Power Mech Shares Soar After Rs 294-Crore Order Win From Adani Power

Shares of Power Mech Projects Ltd. surged over 5% on Wednesday after it bagged an order worth Rs 294 crore from Adani Power Ltd. for commissioning steam and steam turbine generators.

The civil construction company secured an order from the Adani Group company for overhauling services, condition assessment, erection, testing, and commissioning of performance guarantee test of steam generator and steam turbine generator.

This order win comes along with its auxiliaries for units 3 and 4 of the 2x660 megawatt Korba phase-II thermal power project, according to an exchange filing on Wednesday.

Last week, Power Mech said it secured an order worth Rs 510 crore from Adani Power for mechanical construction work. The mechanical construction work has to be executed at a Thermal Power Project at Adani Power in Chhattisgarh.

Power Mech stock rose as much as 5.8% during the day to Rs 2,720 apiece on the NSE. It was trading 5.3% higher at Rs 2,706.6 apiece, compared to a 0.39% advance in the benchmark Nifty 50 as of 3:03 p.m.

The stock has risen 20% during the last 12 months. The total traded volume so far in the day stood at three times its 30-day average. The relative strength index was at 53.

One out of the two analysts tracking the company has a 'buy' rating on the stock, and one suggests a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 7%.

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