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.
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).
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.
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.