Multibagger stock: Shares of Power Mech Projects, an integrated power infrastructure services company in India, regained momentum in Wednesday’s trade on February 18, surging 5.7% to hit the day’s high of ₹2,204 apiece after the company secured significant orders.
In an exchange filing today, the company announced that it had received multiple orders from subsidiaries of Adani Power.
Mirzapur Thermal Energy (UP) Private Limited, a subsidiary of Adani Power, awarded the company an ETC contract for SG and STG packages of the 2×800 MW Mirzapur Phase-I Ultra Supercritical Thermal Power Project.
The project is scheduled to be completed within 36 months from the commencement date. The total value of this contract is ₹515 crore (excluding GST and other applicable taxes), according to the company’s exchange filing.
The company also received a similar order from Mahan Energen Limited, another subsidiary of Adani Power.
The order pertains to the ETC contract for SG and STG packages of the 2×800 MW Mahan Phase-III Ultra Supercritical Thermal Power Project. The contract is valued at ₹₹490 crore (excluding GST and other applicable taxes). Combined, the total value of both orders stands at ₹1,005 crore.
The power company earlier this month announced its financial performance for the quarter ended December, reporting consolidated revenue of ₹1,433 crore, reflecting a 6% year-on-year (YoY) growth. EBITDA during the reporting quarter rose 8% YoY to ₹173 crore, with margins coming in at 12.08%.
On the bottom line, net profit stood at ₹96.33 crore, higher than the ₹86.55 crore reported in the year-ago quarter.
The company in its earnings’ filing said that it secured fresh orders worth ₹6,761 crore in the first three quarters, achieving 68% of its total target. It has set a target of ₹10,000 crore in fresh orders for the current year and expects its order backlog to reach ₹56,806 crore by the end of this fiscal.
Power Mech Projects share price trend
The shares have remained under prolonged stress, finishing the last seven months in the red and losing a cumulative 38%. From its record peak of ₹3,725 apiece, the stock is currently down 42%.
Despite the sharp correction, the stock still trades with strong long-term gains accumulated between 2021 and 2024, during which it delivered nearly 1,100% returns. Cumulatively, the stock is up 103% over the last three years and 800% over the past five-year period.
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