Power Mech Projects shares gain on contract win from BHEL 

Power Mech Projects Ltd's shares rose 8.15% intraday to Rs 2,347, their highest since February 1, following a Rs 579 crore contract win from Bharat Heavy Electricals Ltd (BHEL) for the DVC Koderma Phase-II project.

Power Mech Projects stock marked its highest point since February 1. This significant project relates to civil, structural, and architectural work on the 2x800 MW DVC Koderma Phase-II in Jharkhand. The scope of work for Power Mech includes extensive land leveling and grading of the power block area, setting up the transformer yard, and flue gas desulfurisation facilities. Additionally, the contract mandates the provision of essential infrastructure such as land leasing and construction of restrooms for operation and maintenance personnel, as well as worker hutments and construction sheds.

The Power Mech stock, which initially surged to these new highs, later saw its gains pared back to a 4.49% increase, closing at Rs 2,267.45. This performance stands against the backdrop of a 0.47% rise in the NSE Nifty 50 Index. Over the past year, the stock fallen 5% decline, compounded by a 16.37% drop year-to-date. Despite these challenges, the company's shares have witnessed a trading volume 11 times its 30-day average, with a relative strength index of 68, indicating potential investor interest.

Beyond the primary construction tasks, the project includes installing crucial utility systems such as rooftop solar panels, sewage lines, and civil works for low-pressure piping and firefighting systems. Additional tasks involve constructing pipe racks, cable ducts, and other necessary infrastructure elements. Power Mech, which has an order book worth Rs 4,242 crore as of the December quarter, is expected to complete this comprehensive project in under three years. The Hyderabad-based company specialises in the power sector, providing services including erection, testing, and commissioning of power plants. The recent contract win adds to Power Mech's portfolio and reaffirms its capability to handle large-scale infrastructure projects.