WHAT ARE THE FACTORS DRIVING POWER MECH PROJECTS' REMARKABLE STOCK SURGE?
Published By MintGenie Team | 30 Apr, 2024
Power Mech Projects has exhibited remarkable stock performance, delivering multibagger returns consistently over the past three years.
Credit : PIXABAY
The stock's shares surged from ₹928 to ₹5,255 in two years, marking a remarkable 466% increase, and an impressive 811% return over three years.
Credit : UNSPLASH
Annual performance highlights include gains of 116% in CY23, 111% in CY22, and 117% in CY21, showcasing its consistent growth trajectory.
Credit : PIXABAY
The stellar performance is attributed to significant order wins and ongoing improvement in financials.
Credit : UNSPLASH
Power Mech Projects, a small-cap stock with a market capitalisation of ₹8,317 crore, specializes in power infrastructure services, including ETC-BTG, BOP works, civil works, and O&M services.
Credit : UNSPLASH
Recent order wins include contracts from BHEL, Jindal Steel Odisha Limited, and South East Central Railway, among others, totaling several hundred crores.
Credit : PIXABAY
The company aims to expand its presence in the railway sector, targeting 8% to 10% of total business by FY26.
Credit : UNSPLASH
It also anticipates the water business to constitute over 15% of its operations in the next two years.
Credit : PIXABAY
Institutional investors, both foreign and domestic, have increased their stake in the company, reflecting confidence in its growth prospects.
Credit : UNSPLASH
Promoters maintain the majority stake at 60.4%, with regular shareholders holding 15.2% stake, as of Q4FY24.