Power Mech Projects rises on securing orders worth over Rs 1,500 cr

Power Mech Projects rose 2.91% to Rs 482.60 after the company said it secured letter of award for projects worth Rs 1,507 crore.

The company won civil & architectural works of coal handling plant (CHP) at Yadadri Thermal Power Plant in Telangana for a contract price of Rs 290 crore to be executed over 26 months.

It also won sand mining contracts worth Rs 477 crore from the Madhya Pradesh State Mining Corporation.

Further, Power Mech Projects, as leader of the consortium with Pune-based Thyssenkrupp Industries India, has been placed the lowest bidder for the EPC tender called by NMDC. The turnkey job is for installation of the third screening and crushing plant of iron ore at Kirandul, Chattisgarh. The total value of the bid is Rs 1,229 crore and the share of Power Mech Projects is Rs 740 crore around 60% as leader of the consortium. The contract is to be executed over 33 months. The announcement was made during market hours today, 6 July 2020.

On the technical front, the stock's RSI (relative strength index) stood at 64.965. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading in between its 50-day moving average (DMA) placed at Rs 378.51, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 560.27, would act as a resistance in the upcoming trade.

On a consolidated basis, Power Mech Projects' net profit dropped 21.6% to Rs 31.59 crore on a 9.2% fall in net sales to Rs 594.56 crore in Q4 March 2020 over Q4 March 2019.

Power Mech Projects operates as an engineering and construction company, which provides erection, testing and commissioning (ETC), civil and operation and maintenance services for power projects.

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