Power Mech Projects jumps 4% as company bags Rs 1,009 crore JSW Thermal Energy contract

The contract involves executing civil and structural works for the Boiler, Turbine and Generator (BTG) area of a 2×800 MW thermal power project at Salboni, West Bengal. The project is expected to be completed within 36 months from the commencement of work.

According to the company’s disclosure, the order was awarded by a domestic entity and carries a total contract value of Rs 1,008.90 crore, inclusive of GST.

The development strengthens Power Mech Projects’ order book and reinforces its position in India’s power infrastructure and EPC segment. The company also clarified that neither its promoters nor promoter group entities have any interest in JSW Thermal Energy Limited, and the contract does not fall under related-party transactions.

Investors cheered the announcement, pushing the stock higher as the sizeable order is expected to provide strong revenue visibility over the next three years.

Stock performance and technical outlook

Power Mech Projects has delivered impressive returns to shareholders, rallying around 45% over the past three months and an astounding 726% over the last five years. The company currently commands a market capitalisation of approximately Rs 8,978 crore, while its 52-week high stands at Rs 3,415.

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On the valuation front, the stock trades at a price-to-earnings (P/E) ratio of 24.67 and a price-to-book (P/B) ratio of 3.47.

From a technical perspective, the stock continues to exhibit strong momentum. Its 14-day Relative Strength Index (RSI) stands at 66.4, approaching the overbought zone but still below the key threshold of 70. Additionally, Power Mech Projects is trading above all eight of its tracked simple moving averages (SMAs), indicating a firmly bullish trend.

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