Orderbook 586% higher than market cap – Multibagger power stock

Orderbook 586% higher than market cap – Multibagger power stock

by | Mar 30, 2025 | Case Study

This small-cap power company, which provides infrastructure services, including building, operating, and maintaining power plants, as well as working on railway, water, and industrial projects, is in focus after the company’s order book 586 percent higher than its market cap and is currently trading at a discount of 27 percent.

Stock Price Movement:

With a market capitalization of Rs. 8,594.10 crore, the shares of Power Mech Projects Limited closed at Rs. 2718.25 per equity share, up nearly 11.64 percent from its previous day’s close price of Rs. 2434.90.

 

ver the last five years, the stock has provided impressive returns of more than 1,521 percent. But the stock is currently trading at 27.03 percent below its 52-week high of Rs. 3,725.

 

Company Overview:

Power Mech Projects Limited was founded in 1999 and is an engineering and construction company that offers integrated services in the erection, testing, and commissioning (ETC) of boilers, turbines, generators, and balance of plant (BOP).

 

The company also provides civil works and operation and maintenance (O&M) services. The company handles large-scale projects, including ultra mega power projects, super critical thermal power projects, and sub-critical power projects.

 

Recent Orders:

As of March 26, 2025, Power Mech Projects Limited secured multiple significant orders, as reported. On January 1, 2025, the company received a Rs. 294 crore contract from Adani Power for overhauling and commissioning services at the Korba Phase-II Thermal Power Project. On February 25, 2025, Power Mech secured a Rs. 164.63 crore order from Bharat Heavy Electricals Limited (BHEL) for the EPC project at DVC Koderma TPS Phase-II.

Additionally, on March 21, 2025, Power Mech won a Rs. 579 crore order from BHEL for civil, structural, and architectural works at the Koderma project. The total value of these orders in Q4 FY25 amounts to Rs. 1,037.63 crore.

Order Book:

As of December 2025, the company has secured orders worth Rs. 4,242 crores and has a strong order backlog of Rs. 57,915 crores, including Rs. 18,284 crores from non-MDO projects. Looking ahead, the company is actively bidding for new projects worth Rs. 3,000 crores by March 2025 and is the lowest bidder for the Rs. 973 crore Deoghar Bypass Highway Project.

As of March 26, 2025, the company’s order book stands at Rs. 58,952.63 crore, which is approximately 585.97 percent higher than its market cap of Rs. 8,594.10 crore. This means the order book is about 6.86 times larger than the company’s market value, indicating a strong potential for future growth.

Guidance and Outlook:

The company aims for a revenue of Rs. 7,500 crores in FY26, which is an increase of 78.5 percent from FY24’s revenue of Rs. 4,207 crores. Compared to FY27, with a projected revenue of Rs. 9,000 crores, the company expects a growth of 20 percent from FY26, indicating strong growth in the coming years.

 

The company expects EBITDA margins to improve by 0.5 percent annually, reaching up to 1.5 percent at full capacity. The focus is on securing profitable orders and O&M contracts, with strong growth expected in the power sector due to new infrastructure projects.

 

Clientele:

The company has developed strong relationships with both local and international clients. In India, it works with big companies like NTPC, ONGC, Reliance, Tata Power, and Indian Oil. Globally, it partners with famous names like Siemens, GE, Mitsubishi, and Hyundai, showcasing its ability to handle large projects across different industries.

Recent quarter results and ratios:

Power Mech Projects Limited’s revenue grew by 20.76 percent, rising from Rs. 1,108 crore in Q3 FY24 to Rs. 1,338 crore in Q3 FY25. Its net profit also increased by 40.32 percent, from Rs. 62 crore in Q3 FY24 to Rs. 87 crore in Q3 FY25.

Power Mech Projects Limited’s revenue and net profit have grown at a CAGR of 13.22 percent and 21.72 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE should be 23.8 percent and 15.9 percent, respectively. Power Mech Projects Limited has an earnings per share (EPS) of Rs. 92.9, and its debt-to-equity ratio is 0.34x.

Majority of stocks still trapped in death cross but Nifty 50 rebounds

Majority of stocks still trapped in death cross but Nifty 50 rebounds

by | Mar 24, 2025 | Case Study

The market was in a downtrend for the last 6 months largely because of continuous selling by Foreign Institutional Investors (FIIs). Key reasons for FII selling were the strengthening of the US dollar, concerns over a slowdown in corporate earnings growth, global economic uncertainties, high valuations of emerging markets, and trump tariff risks.

Factors that helped the Market rebound 

The government is constantly working to regain India’s growth momentum. With tax cut announcements, that can help boost the GDP and help with overall economic growth. RBI also cut the Cash Reserve Ratio (CRR) & Repo rate, with further rate cut expectations to boost consumer spending. Additionally, Brent Crude prices are trading in a broad range with reduced volatility, which is highly beneficial for India as the import cost is kept in check, which in turn reduces the trade deficit.

