Power Mech Projects gain 7 per cent on major order win
Power Mech Projects Limited informed the exchanges on Monday that it has received three different orders worth Rs 1,507 crore.
The first order includes civil and architectural work at Yadadri Thermal Power Plant in Telangana. This order is worth Rs 290 crore and would be executed over the next 26 months.
The second order includes sand mining contracts in Sehore District and Bhind District (both in Madhya Pradesh). These orders are worth Rs 477 crore and would be executed over the next 30 months.
The third order is for NMDC for the turnkey job of the proposed 12 MTPA installation of the third screening and crushing plant of iron ore in Chhattisgarh. Power Mech Projects hold 60 per cent of this project worth Rs 740 crore. This contract would be executed over the next 33 months.
Power Mech Projects’ order book as of December 31, 2019 stood at Rs 5,777 crore, which translates into order book to sales ratio of 2.55x that provides medium to long-term revenue visibility.
Power Mech Projects Limited operates as an engineering and construction company, providing erection, testing, and commissioning (ETC) as well as civil, operation and maintenance services for the power projects.
Cheering the order win, the stock jumped by 7 per cent and made an intraday high of Rs 503 and finally settled at Rs 489.55 on BSE.