Power Mech Projects to consider issue of bonus shares on August 22; stock up 6%

Power Mech Projects, the civil construction company, said on Wednesday, August 14, that the company's board will consider the proposal for the issue of bonus shares on August 22.

The company said in its regulatory filing, "We wish to inform you that a meeting of the Board of Directors of the Company will be held on Thursday, the 22nd day of August, 2024, inter alia, to consider the proposal for the issue of bonus shares to the equity shareholders of the company."

On Monday, the company posted a 21% rise in consolidated net profit to ₹61.72 crore for the June 2024 quarter on higher revenues. It had reported a net profit of ₹50.96 crore in the April-June period of the preceding 2023–24 financial year, the company said in an exchange filing.

The company's revenues surged to ₹1,007.39 crore from ₹865.13 crore in the year-ago quarter.

As per the company's website, Kishore Babu, a technocrat, founded the company in 1999. It set foot in the power sector with a modest business, undertaking the overhauling and maintenance of gas turbines for Tata at Trombay.

The company is part of the small-cap basket.

Power Mech Projects stock performance

Shares of the company have jumped 630% in the past five years. In comparison, the NIFTY50 has gained 119% during the period.

Recently, as per news reports, the company secured an operation and maintenance (O&M) contract worth ₹1.1 billion from Dangote Petroleum Refinery & Petrochemical FZE in Nigeria. The contract encompasses the O&M of a 400 MW captive power plant and related utilities at the Dangote Refinery.