In terms of valuations Nifty 50 PE had dropped below 20, only for the 2nd time in 5 years. It had dropped to 18.92 during the Russia-Ukraine war and had dropped to 17.15 on March 23, 2020. It showed that Nifty was highly Undervalued which led to valuation correction.

Nifty 50 Falling Trendline Breakout

A falling trendline or downtrend line is a straight line drawn across declining highs on the price chart. The line represents as a resistance level, which indicates that sellers are in control of the downtrend. When a trendline is broken, it signals a potential trend reversal or just a temporary breakout.

On a weekly time frame, the Nifty 50 has given a closing basis break out of a falling trendline. Since September the falling trendline was never broken on a closing basis.

THE MAJORITY OF NIFTY 50 STOCKS ARE STILL IN THE DEATH CROSS

The Death Cross is a bearish technical pattern that occurs when the 50-day moving average (DMA) crosses below the 200-day moving average (DMA). This crossover indicates a potential shift from an uptrend to a downtrend, signaling weakness in the stock or broader market. It is the opposite of the Golden Cross.

Out of the 50 Constituents of Nifty 50, 33 stocks, or 66 percent of the total constituents are still trading in the Death Cross, this shows that the medium-term trend is still bearish.

Realty stock company plans ₹40,000 Cr investment in housing and commercial projects

Realty stock company plans ₹40,000 Cr investment in housing and commercial projects

by | Mar 24, 2025 | Featured

 The country’s largest real estate firm came into focus on Monday after the company announced plans to invest around  Rs 40,000 crores in the housing sector.

Stock Performance

With a market capitalization of Rs 1.7 lakh crore, the shares of DLF Ltd opened nearly 3 percent higher at Rs 715 per share compared to the previous closing price of Rs 696.75. The stock retraced and was trading at Rs 706.20, marking a 1 percent increase from the previous close.

What Happened

According to news agency PTI, DLF Group met with analysts in Gurugram last week to provide an update on its current business status and medium-term plans.
DLF, India’s largest real estate company has noted a Rs 40,000 crore investment over the next 4-5 years to develop housing and commercial projects.

About Rs 20,000 crore will be used to complete ongoing housing projects, mostly in Gurugram. Another Rs 20,000 crore will go towards developing commercial office and retail spaces in Delhi-NCR, Goa, and South India in the medium term.

Housing Business

DLF has launched various luxury projects, including The Dahlias, which has a revenue potential of Rs 35,000 crore. The company has already achieved Rs 19,187 crore in bookings in the first nine months of FY25, exceeding its annual sales target of Rs 17,000 .

Rental Business

Under the rental segment, most assets are managed by DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and GIC. The company plans to expand its rent-generating commercial properties from 44 msf to 73 msf. Further, DLF’s rental properties have a 93 percent occupancy rate.

Company Overview

DLF Ltd is a leading real estate development firm in the nation. It owns several subsidiaries, associates, and joint ventures. Its operations range from land acquisition to planning, executing, constructing, and marketing projects. Moreover, the company deals with leasing, power generation, maintenance services, hospitality, and recreational services, all of which support its real estate business.

Financials

When looking at the latest financial performance, the company reported a muted increase in revenue from Rs 1,521 crore in Q3 FY24 to Rs 1,529 crore in Q3 FY25. This was accompanied by a massive 61 percent increase in net profits from Rs 656 crore to Rs 1,059 crore during the same period

Small cap stock plans to expand its capacity- keep on watchlist

Small cap stock plans to expand its capacity- keep on watchlist

by | Mar 17, 2025 | Case Study

This small-cap stock engaged in manufacturing advanced CNC machines, with a strong focus on innovation, including 5-axis machines and AI-driven solutions for global markets, in focus after plans to expand its capacity by 3,000-4,000 machines by FY26

Stock Price Movement:

With a market capitalization of Rs. 22,967.46 crore, the shares of Jyoti CNC Automation Limited were currently trading at Rs. 1009.90 per equity share, rising nearly around 0.87 percent from its previous day’s close price of Rs. 1001.20.

Company Overview:

Jyoti CNC Automation was established in 1989 and operates with manufacturing facilities in Rajkot, India, and Strasbourg, France. The company offers a wide range of over 200 product variants and has installed more than 130,000 machines globally. It is a leader in the CNC automation industry, providing advanced solutions worldwide.

Management Guidance:

For FY25, Jyoti CNC Automation expects a strong topline growth of 40-50 percent. They aim to maintain profit margins between 25-27 percent. The company anticipates that EMS will contribute 20-25 percent of sales in FY26. The company expects an order inflow of Rs. 1,600-1,700 crore in FY25.

Jyoti CNC plans to expand its capacity by 3,000-4,000 machines by Q3 FY26, focusing on the aerospace, defense, and EMS sectors. The company’s order book as of December 2024 stands at Rs. 4,360 crore, with an expected execution time of 2.5 years.

The company invested 6.36 percent of its revenue in research and development (R&D), driving innovations such as 5-axis machines and AI-powered solutions. The company is focusing on expanding its exports to markets in the USA, China, and Southeast Asia/Africa, with the goal of capturing a 5 percent market share in these regions.

