Power Mech Projects Limited witnessed a notable 5% surge in its share price on Monday, reaching ₹2,279 per share on the National Stock Exchange (NSE). This upward movement follows the company's announcement of securing a significant ₹579 crores contract from Bharat Heavy Electricals Limited (BHEL).
The latest order involves civil structure construction, including foundations, a chimney raft, service buildings, labour accommodations, and other essential infrastructure components. Market analysts suggest that the order reinforces the company's robust order pipeline, making it an attractive option for investors looking to buy shares online in the infrastructure sector.
Expanding project portfolio strengthens market position
This recent contract is an addition to the ₹164.62 crores order that Power Mech Projects Limited secured from BHEL last month for the 2 x 800 MW Damodar Valley Corporation (DVC) Koderma Thermal Power Station (TPS) Phase-II project. The new order enhances the company's execution capabilities in the power and infrastructure domain.
The company's total order book stood at ₹57,915 crores as of December 2024, demonstrating a strong revenue visibility for the coming years. Investors exploring opportunities to buy shares online may find Power Mech Projects Limited's growing order book an encouraging factor for long-term growth.
Financial performance reflects a strong growth trajectory
Power Mech Projects Limited reported a 20.8% year-on-year increase in revenue for the previous quarter, reaching ₹1,337 crores. The company's operating profit grew by 12.7%, standing at ₹150 crores, while the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin was recorded at 11.2%.
Notably, net profit surged by 35% year-on-year, reaching ₹86 crores compared to ₹63.3 crores in the same period last year. The consistent financial growth and strong operational execution further solidify its attractiveness for investors considering an opportunity to buy shares online in the infrastructure sector.
Key metrics and market performance
At 11:00 AM on March 24, 2025, the shares of Power Mech Projects Limited were trading 8.62% higher at ₹2,356 per share, compared to the previous close on the NSE. The company currently holds a market capitalisation of ₹7,451 crores. Key financial metrics indicate a price-to-earnings (P/E) ratio of 25.4 and a Return on Capital Employed (ROCE) of 23.8%, highlighting strong operational efficiency.
The Return on Equity (ROE) stands at 15.9%, with a book value of ₹619 per share. Despite a declining promoter holding over the last three years, analysts remain optimistic about the company's growth trajectory, making it a viable option for those looking to buy shares online with a long-term perspective.
For android only