The shares of Power Mech Projects Ltd surged to a record high of ₹ 2398.00 apiece on the BSE during early trades on Wednesday. The stock has outperformed the benchmark index this year (YTD) and has given multibagger returns. 

Power Mech Projects is an engineering and construction company providing integrated services 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). 

In October this year, the company’s joint venture (JV) with RITES received an order worth over ₹ 499.41 crores from the Bangalore Metro Rail Corporation Ltd (BMRCL). According to a regulatory filing, the order is for the construction of a Depot cum workshop at Challaghatta in Reach-2 Extension of the Bangalore Metro Rail Project, Phase-2. In addition, it has 112 ongoing projects including 44 AMCs and 11 overseas projects as of November 2022. 

The company said that it is focusing on expansion to new areas in railways, water projects, roads, coal mining, electrical, steel plant works, material handling, oil & gas sector across the value chain, cross-country pipelines, urban infrastructure projects, etc. In addition, it is also focusing on heavy steel fabrication works with investments planned to reduce site costs and better and faster delivery. 

Its shares have rallied 147.64% in the last six months to give multibagger returns. They were available at ₹ 955.10 at the beginning of this year and reached ₹ 2398.00 levels on Wednesday. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 2.47 lakhs today. 

Similarly, in the past five years, the company gave multibagger returns of 216.46% as its share price increased from ₹ 757.75 to ₹ 2398.00. This means that if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 3.16 lakhs today! 

Written by Simran Bafna