Segment Revenue Breakdown (Q3 FY25):

In Q3 of FY25, the company’s revenue was mainly driven by the Aerospace segment, which contributed 49 percent. The Auto and Auto Components segment followed with 16 percent, while General Engineering brought in 21 percent. EMS accounted for 10 percent, and other segments contributed 4 percent to the overall revenue.

New Product Launches:

In January 2025, the company launched 7 new models, showcasing its commitment to innovation. These include the GU8, a 5-axis Gantry type machining center, the AWT for alloy wheel turning, and the BTM with twin spindles and gantry automation.

Additionally, the ATM 200 caters to the EV segment, while the HP 4000 and 6000 are high-performance horizontal machining centers. The TachyonBeta, the fastest 5-axis machining center, also made its debut.

Capacity Expansion:

As of December 2024, the company currently has an installed capacity of 6,000 machines per year in India and 120 machines per year in France. Looking ahead, the company plans to expand its capacity by an additional 10,000 machines over the next two years.

Order Book: 

In Q3 FY25, the company received an order inflow of Rs. 492.8 crores. This includes Aerospace (34 percent), Auto and Auto Components (25 percent), General Engineering (36 percent), Die and Mould (1 percent), and Others (4 percent). As of December 31, 2024, the total consolidated order book stood at Rs. 4,359.7 crores.

Recent quarter results:

Jyoti CNC Automation Limited’s revenue has increased from Rs. 378V crore in Q3 FY24 to Rs. 450 crore in Q3 FY25, which has grown by 19.05 percent. The net profit has also grown by 66.67 percent from Rs. 48 crore in Q3 FY24 to Rs. 80 crore in Q3 FY25.

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on AG Investment are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. AG Investment or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Monopoly stock keep an eye- high return ratio of upto 55% to

Monopoly stock keep an eye- high return ratio of upto 55% to

by | Mar 17, 2025 | Featured

Monopoly stocks refer to shares of companies that dominate their industry or market, with little to no competition. These companies often have a strong market presence, pricing power, and the ability to generate consistent profits.

Higher return ratios are financial metrics that measure a company’s ability to generate profits relative to its equity, assets, or investments. Key ratios include Return on Equity (ROE), Return on Assets (ROA), and Profit Margins. Higher values of these ratios indicate better profitability, efficient use of resources, and strong financial performance, making such companies attractive to investors.

It indicates that the investment is providing higher profits compared to the amount of risk or capital invested. A higher return ratio is often seen as a positive sign for investors, as it suggests more efficient and profitable investments.

Coal India Ltd 

Coal India is the largest coal producer in the world, accounting for over 80 percent of India’s coal production. It holds a monopoly in the coal mining industry in India, providing fuel to power plants and industries across the country.

The stock has a strong ROE of 38 percent and a robust ROCE of 41.6 percent. Additionally, the company’s ROA stands at 13.7 percent, reflecting efficient asset utilization.

Indian Railway Catering & Tourism Corporation Ltd

IRCTC is the exclusive provider of online railway ticketing and catering services for Indian Railways. It has a monopoly in online train ticketing and catering services for the Indian Railway network.

The stock has a strong ROE of 40.4 percent and a robust ROCE of 53.8 percent. Additionally, the company’s ROA stands at 20.6 percent, reflecting efficient asset utilization.

CDSL (Central Depository Services Limited)

CDSL is one of the two depositories in India, offering dematerialization services for securities. It has a significant market share in the Indian securities market, and though it faces competition from NSDL, it holds a dominant position in the sector.

The stock has a strong ROE of 31.3 percent and a robust ROCE of 40.3 percent. Additionally, the company’s ROA stands at 25.9 percent, reflecting efficient asset utilization.

HAL (Hindustan Aeronautics Limited)

HAL is a state-owned aerospace and defense company in India, primarily involved in the design and manufacture of aircraft, helicopters, and defense systems. It has a monopoly in the Indian defense aviation sector, being the main supplier for the Indian Armed Forces.

The stock has a strong ROE of 28.9 percent and a robust ROCE of 38.9 percent. Additionally, the company’s ROA stands at 10.1 percent, reflecting efficient asset utilization.

CAMS (Computer Age Management Services) Ltd

CAMS is a leading provider of registrar and transfer agent (RTA) services to mutual funds in India. It holds a dominant position in the mutual fund industry, with a significant market share in RTA services.

The stock has a strong ROE of 40.5 percent and a robust ROCE of 49.8 percent. Additionally, the company’s ROA stands at 28.2 percent, reflecting efficient asset utilization.

IEX  (Indian Energy Exchange) Ltd

IEX is the leading power exchange in India, where electricity is traded in the spot market. It has a monopoly in the electricity trading market, offering platform-based electricity trading services to utilities, businesses, and traders.

The stock has a strong ROE of 37.7 percent and a robust ROCE of 50 percent. Additionally, the company’s ROA stands at 20.5 percent, reflecting efficient asset utilization.

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on AG Investemnt are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. AG Investemt or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.