Power Mech Reaches New Adani Group Order Record; climbed 52% in 1 month

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Shares of Power Mech Projects (PMPL) hit a new high of Rs 1,298.55 after gaining 10% on BSE during Friday’s intraday trading.

Share of the Hyderabad-based construction and services company has gained 12% in the past two days after the company said it placed an order worth Rs 6,163.2 crore for five desulfurizations of flue gas. [FGD] Adani Group projects.

At 11:26 a.m.; PMPL was trading up 7% to Rs 1,267, against a 0.63% decline in the S&P BSE Sensex. Over the past month, the stock has climbed 52% against a 10% rise in the benchmark.

“The orders are for a quantum of 15 FGD retrofits of coal-based units, ranging in size from 330 MW to 660 MW. These engineering, procurement and construction (EPC) projects are expected to be implemented over the next 30 months,” the company said in a press release.

After the commissioning of these projects, opportunities are considered to undertake the operation and maintenance (O&M) of the units, thereby enhancing the space for the company’s service profile and adding value. PMPL has teamed up with proven technology partners for professional service and supply support when installing these FGDs, the company said.

Management said these major orders will invariably strengthen the already strong backlog and allow the company to further diversify its scope, in line with its strategy to balance an optimal mix between electric and non-electric segments.

With the projected revenues from FGD system projects, management expects to benefit from sustainable tax margins in the future and also ensure the increased O&M footprint in the near future.

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