Power Mech Projects Wins Orders Worth Rs 550 Crore

Power Mech Projects Ltd. on Monday announced that it has secured two orders worth Rs 550 crore. The orders were from SJVN Thermal Ltd. and Jhabua Power Ltd.

The first order from SJVN Thermal is worth Rs 498.39 crore, according to an exchange filing. The order is for commissioning support and comprehensive operation and maintenance contract of coal based Supercritical Buxar Thermal Power project at Chausa, Bihar. The project is to be completed in 39 months.

The second order worth Rs 52.96 crore is from Jhabua Power and is for the operation and maintenance of boiler, turbine and generator of 1x600 MW unit in Madhya Pradesh's Barela. The contract period is of three years with a provision for one-year extension.

In May, Power Mech bagged an order for Rs 971.98 crore from Telangana Power Generation Corp. in May.

The Hyderabad-based engineering and infrastructure-construction company specialises in providing comprehensive services in the power sector, including erection, testing, and commissioning of power plants.

On Monday, the company's stock settled 2.61% higher at Rs 3,220.50 apiece on the NSE, compared to a 0.27% decline in the benchmark Nifty 50. The Rs 550-crore order win was announced after the market hours.

Power Mech's shares have risen 11.34% over the past 12 months and 25.31% year-to-date.

Out of three analysts tracking the company, one maintains a 'buy' rating and two suggest 'hold', according to Bloomberg data. The average 12-month consensus price target of Rs 3,110.33 implies a potential downside of 3.4%.