Power Mech shares snap 6-day losing run, jump 4% on Rs 355 crore order win. Details here

Shares of Power Mech Projects Ltd traded higher in Tuesday's session, pausing their six-day losing streak. The stock surged 4.22 per cent to hit a day high of Rs 3,728 over its previous close of Rs 3,577.05. At today's high price of Rs 3,728, the scrip was down 26.36 per cent from its 52-week high of Rs 5,062.25, hit on July 31 this year. That said, the counter turned into a multibagger by rallying 137.27 per cent from its one-year low of Rs 1,571.20, a level seen on February 3, 2023.

Power Mech's stock saw a sharp rebound in the fag-end trade today after the company announced that it has received an order worth Rs 355 crore from Bharat Heavy Electricals Ltd (BHEL).

A total of 2,048 shares were last seen changing hands today on BSE. The figure was higher than the two-week average volume of 1,811 shares. Turnover on the counter came at Rs 73.87 crore, commanding a market capitalisation (m-cap) of Rs 5,751 crore.

On technical setup, the counter was trading lower than the 5-day, 10-, 20-, 30-, 50- and 100-day simple moving averages (SMAs) but higher than the 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 30.98. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 24.55 against a price-to-book (P/B) value of 4.85.

The scrip has an analyst target price of Rs 4,551, Trendlyne data showed, suggesting a potential upside of 26 per cent in a year. It has a one-year beta of 1.37, indicating high volatility on the counter.

Bourses BSE and NSE have put the securities of Power Mech under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The ASM (additional surveillance measure) is an initiative by the Securities Exchange Board of India (Sebi) and exchanges where the bourses share a listing of securities that are currently getting monitored due to factors like price fluctuation, volatility, volume variance, etc. Stocks that are shortlisted for inclusion on the ASM list serve as a warning to investors about unusual price movement.

The shortlisting of securities under ASM is purely on account of market surveillance and it shouldn't be construed as an adverse action against the concerned company or entity, the bourses further mentioned.

Meanwhile, Indian equity benchmarks were down today, dragged by banks, automobiles, pharma and energy stocks.

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