from RVNL and NUPPL

Shares of Power Mech Projects Limited gained about 3% today, hitting a fresh 52-week high. The stock has witnessed heavy buying activity from investors. Power Mech Projects Limited has received multiple new orders worth Rs. 644.91 crores. The company’s first order secured is a major contract worth Rs 381.34 crore from Rail Vikas Nigam Limited (RVNL) for the construction of the Yavatmal-Nanded new railway line in Maharashtra. This project involves building road beds, bridges, minor bridges, railway over/under bridges, station buildings, staff quarters, and other essential infrastructure along the 46-kilometer stretch from KM 207 to KM 253.

Securing this project marks a substantial achievement for Power Mech, bolstering its presence in the crucial railway infrastructure development sector.

The second order valued at Rs. 263.57 crores, is from Neyveli Uttar Pradesh Power Limited (NUPPL) for comprehensive O&M service of 3×660 MW Ghattampur Thermal Power Project.

Financial Performance

In Q2FY24, the company posted a 20.89% increase in its consolidated revenue which stood at Rs 932.49 crore compared to Rs 771.37 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 117.78 crore, while the PAT of the company stood at Rs 53.72 crore, from Rs 42.99 crore last year in the same quarter.

The company has a healthy order book of around Rs. 53,500 crore and is targeting an order inflow of Rs. 10,000 crore in FY2023-24, focusing on power projects, O&M, water projects, railways, and metros.

Business Overview

Power Mech Projects Limited, incorporated in 1999, is an engineering and construction company providing integrated service in the erection, testing, and commissioning (ETC) of boilers, turbines, and generators and balance of plant (BOP), civil works and operation and maintenance (O&M). The company undertakes ultra mega power projects, super critical thermal power projects, and sub-critical power projects.

Stock Price Movement

Today, the stock opened at Rs 5,050.10, with a high and low of Rs 5,121.95 and Rs 4,988.45, respectively. The stock is currently trading at Rs 5,087, which increased by 3.02%. The stock has a 52-week high of Rs 5121.95 and a 52-week low of Rs 1,571.20. The company has an ROCE of 22.2% and an ROE of 17.9%, with a market capitalisation of Rs 8,029 crore.

In the upcoming interim budget, the government is expected to increase its spending on the infrastructure sector by 10-15% and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.