Smallcap multibagger Power Mech Projects rallies 5% on bagging Rs 499 cr order

Shares of Power Mech Projects surged over 5 per cent in Friday's trade after the company's joint venture with RITES bagged an order worth Rs 499.41 crore from the Bangalore Metro Rail Corporation (BMRCL).

Following the development, the stock surged 5.48 per cent to hit a high of Rs 1,922.65 on BSE. The stock had hit a 52-week high of Rs 2,108 on October 10, and is now a kissing distance away from the level. With Friday's gains, the scrip was sitting on a 104.85 per cent return year-to-date.

From May 2020 level, the scrip is up over 510 per cent. 

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In a brief filing, the engineering, designing & construction company said the project has been awarded to RITES- PMPL and the order is for construction of Depot cum workshop at Challaghatta in Reach-2 extension of Bangalore Metro Rail Project, Phase-2.

"The company has received a Letter of Award (LoA) worth Rs 499.41 crore from Bangalore Metro Rail Corporation Ltd (SMRCL)," the BSE filing said. The company commands a market capitalisation of Rs 2,681.26 crore and is a part of BSE Smallcap index.

The company informed stock exchanges about the development post market hours of Thursday.

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