Shares of this multibagger small-cap stock jumped around 10 percent today after it received an order from the Steel Authority of India Limited (SAIL). In the last one-month period, the scrip has gained close to 40 percent from Rs 3,365.65 to the current price level.
With a market capitalization of Rs 6,953 crores, the stocks of Power Mech Projects Limited are trading in the green today and are currently available at Rs 4,658, a gain of approximately 10 percent as compared to the previous close of Rs 4,224.55 apiece.
Year-To-Date, the company’s stock has proven to deliver multibagger returns of 132 percent to its stakeholders. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.32 Lakhs within the above-mentioned period.
Such sharp movements in the stock prices today were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), informed about bagging a Mine Development and Operation Project (MDO) worth Rs 30,438 crores from the Steel Authority of India Limited (SAIL).
The project is been awarded to a consortium of “Power Mech Projects Limited-PC Patel Infra Private Limited” pertaining to the operation and development of the Tasra Opencast Project, located in Dhanbad District, Jharkhand. The duration of the project is fixed to be 28 years (including a period of 2 years for the development).
The scope of the contract comprises the extraction of coking coal, transportation, crushing, and supply of steel-grade coking coal to SAIL.
A glance at the company’s consolidated financials leads to an observation regarding an increase in the operating revenues as well as after-tax profits YoY. The former rose from Rs 2,710 crores during FY21-22 to Rs 3,601 crores during FY22-23, and, the latter, during the same time horizon, moved from Rs 140 crores to Rs 215 crores.
According to the latest shareholding data available for the June 2023 quarter, the Promoters hold a 64.12 percent stake, and the Foreign Institutional Investors (FIIs) hold a 3.57 percent stake in the company.
Power Mech Projects Limited is a company based in India that provides construction and maintenance services such as testing, erection, and many more. The group has operations within as well as outside India, of which a majority of revenue is generated from domestic operations.
Written by Amit Madnani
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