Power Mech zooms 33% in 4 days after order win from Central Coalfield

Shares of Power Mech Projects zoomed 18 per cent to hit a fresh 52-week high of Rs 886.15 on the BSE in intra-day trade on Monday, thus surging 33 per cent in the past four trading days after order win from Central Coalfield. The stock of the construction & engineering company had hit a record high of Rs 1,164 on May 29, 2019.

The company, on Monday, June 28, 2021, said it has won a mine development & operation (MOO) project from Central Coalfields Limited (CCL), a subsidiary of Coal India, aggregating to Rs 9,294 crore over the contract period.

Power Mech Projects is one of the leading industrial services and construction companies providing versatile and comprehensive services in power and infrastructure sectors.

The MOO contract will primarily comprise of mine infrastructure development, removal of overburden and extraction of coking coal, processing, crushing and transportation of coal up to washery of CCL, carrying out R&R activities and any other activities incidental to mining as per the project document at Kotre Basantpur Pachmo OCP located in Ramgarh and Bokaro Districts, Jharkhand.

The project has been awarded to a consortium of Power Mech Projects and AMR India wherein Power Mech is the consortium leader with 74 per cent equity stake and AMR India will hold 26 per cent stake.

This project, Power Mech Projects' management said, will strengthen the already robust order book even further and enable the Company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments. Once operational, the project will add more than Rs 400 crore annually to top line.

Meanwhile, the company, in investor presentation said, non-power sector is the key for charting the Company’s growth in view of huge investments planned as part of National Infrastructure Pipeline (NIP) worth Rs 111 trillion in the next 5 to 6 years by the Government of India. Transforming the Company into an engineering and manufacturing base with backward integration will be our priority to bring in value addition, higher revenue and profitability, the company said.

Further expansion to business related to railways, roads, steel plant works, material handling works, oil and gas sector, cross country pipelines, urban infrastructure projects is on the anvil. Operations & maintenance (O&M) will continue to be our key driver, doubling in the next 4 to 5 years, Power Mech said.