POWERMECH: Large EPC Order Will Drive Stronger Prospects Ahead

Analysts have raised their price target on Power Mech Projects from ₹2,370 to ₹2,800. They cited expectations of slightly faster revenue growth, modestly higher profit margins, and support from a lower implied discount rate and marginally higher future valuation multiples.

What's in the News

• Secured a large scale EPC order worth over INR 25,000 million, excluding GST, from Bharat Heavy Electricals Limited for balance of plants at the 1 x 800 MW Singareni Super Thermal Power Project, Stage II, in Mancherial, Telangana (client announcement)
• Issued earnings guidance for financial year 2026, targeting revenue of INR 65,000 million (corporate guidance)
• Scheduled a board meeting on November 10, 2025, to review unaudited Q2 and half year FY 2025 results and to consider an Employee Stock Option Plan for eligible employees and group companies, subject to shareholder approval via postal ballot (board meeting notice)
• Called a special or extraordinary shareholders meeting to be conducted via postal ballot in India on December 20, 2025 (shareholder meeting notice)

Valuation Changes

• The consensus analyst price target has risen moderately from ₹2,370 to ₹2,800 per share, reflecting a higher estimated fair value.
• The discount rate has fallen slightly from 16.06 percent to 15.65 percent, indicating a marginally lower perceived risk profile or cost of capital.
• The revenue growth assumption has increased modestly from about 21.47 percent to 22.84 percent, implying slightly faster expected top line expansion.
• The net profit margin forecast has improved slightly from around 8.56 percent to 9.12 percent, suggesting better expected profitability on future revenues.
• The future P/E multiple has edged up from about 13.56x to 13.87x, indicating a small increase in the valuation multiple applied to projected earnings.