1:1 Bonus Issue: Power Infra Company Secures Rs 510 Crore Order from Adani Power for 2x800 MW Raipur Phase-II Ultra Supercritical Thermal Power Project

The company’s shares have delivered an impressive return of over 530 per cent in the past 3 years.

This Small-Cap power infra company has secured an order valued at Rs 510 crores (excluding GST) from Adani Power Limited. The order pertains to executing mechanical construction works for the 2x800 MW Raipur Phase-II Ultra Supercritical Thermal Power Project located in Raikheda village, Raipur District, Chhattisgarh - 493225. The contract is scheduled to be completed within 34 months from the specified erection start date.

Power Mech Projects established in 1999, is an engineering and construction firm engaged in the erection, testing, and commissioning (ETC) of boilers, turbines, generators, and balance of plant (BOP), as well as civil works and operation and maintenance (O&M). It handles ultra-mega power projects, supercritical thermal power projects, and subcritical power projects.

Currently, the shares of Power Mech Projects are trading at around Rs 2844.50 per share on the BSE. The company’s current market capitalization stands at Rs 8,952 crore. Additionally, the company’s shares have delivered multibagger a return of over 530 per cent in the past 3 years.

As per the Quarterly Results, in the Q2 FY25, Power Mech Projects recorded a revenue of Rs 1035 crore compared to Rs 932 crore. The operating profit stood at Rs 123 crore. The net profit stood at Rs 70 crore compared to a profit of Rs 51 crore. Looking at the annual performance, the company generated a revenue of Rs 4207 crore in FY24. The operating profit for FY24 was Rs 493 crore with a net profit of Rs 248 crore compared to a net profit of Rs 207 crore in FY23.

The small-cap power infra company's board had announced bonus shares in a 1:1 ratio, meaning shareholders received one bonus share for every fully paid-up equity share of Rs 10 each they held.

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Investors must keep this stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.