Power Mech hits new high on order win from Adani Group; soars 52% in 1 mth

Shares of Power Mech Projects (PMPL) hit a new high of Rs 1,298.55 after rallying 10 per cent on the BSE in Friday’s intra-day trade.

The stock of the Hyderabad based construction and services firm has gained 12 per cent in the past two days after the company said it has bagged an order worth Rs 6,163.2 crore for five flue gas desulphurization [FGD] projects from the Adani Group.

At 11:26 am; PMPL was trading 7 per cent higher at Rs 1,267 as compared to a 0.63 per cent decline in the S&P BSE Sensex. In the past one month, the stock has zoomed 52 per cent versus a 10 per cent rise in the benchmark index.

“The orders are for a quantum of 15 FGD retrofits to coal based units, whose sizes ranging between 330 MW and 660 MW. These engineering, procurement and construction (EPC) projects are projected to be implemented over the course of next 30 months,” the company said in a press release.

Post commissioning of these projects, opportunities are envisaged for undertaking operation & maintenance (O&M) of the units, thus enhancing the space for service profile of the company and bringing in value addition. PMPL has tied up with well proven technology partners for professional support for service and supply in installing these FGDs, the company said.

The management said these major orders will invariably strengthen the already robust order-book and enable the company to further diversify its scope, in line with its strategy to balance optimum mix between power and non-power segments.

With the projected revenues flowing in from FGD system projects, the management expects to enjoy sustainable fiscal margins In the future and also ensure augmenting O&M footprint in the near future.