From Rs 3,524 Cr to Rs 57,915 Cr Order Book: This Company Secures Fresh Order From PSU, Trades Below Industry PE

The stock is trading at a lower valuation compared to the broader industry average.

The NSE benchmark Nifty50 index extended its losing streak for the sixth consecutive session on Tuesday, February 25, 2025, closing at 22,526, down by 27 points or 0.12 per cent. Most sectors ended the session in negative territory, with Nifty Metal and Nifty Realty leading the decline, down by 1.54 per cent and 1.31 per cent, respectively. On the other hand, Nifty Media and Nifty Auto were among the Top Gainers, closing with gains of 0.84 per cent and 0.51 per cent, respectively.

Amidst this corrective phase on D-Street, Power Mech Projects Ltd. has reported a significant development. The company, primarily engaged in providing engineering and construction services with a focus on the power and infrastructure sectors, announced in a regulatory filing that it has secured an order from PSU Bharat Heavy Electricals Limited (BHEL). The order pertains to the main supply, including design and engineering, mandatory spares, and civil works, along with erection and commissioning (E&C) for the 2 X 800 MW DVC Koderma TPS Phase-II EPC project. The contract awarded by BHEL is valued at Rs 164.63 crore.

As of December 31, 2024, the company’s order backlog stood at Rs 57,915 crore, which is 13.67 times its total revenue for FY24, recorded at Rs 4,234 crore. Notably, at the time of its IPO, the company’s order book was Rs 3,524 crore, which has now expanded significantly to Rs 57,915 crore.

From a valuation perspective, the stock is currently trading at a price-to-earnings (PE) ratio of 20.6x, whereas the industry PE average stands at 29.4x. This suggests that, based on the PE metric, the stock is trading at a lower valuation compared to the broader industry average.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.