Rs 57,053 crore order book: Multibagger civil construction company bags order worth Rs 209.50 crore from Hindustan Zinc Limited
The stock gave multibagger returns of over 600 per cent in just 2 years whereas BSE Sensex Index is up by 47 per cent.
On Friday, shares of Power Mech Projects Limited (PMPL) gained 0.18 per cent to Rs 6,035.25 per share from its previous closing of Rs 6,024.65. The stock’s intraday high was Rs 6,110 and its intraday low was Rs 5,880. The stock also made a fresh new 52-week high of Rs 6,110 per share while its 52-week low is Rs 3,342.75 per share.
In a positive development for Power Mech Projects Limited (PMPL), the company was awarded a substantial domestic contract valued at Rs 209.50 crore. This project entails the operation and maintenance of a 3X91.5 MW captive power plant (CPP) located at the Chanderiya facility of Hindustan Zinc Limited in Chittorgarh, India. The agreement specifies a four-year timeframe (48 months) for Power Mech Projects Limited to complete the assigned tasks of operating and maintaining the aforementioned CPP. This signifies a successful bid by Power Mech Projects Limited and potentially strengthens their position within the domestic engineering sector.
Earlier, PMPL secured a massive Rs 563.23 crore contract for its first foray into the nuclear power sector. This deal involves civil, structural and architectural work for the upcoming Kaiga Atomic Power Project Units 5 and 6 (each 700 MWe) in Karnataka, utilizing Pressurized Heavy Water Reactor (PHWR) technology. Beyond this win, PMPL also secured an additional Rs 232.03 crore in domestic projects. The largest contributor is Bharat Heavy Electricals Limited (BHEL) with a Rs 122.89 crore contract for a powerhouse, coal handling plant and ash handling structures at NTPC Talcher, Odisha. Jindal Steel Odisha Limited (JSOL) also awarded PMPL contracts: Rs 56.40 crore for structural steel in their coke oven and plate mill buildings and Rs 52.74 crore for civil and architectural works at Yadadri TPS Unit 4 & 5.
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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 9,500 crore and as of March 31, 2023, the company’s order book stands at Rs 57,053 crore.
The stock gave multibagger returns of over 600 per cent in just 2 years whereas BSE Sensex Index is up by 47 per cent. 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.
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