Rs 57,053 crore order book: Heavy buying multibagger civil construction stock; Company bags nuclear power plant order worth Rs 563.23 crore from BHEL

The stock gave multibagger returns of 465 per cent in just 2 years and a whopping 640 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Power Mech Projects Limited (PMPL) gained 5.72 per cent to Rs 5,184.95 per share from its previous closing of Rs 4,904.55. The stock’s intraday high was Rs 5,379.95 and its intraday low was Rs 4,730. The shares of the company saw a spurt in volume by more than 9 times in BSE.  

Earlier, PMPL secured its first construction project in the critical nuclear power sector. The company has been awarded a significant order valued at Rs 563.23 Crores from BHEL - Power Sector Southern Region for civil, structural, and architectural works of turbine island package of 2 x 700 MWe, PHWR, Kaiga Atomic Power Project (Units 5 and 6) in Uttar Kannada Dt., Karnataka. This exciting opportunity represents a significant step forward for PMPL's diversification of its existing capability into a new sector and the company's commitment to supporting the country's energy infrastructure.

The scope of work includes several segments covering civil, electrical, and structural works like TG building, Foundation for all equipment, chemical lab, Storage tanks, Peripheral drains, sewage network, storm water drains, culverts, plinth protection, pipes and cable bay, condenser cooling water pipes, plumbing and sanitary works etc.

Furthermore, the company secured a significant amount of new business, including Rs 232.03 crore worth of orders for domestic projects to be completed within 14-32 months. The largest contributor is Bharat Heavy Electricals Limited (BHEL) with Rs. 122.89 crores for building a powerhouse, coal handling plant, and ash handling structures at NTPC Talcher Odisha. Jindal Steel Odisha Limited (JSOL) also awarded PMPL contracts for Rs 56.40 crores to erect structural steel for their coke oven and plate mill buildings and Rs. 52.74 crores for civil and architectural works at Yadadri TPS Unit 4 & 5.

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In addition to these, PMPL has recently been awarded multiple high-value projects including Rs. 396.25 crore for constructing an electrified railway line in Chhattisgarh, Rs. 825 crore for civil and mechanical construction of a thermal power plant in Madhya Pradesh, and Rs. 381.34 crore for building railway infrastructure elements in Maharashtra. All these projects have deadlines ranging from 22 to 36 months.

Established in 1999, Power Mech Projects Limited is an engineering and construction company offering comprehensive services for power plants, including building, testing, and maintaining boilers, turbines, and generators, as well as civil works and ongoing operations.

Their diverse portfolio encompasses various project scales, from ultra-mega to subcritical power plants, and their expertise extends across eight business units, including industrial services, construction, overseas operations, electrical systems, infrastructure construction, hydropower, manufacturing, and mining. The company has a market cap of over Rs 8,000 crore and as of March 31, 2023, the company’s order book stands at Rs 57,053 crore.

The stock gave multibagger returns of 465 per cent in just 2 years and a whopping 640 per cent in 3 years. Investors should keep an eye on this Small-Cap civil construction company’s stock.

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