Multibagger civil construction stock hits 20 per cent upper circuit as it receives order worth Rs 30,438 crore from Steel Authority of India Ltd!
The stock gave multibagger returns of 160 per cent in just 6 months and over 400 per cent in 1 year.
Power Mech Projects Limited (PMPL), one of the leading industrial services and construction company providing versatile and comprehensive services in the power and infrastructure sector, has been awarded a Mine Development & Operation (MOO) project, Tasra OCP located in Jharia Coal Fields, Dhanbad, Jharkhand, by Steel Authority of India Ltd for an estimated value of Rs 30,438 crore over the contract period.
The MOO contract will primarily comprise mine infrastructure development, removal of overburden and extraction of coking coal, crushing, transportation, setting up coal washery of 3.5 MTPA capacity, supply of steel grade coking coal to SAIL, carrying out R&R activities and other activities incidental to mining as per the project document. The project has total coal extraction reserves of 96.78 MT with an annual capacity of 4 MTPA and over-burden removal during the project period is over 535.29 MBCM. The concession period of the mine is 28 years including two years of the development period.
The project has been awarded to a consortium of Power Mech Projects Limited and PC Patel Infra, wherein PMPL is the consortium leader with a 74 per cent equity stake and PC Patel Infra will hold 26 per cent stake. A special purpose vehicle (SPV) will be formed to undertake the project. PC Patel has been in the mining sector for over a couple of decades and has rich experience in handling different kinds of mining contracts.
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On Monday, one of the Top Gainers in BSE, shares of PMPL hit 20 per cent upper circuit to Rs 5,062.25 per share from its previous closing of Rs 4,218.55. The stock also traded at a new 52-week high of Rs 5,062.25. The shares of the company saw a spurt in volume by more than 3.86 times on BSE.
The stock gave multibagger returns of 160 per cent in just 6 months and over 400 per cent in 1 year. 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.