Hyderabad-based Power Mech Projects Limited announced today that it has secured a significant order worth Rs 1,009 crore from JSW Thermal Energy Limited, a subsidiary of the JSW Group. The news sent the company's shares soaring by nearly 6% in early trading.
Major Contract for West Bengal Power Project
The contract specifically covers the Civil & Structural Works for the BTG (Boiler, Turbine, Generator) Area of a large-scale 2x800 MW Thermal Power Project. This crucial infrastructure development is located in Salboni, within the state of West Bengal.
According to the company's filing, Power Mech Projects is tasked with executing the extensive civil and structural works. The project is expected to be completed within a challenging timeframe of 36 months from the effective date or commencement of operations, whichever is applicable.
Stock Performance and Market Impact
Following the announcement, Power Mech Projects' stock rose 5.92% to Rs 3008, compared to its previous close of Rs 2840.50. This surge pushed the company's market capitalization to Rs 9271 crore. Approximately 0.26 lakh shares were traded, generating a turnover of Rs 7.84 crore.
The company's shares have shown strong performance recently, gaining 48% over the past three months. However, they have seen a 3.27% decline over the last year. Despite this, the stock has rebounded significantly from its 52-week low of Rs 1718, recorded on March 30 of the current year, marking a 71% increase.
Technical indicators suggest low volatility for the stock, with a beta of 1.55. The Relative Strength Index (RSI) stands at 66.4, indicating the stock is neither in the overbought nor oversold territory. Power Mech Projects' shares are currently trading above their 5-day, 10-day, 20-day, and 200-day moving averages, though below the 30-day, 50-day, 100-day, and 150-day averages.
About Power Mech Projects
Power Mech Projects is an established engineering and construction firm specializing in integrated services. Its core competencies include the erection, testing, and commissioning (ETC) of boilers, turbines, generators, and balance of plant (BOP), alongside comprehensive civil works and operation and maintenance (O&M) services.