Power Mech Projects Ltd. share price target

Power Mech offers strong multi-year growth visibility with a YTD order book of over 9.7x TTM revenues and healthy inflows across EPC, O&M, and BOP segments. The mining (MDO) business is set to become a key profitability driver, scaling from 250cr in FY26 to 2,000cr annually by FY28. While thermal power continues to support order book growth, diversification into steel plants, railways, data centers, and renewables adds new growth levers. With margin...

Power Mech (POWM) delivered a good first half, with its adj. revenue/EBITDA up 10%/13% YoY. Historically, it has been delivering a much better H2 – in a full year, POWM has been doing ~2.5x its H1 revenue (in last three years).

ting the drag on margins. Resultantly, gross margins stood at 29.1%, registering a 68 bps expansion. Employee costs fell to 13.2% from 15.1% in the same quarter last year, thereby bolstering an EBITDA margin expansion of 194 bps to stand at 13.2%. Profit After Tax registered 31% YoY growth to stand at Rs.805.50cr. Despite higher depreciation (32% increase), finance costs (35% increase), and a jump...

Power Mech reported a muted Q1FY26. Post-adjustment of the exceptional item (INR 2.9bn in revenue), revenue stood at INR 10bn (flat YoY), EBITDA was at INR 1.2bn (+6% YoY) and adjusted profit of INR 0.5bn (-18% YoY). Reported profit grew 31% YoY to INR 0.8bn.

Power Mech Projects Limited is a company that offers a wide range of services in both the power and non-power sectors. They are the biggest service provider in operations and maintenance (O&M) and have integrated their services both forward and backward.

EBITDA margin improved to 10.6% (vs 5% in the previous quarter last year) due to lower employee expenses and material costs. Higher other income (182% YoY) and the lower tax rate of 23.9% supported PAT to rose to Rs31cr YoY (vs. Rs33cr loss in Q1FY21). Management expects execution to ramp up going forward and guided Rs1,400cr of revenue in H2FY22 led by strong tender pipeline. We revised our rating to Accumulate Due to the recent uptick in...

Power Mech Projects Ltd is a leading infrastructure-construction company based in Hyderabad with global presence. Q4FY21 revenue grew by 27% YoY backed by strong execution in O&M; (29% YoY) and Civil business (75% YoY). Order book remains healthy at Rs7,333cr (3.9x FY21 revenue) led by strong inflow of Rs4,638cr in FY21, which provides revenue visibility for the next two to three years....

Focus on O&M; and Civil orders to drive growth Power Mech Projects Ltd is a leading infrastructure-construction company based in Hyderabad with global presence. Company has an order backlog of Rs.7,353Cr (as on 16th Feb 2021), which shows revenue visibility for next 3 years. Company enjoys market leadership position in power O&M; (Operations and Maintenance) and erection business with a market share of 55%-60%. Diversification of business to non power segment, especially civil (including railway, petro chemical, water etc) has helped the company to be in the growth track ....

Whilst PMPL's EBITDA margin marginally declined by 25bps YoY to 12.8% owing to sales mix, it remains healthy due to higher contribution of international projects, high-margin Civil & Other Works and O&M; business. Looking ahead, the Management expects margin to improve owing to shift in revenue-mix to high-margin O&M; business and growth in non-power business. Its reported PAT grew by 67% YoY to Rs284mn. Total consolidated debt stood at Rs2.8bn as of 2QFY19-end vs. Rs 3.1bn as of 1QFY19-end with net debt/equity ratio coming in at 0.2x, which provides a significant headroom for growth. As the Management is confident of utilising internal...

Good order inflows, growth traction in place Power Mech Projects Ltd (PMPL) for Q1FY19 on a consolidated basis reported good numbers. Revenue grew ~29% YoY to 462 crore, on the back of better order execution. Revenue from erection segment (39% of Q1FY19 revenue) grew 26%, operation & maintenance (O&M; -28%) grew 6%, civil (31%) grew 60% and electrical works (2%) grew 220%. EBITDA grew 32% to 61 crore, with margins expanding 34bps to 13.2%, due to better project mix. Net profit grew 34% to 24 crore. As of 30 Jun'18 debt stood at 310 crore (vs 274 crore as of 31 Mar'18)....

Consolidated revenue of Power Mech Projects (PMPL) surged by 28.9% YoY to Rs4.6bn, aided by higher revenue from ETC (+ 25.9% to Rs1.8bn) and Civil & Other Works (+ 60.2% to Rs1.4bn business. Further, revenue from O&M; segment rebounded by 5.8% YoY to Rs1.2bn post the Rs200mn impact led by temporary project shutdown in 4QFY18. Looking ahead, we believe dominant position in power EPC business, impressive order book and superior execution capabilities will drive PMPL's profitability. We maintain our BUY recommendation on the stock with an upwardly revised Target Price of Rs1,178 (from Rs1,080 earlier). Robust Revenue on Improved Execution...

PMPL's EBITDA margin expanded by 111bps YoY to 13.1% owing to higher contribution of international projects, high-margin Civil & Other works and O&M; business. While EBITDA grew by 44.9% YoY to Rs641mn, PAT surged by 48% YoY to Rs299mn, above our estimate. Looking...

Healthy Revenue Visibility on Improving Execution & High Order Book Power Mech Projects (PMPL) continued to deliver a healthy performance in 3QFY18 as well. Its consolidated revenue rose by 12.9% YoY to Rs3.5bn led by strong growth in Civil & Other Works and O&M; business segments. Despite a flat YoY growth, revenue from ETC segment improved on QoQ basis to Rs1.4bn, as the issues relating to GST-led execution delay has gradually ebbed out. Looking ahead, we believe that dominant position in power EPC business, impressive order book and superior execution capabilities will drive PMPL's profitability. Rolling over our estimates to FY20E, we maintain our HOLD recommendation on the stock with a revised...

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...