Shares of Power Mech Projects (PMPL) surged 10% in intraday trade to hit a fresh all-time high on Friday after the homegrown engineering and construction company bagged orders from billionaire Gautam Adani-led Adani Group. The stock of the Hyderabad-based firm has been gaining for the last four trading days and has risen nearly 16% during this period.
Extending its gaining streak, Power Mech Projects shares opened 2.56% higher at ₹1,210 on the BSE, against the previous closing price of ₹1,179.75 on the BSE. During the session, the smallcap stock soared 10.07% to attain a new height of ₹1,298.55, before settling at 1,277.55, up 8.3%. In contrast, the BSE Sensex ended at 652 points, or 1.08%, lower at 59,646 levels, with 27 of 30 shares flashing in the red zone.
The stock has risen 38% in nearly five months, from its 52-week low of ₹805.15 on March 30, 2022. In the last one month, it has jumped 50%, while it gained 36% in the calendar year 2022. The stock delivered a return of 50% in the past one year. The market capitalisation of the company currently stands at ₹1,879.59 crore.
Power Mech Projects in an exchange filing on Thursday said it has bagged a record order for five Flue Gas Desulphurisation (FGD) projects with an aggregating value of ₹6,163.20 crore from Adani Group. The orders are for a quantum of 15 FGD retrofits to coal based units, whose sizes range between 330 MW and 660 MW.
“These engineering, procurement and construction (EPC) projects are expected to be implemented over the course of the next 30 months and are prestigious to PMPL. Adani Group is considered a highly valued customer to PMPL with an association of over 15 years; rendering services for the group in multiple portfolios including power, infra, pipelines, material handling etc. These 5 projects would be implemented at Adani Group's coal based power plants in Mundra, Tiroda, Kawai and Udupi where PMPL has already established its presence,” the company said in the filing.
PMPL already has the exposure of installing India's first operational FGD at Vindhyachal 500 MW unit as an associate to General Electric (India) Ltd in 2018 itself. Presently, PMPL is executing civil works for FGD units to BHEL for their various projects, aggregating 2,300 MW including at Bhusawal, North Chennai and Kahalgaon. The major thrust on FGD EPC business is part of forward integration strategy supported by Power Mech's core competence for over two decades in power plant installation with a generating capacity of over 67,000 MW and the operation and maintenance of power plants with over 68,000 MW of installed base in the country.
Established in 1999, Power Mech Projects is an infrastructure construction company, which has developed a niche in power generation covering almost every segment including erection, testing and commissioning of BTG and BOPs, operation and maintenance, Repairs, overhauling, renovation and modernisation of power plants and related civil works. The company has its major operations in India, also extended its operations globally, and has a presence in more than ten countries worldwide.