18 Nov , 2021 By : Kanchan Joshi
Power Mech Projects’ Q2FY22 consolidated revenue increased by 56.2% year-on-year to but was below brokerage Nirmal Bang's estimate. The company's management highlighted that the company’s margin profile will improve gradually going forward. It has also reiterated its topline guidance.
The brokerage and research firm's Buy recommendation on the multibagger stock Power Mech Projects comes with a revised target price of Rs1,130 per share (from Rs1,050 earlier) as it said that the current valuation is inexpensive considering the company’s healthy order book.
It said its increased target multiple largely reflects the company’s continued efforts at the company's diversification into the civil segment. Power Mech Projects shares have given multibagger return of 122% this year (year-to-date or YTD) so far.
The management expects third and fourth quarter to see a strong ramp-up in terms of execution. The management mentioned that it is exploring new opportunities in Energy/Infra/Metals/Minerals/Railway sectors (has submitted applications). It is looking forward to two major opportunities with NMDC for crushing/mineral processing for EPC technology tender with technology partners like FLSmidth and Thyssenkrupp, the note highlighted.
Meanwhile, Power Mech Projects on Monday said it has bagged two orders worth Rs725 crore as informed in an exchange filing. The company has bagged an order worth Rs645 crore from National Highways Authority of India (NHAI) and another order worth Rs80 crore from Howe India.
Power Mech Projects posted Rs27 crore consolidated net profit for September quarter 2021-22. It had incurred a net loss of Rs55.10 crore in the quarter ended September 30, 2020. The company's total income rose to Rs544.29 crore in the quarter under review from Rs347.55 crore in the same period a year ago.
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