Power Mech share price surges 6% after bagging BHEL order worth ₹579 crore; do you own?

Power Mech Projects share price rallies as much as 6 per cent on Monday's trading session after the company bagged ₹579 crore order from Bharat Heavy Electricals Ltd (BHEL) for civil structural and architectural works in Jharkhand.

At 9:20 am, Power Mech stock was trading at ₹2,304.50 apiece on National Stock Exchange (NSE).

Order detail

The project scope covers various civil works for the 2x800 MW DVC Koderma (KTPS) Phase-II in Jharkhand, as stated in a stock exchange filing.

It includes leveling and grading of the entire power block area, encompassing the transformer yard and flue gas desulfurization system, along with land leasing and preparation for labor accommodations. The project also involves constructing restrooms for operation and maintenance workers, as well as sheds for construction workers.

As part of infrastructure development, the project includes laying foundations for key structures such as the power house, boiler, electrostatic precipitator, mill, bunker, and fan. Additionally, it covers paving roads and walkways, along with building a service facility equipped with parking spaces.

The project also includes installing various utility and support systems, such as a rooftop solar system in the power block area, sewage water lines in the power generation zone, and civil works for low-pressure piping and fire-fighting systems. Additionally, it involves constructing pipe racks and cable racks, underground cables, wire duct civil works, and other essential infrastructure.

Power Mech is anticipated to complete the project in less than three years. Last month, the company secured another contract for the Koderma project.

The Hyderabad-based engineering and infrastructure construction firm holds an order book of ₹4,242 crore as of the December quarter. It specializes in offering end-to-end services in the power sector, including the erection, testing, and commissioning of power plants.

On Friday, shares surged nearly 6 per cent to close at ₹2,168.85, outperforming the benchmark BSE Sensex, which recorded a 0.73 per cent gain ahead of the announcement.

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