20% Upper Circuit: Multibagger Small Cap Stock Bags Rs 30,438-Cr Project From SAIL

Small cap stock Power Mech Projects Ltd (PMPL) gained 9.04% intraday on BSE after it bagged mine development and operation project (MDO) from the Steel Authority of India Ltd (SAIL) on July 31, 2023, according to its BSE filing. Power Mech stock hit 20% upper circuit and traded new 52-week high in trade today after bagging order from SAIL. The estimated value of the order is Rs 30,438 crore and duration of the contract is 28 years including 2 years of development period. Current market price of Power Mech Projects Rs 4600.00 apiece on BSE. Check details below:

Power Mech Rallies On Bagging Rs 30,438-Cr Project From SAIL: According to the BSE filing of the company dated July 31, "Power Mech Projects Limited, one of the leading industrial services and construction Company providing versatile and comprehensive services in power and infrastructure sector, has been awarded a Mine Development & Operation (MOO) project, Tasra OCPlocated in Jharia Coal Fields,Ohanbad, Jharkhand, by Steel Authority of India Ltd for an estimated value of Rs. 30,438 Croresover the contract period."

The project has been awarded to a consortium of Power Mech Projects Limited and PCPatel Infra, wherein PMPL is the consortium leader with 74% equity stake and PCPatel Infra will hold 26% stake. A Special Purpose Vehicle (SPV)will be formed to undertake the project. PCPatel has been in the mining sector for over a couple of·decades and has rich experience in handling different kinds of mining contracts.

Sajja Kishore 8abu, Chairman and Managing Director said at Power Mech Projects said, "'This project will further strengthen our robust order book and enable the Company to diversify its order book which is in line with its strategy to have an optimum mix between power and non-power segments. The revenue booking can be started from FY24 onwards. Thisproject can add peak turnover of around Rs. 1,200 crores plus escalation annually.

Power Mech Stock Performance & Return: Current market price of Power Mech share is Rs 4626.00 apiece on BSE. Its 52-week high price is Rs 5062.25 per share and 52-week low price is Rs 878.95 per share, respectively. It has a market capitalisation of Rs 6895.68 crore. Power Mech shares delivered 145% return in last 6-months, 405% return in last 1-year, and 997% return in last 3-years.

Power Mech About: Power Mech Projects Limited, isone among the leadinginfrastructure-construction Companiesbased in Hyderabad, India with global presence and highly credited in providing spectrum of services in power and infrastructure sectors. Establishedin 1999, the Companyhas emphatically made a niche in power sector, covering almost every segment including Erection, Testing and Commissioning of BTG and BOPs,Operation and Maintenance (O&M), Repairs,Overhauling, Renovation and Modernization of power plants and related Civil Works.

Disclaimer: The stock hit upper circuit and traded new 52-week high after bagging order from SAIL. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision. Be the first one to Comment