1:1 Bonus Issue: Power Infra Company Bags Order Worth Rs 226.66 Crore from GMDC, FIIs and DIIs Increase Stake in Q1!

Rakesh Deshmukh
1:1 Bonus Issue: Power Infra Company Bags Order Worth Rs 226.66 Crore from GMDC, FIIs and DIIs Increase Stake in Q1!

The company’s shares have delivered an impressive return of over 640 per cent in the past 3 years.

This Small-Cap power infra company has secured an order valued at Rs 226.66 crore (excluding GST) for serving as the Comprehensive Operations and Maintenance (O&M) partner for Gujarat Mineral Development Corporation Limited’s 250 MW (2x125 MW) Akrimota Thermal Power Station (ATPS) in Gujarat. The contract covers the operation, maintenance, and repair of the 250 MW power plant and its equipment, including the power generation systems, transmission lines, and the 220KV switchyard. The contract will be executed over a three-year period, starting tentatively from December 16, 2024.

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.

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On Friday, the shares of Power Mech Projects closed at around Rs 6701.35 per share on the BSE. The company’s current market capitalization stands at Rs 10,593.59 crore. Additionally, the company’s shares have delivered multibagger a return of over 640 per cent in the past 3 years.

As per the Quarterly Results, in the Q1 FY25, Power Mech Projects recorded a revenue of Rs 1007 crore compared to Rs 865 crore. The operating profit stood at Rs 113 crore. The net profit stood at Rs 62 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 ₹10 each they held. The board had also set Saturday, 28th September 2024, as the record date to determine shareholder eligibility.

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Investors must keep this stock on their radar.

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

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