Shares of Power Mech Projects regained momentum in Wednesday’s trading session, surging over 5.7% to touch a high of ₹2,204 apiece. The rebound comes after the integrated power infrastructure services company bagged significant contracts from subsidiaries of Adani Power, signaling renewed activity in the stock market today.
Market Performance Snapshot
Wednesday’s trade highlighted a positive shift for Power Mech Projects after months of stress in the market. Key points from today’s trading include:
- Share price high: ₹2,204
- Daily gain: 5.7%
- Market sentiment: Optimistic following large orders announcement
- Recent trend: Stock recovering after prolonged correction over past seven months
Despite a sharp correction earlier, the company’s shares still reflect strong long-term gains. Between 2021 and 2024, the stock delivered nearly 1,100% returns. Over the last three years, cumulative gains stand at 103%, and over five years, the stock is up 800%.
Major Orders from Adani Power Subsidiaries
Power Mech Projects announced in an exchange filing that it has secured multiple orders from Adani Power subsidiaries, reinforcing its position in India’s power infrastructure sector.
- Mirzapur Thermal Energy (UP) Pvt Ltd awarded an ETC contract for SG and STG packages of the 2x800 MW Mirzapur Phase-I Ultra Supercritical Thermal Power Project.
- Contract value: ₹515 crore (excluding GST and applicable taxes)
- Project timeline: Completion within 36 months
- Mahan Energen Limited, another Adani Power subsidiary, also awarded a similar ETC contract for SG and STG packages of the 2x800 MW Mahan Phase-III Ultra Supercritical Thermal Power Project.
- Contract value: ₹490 crore (excluding GST and applicable taxes)
Combined, these two contracts are valued at ₹1,005 crore, marking a significant order intake for the company.
Company Financial Snapshot
Power Mech Projects recently reported its quarterly financials for December, showing healthy growth across revenue and profitability metrics:
- Consolidated revenue: ₹1,433 crore, up 6% YoY
- EBITDA: ₹173 crore, up 8% YoY
- EBITDA margin: 12.08%
- Net profit: ₹96.33 crore, higher than ₹86.55 crore in the year-ago quarter
The company also reported securing fresh orders worth ₹6,761 crore in the first three quarters of the current fiscal, achieving 68% of its annual target. Its order backlog is expected to reach ₹56,806 crore by the end of the fiscal year.
Power Mech Projects Share Price Trend
The stock has seen a turbulent journey over the past year:
- Seven-month decline: -38%
- Peak price: ₹3,725
- Current drawdown: 42% from peak
- Long-term performance: Nearly 1,100% returns from 2021–2024
Today’s bounce reflects renewed market interest, driven by the confirmation of substantial contracts, and adds a positive note to the stock’s ongoing recovery.
Summary
Power Mech Projects is showing signs of renewed strength in the stock market today, propelled by large-scale orders from Adani Power subsidiaries totaling over ₹1,000 crore. The company’s solid quarterly numbers and ongoing order execution highlight its resilience, even after a prolonged period of market stress. Investors following the Power Mech Projects share price are witnessing a clear demonstration of how strong order inflows can influence market sentiment and performance.
Source: Livemint
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