This civil construction company delivered over 182% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 2.8 lakh today.

Power Mech Projects Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 880.15 on 18th April 2022 to Rs 2,483.30 on 17 April 2023, an increase of 182% in the one-year holding period.

Recent financial performance

In the recent quarter Q3FY23, on a consolidated basis, the company’s net profit increased by 61.88% YoY to Rs 52.24 crore. The company’s net revenue increased by 40.75% YoY to Rs 909.11 from Rs 645.91 crore.

The company is currently trading at a PE of 20.6X against the industry PE of 29.8x. In FY22, the company delivered an ROE and ROCE of 14.4% and 17.8%, respectively. The company is a constituent of Group B stocks and commands a market capitalization of Rs 3,703 crore.

Company Profile

Power Mech Projects Ltd is one of the leading infrastructure-construction companies based in Hyderabad, India with a global presence. It was established in the year 1999 by an enthusiastic engineering entrepreneur S. Kishore Babu with the chosen motto of providing service with high quality, safety and timeline, the three virtues still holding the company in high esteem.

The company during its two decades of existence has undertaken projects of all types, sizes and under extreme environments in India and abroad which include Ultra Mega Power Projects, Super Critical Thermal Power Projects, Sub Critical Power Projects, Heat Recovery Steam Generators, Waste Heat Recovery Steam Generators, Circulating Fluidized Bed Combustion Steam Generators, Gas Turbine Generators, Hydro Electric Projects, Operation & Maintenance of running plants and entire civil works for power plants.

Growth Drivers

The company is highly credited with providing a spectrum of services in the power and infrastructure sectors. Besides, the company has emphatically established a niche in power generation covering almost every segment including erection, operation and maintenance, repairs, overhauling, renovation and modernisation of power plants and related civil works. Power Mech, having its major operations in India, also extended its operations globally and has a presence in more than ten countries worldwide.

Share price movements

Today, the share of Power Mech Projects Ltd opened at Rs 2,489.80 and has touched a high and low of Rs 2,500.25 and Rs 2,454.50, respectively. So far 154 shares have been traded on the bourses.

At the time of writing, the shares of Power Mech Projects Ltd were trading at Rs 2,474.30, a decrease of 0.22% from the previous day’s closing price of Rs 2,479.65 on BSE. The stock has a 52-week high and low of Rs 2,548.70 and Rs 810.95 respectively on BSE.