Small Cap stock engaged in the business of erection, testing, commissioning, operation, and maintenance of boilers, power plants, sub-critical power projects, and many more jumped 17 percent in the day’s trade following bonus issue of 1:1 and fixing record date.
Price Action
With a market capitalization of Rs. 10,907 Crores, the shares of Power Mech Projects Limited were trading at Rs. 6,942 per equity share, up 9 percent from its previous day’s close price of Rs. 6,384.90. It has delivered a return of 74 percent in a year.
Bonus Issue
The Board of Directors of Power Mech Projects Limited has considered issuing bonus equity shares of the company in the ratio of 1:1 where one equity share will be issued for every one equity share held by the shareholders of the company as on the record date following the approval in the AGM to be held on September 27, 2024.
In Addition, September 28, 2024, is fixed as the record date to determine the eligibility of shareholders of the company who are entitled to the receipt of Bonus shares and dividends.
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About the Company
Power Mech Projects Limited is an engineering and construction company engaged in the business of erection, testing, commissioning, operation, and maintenance of boilers, power plants, sub-critical power projects, infra projects, and many more across sectors like Mining, roads, water, Industrial plants, and others.
Power Mech Projects Limited has a strong order book worth Rs. 57,793 Crores, and its segment breakdown consists of Mining works 68.7 percent, Civil & Other works 14.2 percent, Erection works 11.3 percent, O&M 4.2 percent, and Electrical works 1.6 percent
It has a good client base with well-known players like NHAI, BHEL, ONGC, JSPL, Siemens, Tata Power, Adani, Dangote, CESC, Vedanta, Coal India, RVNL, Rites, Mitsubishi, and many others.
In Q1FY25 the Mutual Fund Corporations increased their holding in Power Mech Projects Limited from 11.94 percent to 15.65 percent by purchasing an additional 3.71 percent stake.
Financials and Ratios
Its revenue from operations grew by 16.44 percent from Rs. 865 Crores in Q1FY24 to Rs. 1,007 Crores in FY24, accompanied by profits of Rs. 51 Crores to Rs. 62 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.9 percent, and a return on capital employed (ROCE) of 23.9 percent. It has reported a debt-to-equity ratio of 0.22.
Written by: Bharath K.S
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