Power Mech Projects (PMPL) has delivered a healthy performance in 2QFY18. Its consolidated revenue rose by 6.3% YoY to Rs3.5bn (vs. our estimate of Rs3.6bn) owing to strong growth in Civil & Other Works and O&M; businesses. However, ETC revenue dipped by 15.5% YoY to Rs1.4bn owing to GST-led execution delay and lower domestic thermal power capacity addition. Looking ahead, we believe dominant position in power EPC business, impressive order book and superior execution capabilities will drive PMPL's profitability. Assigning higher multiple (11x P/E of FY19E from 9x earlier) owing to strong traction in order book and improving margin...