Synopsis: Power Mech Projects rises 5% as subsidiary PM Green wins ₹ 3,126 crore WBSEDCL order for 250 MW/1,000 MWh BESS at Goaltore, with optional 250 MW at Durgapur, including 15-year O&M.
The shares of a Small-Cap company, which specializes in engineering, procurement, and construction (EPC) for large-scale power and infrastructure projects, are in focus after securing a work order worth Rs. 3,126 Crores from West Bengal State Electricity Distribution Company Limited (WBSEDCL).
With a market capitalization of Rs. 7,637.23 Crores on Friday, the shares of Power Mech Projects Ltd jumped upto 4.5 percent upon making a high of Rs. 2459.00 compared to its previous closing price of Rs. 2353.35.
What Happened
Power Mech Projects Limited has announced that its wholly owned subsidiary, PM Green Private Limited, has received a significant order from West Bengal State Electricity Distribution Company Limited (WBSEDCL).
The order is for the development of a 250 MW / 1,000 MWh standalone Battery Energy Storage System (BESS) at Goaltore, Paschim Medinipur, West Bengal, under a Build-Own-Operate (BOO) model.
The order includes an additional “Greenshoe” option for another 250 MW / 1,000 MWh at the Durgapur Project Limited campus in Durgapur, West Bengal. The project encompasses the complete design, financing, engineering, procurement, construction, operation, and maintenance of the BESS facilities, with a 100% off-take guarantee from WBSEDCL.
The scheduled commissioning period for the project is 18 months from the signing of the Battery Energy Storage Purchase Agreement (BESPA), followed by an operation and maintenance period of 15 years (180 months). The total value of the order, including the Greenshoe option, is Rs. 3,126 crores (excluding GST).
Financials & Others
The company’s revenue rose by 19.54 percent from Rs. 1,035 crores to Rs. 1,238 crores in Q2FY25-26. Meanwhile, Net profit rose from Rs. 70 crores to Rs. 78 crores in the same period.
The company shows strong efficiency with a ROCE of 22.9% and ROE of 16.3%, alongside a conservative debt-to-equity of 0.42. Its PEG ratio of 0.73 indicates potential undervaluation. It has delivered robust profit growth, with a 20.1% CAGR over the last five years, reflecting strong fundamentals and consistent performance.
Power Mech is a leading industrial and infrastructure services provider and India’s market leader in O&M services, managing over 75 GW across industrial, infrastructure, and power sectors.
The company offers diversified engineering and infrastructure solutions, underpinned by strong technical expertise. From power-plant construction to metro, water, and civil infrastructure projects, Power Mech brings 25 years of multi-sector project delivery with proven engineering depth and reliability.
The company has a domestic client base that includes prominent organizations such as NTPC, BHEL, Doosan, Reliance Industries, Siemens, Tata Power, Adani, Vedanta, Jindal Steel & Power, ONGC, and Indian Oil.
Additionally, it serves important power sector entities like Power Grid Corporation of India, Central Organisation for Railway Electrification (CORE), and various state electricity boards and infrastructure companies.
On the international front, the company’s clients span across various industries and regions, including ADNOC, GE Alstom, Mitsubishi, Dangote, Hyundai Heavy Industries, SepcoIII, Romco and others.
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