Power Mech Projects, which builds and maintains power plants, saw its shares jump 5.74% to ₹2,715 after winning a servicing contract from Adani Power. The ₹294 crore order is for overhauling power plant equipment.
This latest win adds to the company's growing order book in the power sector.
The big picture: From starting as a power plant specialist, Power Mech has grown into a broader infrastructure player.
The company now handles everything from industrial construction to mining projects, riding India's infrastructure growth wave.
By the numbers: Last quarter tells the growth story - revenue up 11% to ₹1,035 crores and profit up 31% to ₹69.51 crores. The stock has gained 21% this year, valuing the company at ₹8,592 crores.
Why this matters: This order from Adani Power is significant for two reasons:
- Shows Power Mech can win big contracts from major players
- Highlights growing maintenance needs in India's power sector
Looking ahead: While the Adani order is good news, keep an eye on:
- How quickly orders convert to revenue
- Working capital needs (currently takes 90 days to convert sales to cash)
- Growth in newer businesses beyond power
The bottom line: Power Mech's expansion from pure power plants to broader infrastructure is paying off.
The stock rise today reflects optimism about the new order, but the bigger story is about consistent execution and smart diversification.
