Power Mech surges 8%, hits record high on winning orders worth Rs 720 crore

The stock price of PMPL has appreciated by 70 per cent from a level of Rs 1,571 touched on February 3 on the BSE

Shares of Power Mech Projects (PMPL) rallied 8 per cent to hit a record high of Rs 2,673.70 on the BSE in Monday’s intra-day trade after the company announced winning orders worth Rs 720 crore. The stock of the civil construction company has surpassed its previous high of Rs 2,548.70, touched on April 10, 2023.

The company said it has received an order amounting of Rs 362 crore for the construction of government medical college & hospital for UttaraKhand Pey Jal Nigam Limited.

The company also bagged an order worth Rs 162 crore for distribution works under ROSS (Revamped Distribution Sector Scheme) for MPPKWCL, Khargone Circle, Indore, Madhya Pradesh and railway electrification of 25 KV OHE Works, Mysuru Division, Karnataka.

The additional Rs 106 crore-order has been secured for balance erection works & refurbishment of 2x525 MW Monnet ISpat, JSPL,Angul, Odisha, the company said in an exchange filing. The company also received order of Rs 90 crore for operation & maintenance of complete sea water Intake system at 702 MW CCPP, GSPC Pipavav Power Company Limited, Pipavav, Gujarat.

Meanwhile, the stock price of PMPL has appreciated 70 per cent from a level of Rs 1,571 touched on February 3 on the BSE. In the past one year, it has zoomed nearly 200 per cent as against a 6 per cent rise in the S&P BSE Sensex.

PMPL is primarily engaged in the business of providing engineering and construction services with focus on power and infrastructure sector. The company has diversified its operations across a range of sectors like Railways, Transmission & Distribution (Electrical), Flue Gas Desulphurization (FGD), Mining, Steel and Process Industry Refinery, Hydro projects, Manufacturing, Cross Country Pipe Laying civil works and operations & maintenance of power plants etc.

PMPL was awarded 5 orders from the Adani Group in August 2022 amounting to Rs 6,163 crore for implementation of wet limestone based Flue Gas Desulphurization system on Engineering Procurement and Construction (EPC) basis. The projects are expected to be completed in 18-30 months from the effective date with performance guarantee period of additional 3 months post commissioning of project.

The company’s total order book position as on December 31, 2022 stood at Rs 24,201 crore as against Rs 18,149 crore as on March 31, 2022.