Fundamental Analysis

POWER MECH PROJECTS LTD. 

Ticker : 539302 
BUY : Rs 835.95 
Target : Rs 930

Power Mech Projects Ltd. is one of the leading infrastructure-construction companies providing a spectrum of services in the power & infrastructure sectors. On the consolidated quarterly front, the company recorded a strong increase in the net sales and operating income, being at Rs 622.85 crore for Q1FY22 as compared to the net sales & operating income of Rs 275.01 crore reported for Q1FY21. The operating loss turned positive, recording an operating profit of Rs 71.24 crore in Q1FY22 as against an operating loss of Rs 12.01 crore incurred in Q1FY21. The company reported a net profit of Rs 32.75 crore in Q1FY22 as against an operating loss of Rs 32.59 crore registered in Q1FY21. The company is expected to be in a strong growth trajectory in FY22, owing to strong order inflow, diversification to the non-power segment, and increased focus in the O&M segment. Hence, we recommend BUY.