Power Mech Projects shares snap 3-day losing streak, close 4% higher on ₹306-crore order win
Upstox
2 min read • Updated: March 14, 2024, 7:58 PM
Summary
The nature of the order involves executing civil construction and electrical works, with a timeline of 30 months for completion.
Power Mech Projects Ltd shares closed 4% higher on Thursday, March 14, ending a three-day losing streak after the company announced bagging an order worth ₹306 crore from Indian Railways.
In a filing to the stock exchanges, Power Mech Projects said that it has secured an order worth ₹305.81 crore from South East Central Railway. The scope of work involves construction of an electrified fourth Railway BG Line between Rajnandgaon-Dongargarha and Bhilai-Durg link block station in Chhattisgarh on an engineering, procurement and construction (EPC) basis.
The nature of the order involves executing civil construction and electrical works, with a timeline of 30 months for completion.
After the announcement, shares of Power Mech Projects rallied as much as 4.5% to an intraday high of ₹4,800 apiece on NSE. However, the stock pared some early gains and closed 4.1% higher at ₹4,780 apiece.
In the past one year, Power Mech Projects shares have gained 113.88% and more than 11% so far this year (year-to-date).
On Wednesday, March 13, the infrastructure developer announced incorporation of a new wholly-owned subsidiary called PMTS Private Limited. This subsidiary was incorporated to design and develop technologies required by construction enterprises and other industries, including the adoption of ERP and monitoring systems.
Earlier this month, the company secured an order worth ₹658.57 crore from the Madhya Pradesh Water Resources Department. This order included two projects — construction of Upper Burhner Project Dam and pressurised pipe irrigation network for ₹541.62 crore, and boiler and ESP package for overhaul for Akrimota Thermal Power Station of Gujarat Mineral Development Corporation, valued at ₹116.95 crore.
In February, the company also received another order worth ₹396.25 crore from South East Central Railway for construction of an electrified fourth railway BG line in Chhattisgarh, between Dadhapara-SelahaDagori and Nipania-Bhatapara-Hathbandh stations.