Power Mech Projects’ Q2FY22 consolidated revenue grew 56.2% year-on-year, but was below brokerage Nirmal Bang’s estimate. The company’s management highlighted that the margin profile of the company will improve gradually. It has also reiterated its topline guidance.
Buying advice of brokerage and research firm multibagger stock Comes with Revised Target Price of Power Mech Projects 1,130 per share (from 1,050 earlier) As stated, the current valuation is cheap considering the company’s healthy order book.
It said its enhanced target reflects the company’s continued efforts to diversify into the civilian segment on a large scale. Shares of Power Mech Projects have given a multibagger return of 122% so far this year (YoY or YTD).
Management expects to see a strong ramp-up in terms of execution in the third and fourth quarters. Management mentioned that it is exploring new opportunities in energy/infra/metal/mineral/railway sectors (application has been submitted). It also awaits two major opportunities for crushing/mineral processing with technology partners such as FLSmidth and Thyssenkrupp for EPC technology tender with NMDC, the note highlighted.
Meanwhile, Power Make Projects on Monday said it has received two orders 725 crore as stated in an exchange filing. Company has received an order 645 cr and another order value from National Highways Authority of India (NHAI) 80 crores from Howe India.
Power Make Projects Posted 27 crore consolidated net profit for the September quarter 2021-22. it had a net loss 55.10 crore in the quarter ended September 30, 2020. Growing company’s total income 544.29 crore in the quarter under review. From 347.55 crore in the same period a year ago.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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