Power Mech Projects Shares Surge After Securing ₹1,009 Crore JSW Order

Power Mech Projects saw its stock price jump by nearly 4% during Monday's trading session following a massive contract win. The company has secured a significant order worth ₹1,008.90 crore from JSW Thermal Energy Limited, bolstering its presence in India's thermal power sector.

Major Infrastructure Win at Salboni, West Bengal

The newly announced contract is a substantial boost for Power Mech Projects' Engineering, Procurement, and Construction (EPC) portfolio. The order involves the execution of critical civil and structural works for the Boiler, Turbine, and Generator (BTG) area of a large-scale thermal power project.

The project, located in Salboni, West Bengal, is a 2x800 MW thermal power plant. Power Mech Projects is tasked with completing the scope of work within a strict timeline of 36 months from the commencement date. The total contract value, which includes GST, stands at ₹1,008.90 crore, providing the company with strong revenue visibility over the next three years.

Strengthening the Order Book and Market Position

This domestic contract reinforces Power Mech's standing in the power infrastructure segment. Notably, the company clarified in its regulatory disclosure that the deal is not a related-party transaction, as neither its promoters nor promoter group entities have any interest in JSW Thermal Energy Limited.

The scale of this order contributes significantly to the company's growing order book, a key metric for EPC players. By securing high-value projects like this, Power Mech continues to demonstrate its capability to handle large-scale utility-grade infrastructure, which is essential for the evolving Indian energy landscape.

Stock Performance and Bullish Technical Outlook

Investors reacted positively to the news, sending the share price up 3.59% to ₹2,941.80. The company’s stock has been on a massive growth trajectory, delivering a 45% return over the last three months and an extraordinary 726% return over the past five years. With a current market capitalization of approximately ₹8,978 crore, the company is showing robust fundamental strength.

From a technical analysis standpoint, the stock maintains a firmly bullish trend. It is currently trading above all eight of its tracked simple moving averages (SMAs). While its 14-day Relative Strength Index (RSI) of 66.4 suggests the stock is approaching the overbought zone (70), it still has room for momentum. Currently, the stock trades at a P/E ratio of 24.67 and a P/B ratio of 3.47, reflecting market confidence in its valuation.

Key Takeaways

  • Massive Order Win: Power Mech Projects secured a ₹1,008.90 crore contract from JSW Thermal Energy for a 2x800 MW project in West Bengal.
  • Revenue Visibility: The 36-month project timeline ensures strong revenue inflows and order book depth for the next three years.
  • Strong Market Momentum: The stock has delivered a 726% return over five years and is currently trading above all its key moving averages.