Power Mech Projects shares fall 3% despite profit zooming 20% in Q2

Power Mech Projects shares fell 2.6 percent in early trade on November 13 despite the infrastructure company reporting a 20 percent year-on-year jump in consolidated net profit.

Net profit clocked in at Rs 51.3 crore in the quarter ended September FY24, backed by operating and topline numbers.

Power Mech Projects revenue from operations grew by 20.9 percent YoY to Rs 932.5 crore in Q2 FY24. The basic earnings per share (EPS) from continuing operations came in at Rs 34.4 over Rs 29.78 in the corresponding quarter a year ago.

On October 31, Power Mech Projects won a Rs 355 crore order from state-owned Bharat Heavy Electricals Limited (BHEL).

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Following the end of the second quarter in FY24, Power Mech Projects issued and allotted 90 lakh equity shares to Qualified Institutional Buyers. The shares had a face value of Rs 10, at a premium of Rs 3,871.17 each, aggregating to Rs 350 crore on October 23.

Shareholding, stock price movement

So far in 2023, Power Mech Projects shares have jumped 90.56 percent, while the frontline index Nifty 50 gained 6.8 percent during the same time period.

However, on a technical basis, the stock sees very high volatility as indicated by the one-year beta of 1.48 percent. The RSI of 55.6 shows that the counter is neither overbought nor oversold. Power Mech Projects is trading above all its key moving-averages save for the 50-EMA.

The promoters have marginally decreased their holdings from 64.12 percent in the previous quarter to 64.05 percent for the quarter ended September. FIIs have increased holdings to 4.16 percent as the FPI investors increased from 97 to 104 in the quarter. DIIs owned 18.1 percent of the company’s shares, while the public held 16.9 percent.