Shares of this multibagger stock associated with the ‘civil construction’ industry jumped more than 3 percent in Monday’s trading session after the company successfully received an order worth Rs 825 crores for civil & mechanical construction works in Madhya Pradesh.
With a market capitalization of Rs 7,080.23 crores, the stocks of Power Mech Projects Limited opened their trading hour on Monday at Rs 4,383.70 and currently trade at Rs 4,480.85, gaining around 3.30 percent as compared to the previous closing levels of Rs 4,337.65 apiece.
Such bullish stock price movements are observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has secured an order worth Rs 825 crores from “Mahan Energen Limited”.
The order pertains to the civil and construction works for 2×800 MW (Phase-II) Mahan Ultra Supercritical Thermal Power Project based in Madhya Pradesh. The order is to be executed in various packages over a period of 22 to 33 months.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of around 108 percent to its investors, viz, if someone had invested Rs 1 lakh a year ago, it would have converted to Rs 2.08 lakhs.
During the recent financial quarters, the company’s prime indicators of business, i.e., operating revenues as well as after-tax profits, rose in numbers with the former jumping from Rs 865.13 crores during Q1FY23-24 to Rs 932.49 crores during Q2FY23-24, and, the latter, during the same period, increasing from Rs 50.59 crores to Rs 53.72 crores.
On an annual basis, the company’s ratios have been favourable with the return on equity (RoE) increasing from 14.22 percent during FY21-22 to 17.88 percent during FY22-23, and the return on capital employed (RoCE), too, rose from 17.7 percent to 22.25 percent keeping the timeframe the same.
As per the recent presentations, the company’s total order book, till now in FY23-24, stands at Rs 32,237 crores with the concentration of orders (94.4 percent) from the followed by Civil & Other Works (2.9 percent).
Power Mech Projects Limited is an engineering and construction company based in India that operates in two broad business segments, viz, construction and maintenance activities. The group provides services pertaining to the erection, testing, and commissioning of boilers, generators, turbines, and other civil works.
Written by Amit Madnani
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