1:1 bonus share & Rs 57,915 crore order book: Civil construction company bags new order worth Rs 425 Crore From Adani Power Ltd
The stock gave multibagger returns of 525 per cent in just 3 years whereas BSE Sensex Index is up by 30 per cent.
Power Mech Projects Limited has announced a significant order win valued at Rs 425 crore from Mirzapur Thermal Energy (UP) Private Limited, a subsidiary of Adani Power Limited. This order involves the execution of civil works and the erection of prefabricated structural steel for various units at the Mirzapur Thermal Energy project in Uttar Pradesh. The scope of work includes the main powerhouse, central control building, and other critical infrastructure components. The project is expected to be completed within 30 months from the issuance of the Notice to Proceed. This development marks a substantial addition to Power Mech's order book, reflecting its robust capabilities in handling large-scale infrastructure projects. The company continues to strengthen its position in the domestic market with this new contract, enhancing its portfolio of civil and structural engineering projects.
Power Mech Projects Limited, established in 1999, is a prominent engineering and construction company specialising in the erection, testing, and commissioning of boilers, turbines, and generators, along with balance of plant (BOP) services. The company operates through five strategic business units: Industrial Services, Industrial Construction, Infrastructure Construction, Manufacturing & Heavy Fabrication, and Mining.
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In FY24, the revenue mix was dominated by Civil Works, contributing 56 per cent, followed by O&M at 26 per cent, and Erection Works at 16 per cent. The company has a strong domestic presence, with 89 per cent of its operations in India. Power Mech's order book stands at approximately Rs 57,915 crore, with significant contributions from mining projects. The company has also ventured into coal mining with major projects like the Kotre Basantpur and Tasra MDO projects. Power Mech is actively pursuing opportunities in the infrastructure sector, focusing on railway, water projects, roads, urban infrastructure development, and energy.
Power Mech Projects Ltd announced positive results in its Quarterly Results (Q3FY25) and half-yearly results (9MFY25). According to the Quarterly Results, the net sales increased by 21 per cent to Rs 1,338 crore and net profit increased by 36 per cent to Rs 86.15 crore in Q3FY25 compared to Q3FY24. In 9MFY25, net sales increased by 16 per cent to Rs 3,380 crore and net profit increased by 34 per cent to Rs 219 crore compared to 9MFY24.
Earlier, the shares of the company ex-traded bonus equity shares in the ratio of 1:1 i.e., 1 new fully paid-up equity share of Rs 10 each will be issued for every 1 fully paid-up equity share of Rs 10 each and the ex-date for bonus shares was Tuesday, October 08, 2024. The stock gave multibagger returns of 350 per cent in just 3 years whereas BSE Sensex Index is up by 34 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.