During Thursday’s trading session, the shares of one of the leading industrial services and construction companies surged nearly 1 percent to Rs. 6,681.4 on BSE, after securing an order worth Rs. 226.66 crores from Gujarat Mineral Development Corporation Limited, a Government of Gujarat Enterprise.
With a market capitalisation of Rs. 10,526.6 crores, at 02:36 p.m., the shares of Power Mech Projects Limited were trading in the green at Rs. 6,659, up by 0.6 percent, compared to its previous closing price of Rs. 6,619.25.
What’s the News:
According to 26th September regulatory filings, Power Mech Projects Limited received an order valued at Rs. 226.66 crores from Gujarat Mineral Development Corporation Limited, a Government of Gujarat Enterprise.
This order involves the operation, maintenance, and repair of the 250 MW (2X125) Power Plant and its associated equipment for power generation, as well as the transition to the 220KV switchyard and related tasks. The project is expected to be carried out over a tentative period of three years, starting from December 16, 2024.
Previous News:
On 22nd August, the company’s Board decided to issue bonus shares in the 1:1 ratio, with the record date fixed to Tuesday, October 8, 2024.
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Accordingly, 1 new fully paid-up equity share of Rs. 10 each will be issued for 1 fully paid-up equity share of Rs. 10 each held by the shareholders.
On 19th September, Power Mech Projects Limited received an order worth Rs. 865 crores for the Operation and Maintenance (O&M) of three 660 MW supercritical thermal power plants of Talwandi Sabo Power Limited, a subsidiary of Vedanta Limited, at Banawala village, Punjab.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 16.4 percent from Rs. 865 crores in Q1 FY24 to Rs. 1,007 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 51 crores to Rs. 62 crores, indicating a growth of 21.6 percent YoY.
On a year-on-year basis, the EBITDA increased from Rs. 104.7 crores in Q1 FY24 to Rs. 122.8 crores in Q1 FY25, registering a growth of 17 percent.
As of 12th August, Power Mech Projects Limited reported an order inflow of Rs. 1,746 crores. This inflow was primarily driven by Civil & other works, which accounted for 54.7 percent, followed by Operations & Maintenance (O&M) at 31.6 percent, and Erection works at 13.7 percent
During the same period, the company’s order backlog reached Rs. 57,793 crores, with Mining works making the largest contribution at 68.7 percent. Erection accounted for 11.3 percent, Civil & other works contributed 14.2 percent, O&M contributed 4.2 percent, and Electrical Works made up the remaining 1.6 percent.
The company plans to expand its O&M profile by focusing on utility thermal power plants and captive power plants, integrating its spare parts business, pursuing international operations, and increasing its presence in the non-power sector.
The management is confident of achieving revenue growth in the range of 25-30 percent for FY25 and has set a target of Rs. 11,000 crores for its order book in the same financial year.
The company’s focus will remain on industrial plants, O&M, railways, and water. Moving forward, the O&M and MDO businesses are expected to provide substantial stability in both revenues and margins.
Stock Performance
The stock has delivered positive returns of nearly 62 percent of returns in one year, as well as around 40 percent returns in the last six months. So far in 2024, the shares of Power Mech Projects have given positive returns of about 48.5 percent.
About the Company:
Incorporated in 1999, Power Mech Projects Limited is an engineering and construction company engaged in 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).
Written by Shivani Singh
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