Power Mech Projects Ltd. (POWERMECH) AI Stock Analysis

• Market Cap: ₹84.25B
• Dividend Yield: 0.05%
• Average Volume (3M): 6.67K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.86
• Revenue Growth: 26.93%
• EPS Growth: 21.98%
• Country: IN
• Employees: 10,946
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 21.00
• Shares Outstanding: 31,616,293
• 10 Day Avg. Volume: 8,416
• 30 Day Avg. Volume: 6,667
• PEG Ratio: 0.95
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -52.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,927.00
• Price Target Upside: 9.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ₹2,927.00 ▲(9.84% Upside)

Power Mech Projects Ltd. scores a 64, driven primarily by its strong financial performance, particularly in revenue growth and profitability. However, technical analysis indicates a bearish trend, and valuation metrics suggest the stock is fairly valued. The lack of earnings call data and corporate events limits further insights.

Power Mech Projects Ltd. Business Overview & Revenue Model

Company Description

Power Mech Projects Ltd. (POWERMECH) is a leading service provider in the engineering and construction sector, specializing in power and infrastructure projects. The company operates across various sectors including power generation, transmission, and distribution, as well as in the oil and gas, water, and renewable energy industries. POWERMECH's core services encompass project management, engineering, procurement, and construction (EPC) solutions, alongside maintenance and operations support for power plants and related facilities.

How the Company Makes Money

Power Mech Projects Ltd. generates revenue primarily through its engineering, procurement, and construction (EPC) contracts in the power and infrastructure sectors. The company engages in large-scale projects where it is compensated for delivering comprehensive solutions, including project management, engineering design, procurement of materials, and construction services. Key revenue streams include contracts for power generation projects, maintenance services for existing plants, and operations management. Additionally, POWERMECH may benefit from partnerships with governmental bodies and private enterprises for infrastructure development, which can provide stable long-term contracts and recurring revenue. The company's strong reputation and expertise allow it to secure new contracts and maintain existing client relationships, further contributing to its earnings.

Power Mech Projects Ltd. Financial Statement Overview

Summary

Power Mech Projects Ltd. has demonstrated strong financial performance with significant revenue growth and improved profitability margins. The balance sheet is solid, supported by healthy equity and manageable leverage. However, cash flow management poses a challenge, with negative free cash flow in the latest year. The company should prioritize improving operational cash flow to sustain its growth trajectory.

Income Statement

Power Mech Projects Ltd. shows strong revenue growth, with a consistent increase in total revenue over the last five years. The gross profit margin has improved significantly, reaching approximately 25.9% in the most recent year. The net profit margin also improved to 6.2%, indicating better cost management and operational efficiency. However, the EBIT and EBITDA margins suggest room for improvement in operating efficiency. Overall, the income statement reflects a robust growth trajectory and enhanced profitability.

Balance Sheet

The company's balance sheet demonstrates strong equity growth, with a healthy equity ratio of approximately 46.8% in the latest year. The debt-to-equity ratio of 0.34 indicates moderate leverage, providing financial stability. Return on equity has improved to 15.1%, showcasing effective use of equity. However, the company should monitor its total liabilities to ensure sustainable growth. Overall, the balance sheet is stable with a good balance between debt and equity.

Cash Flow

Power Mech Projects Ltd.'s cash flow statement indicates challenges in free cash flow, which turned negative in the most recent year. The operating cash flow to net income ratio suggests limited conversion of net income into cash. While the company has managed financing activities effectively, it needs to focus on enhancing cash flow from operations to support growth and investment activities. Overall, the cash flow position requires improvement to ensure liquidity and operational sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.20B	52.34B	42.07B	36.01B	27.10B	18.84B
Gross Profit	14.44B	13.54B	12.02B	9.89B	7.43B	3.90B
EBITDA	6.72B	6.04B	4.98B	4.20B	2.86B	572.70M
Net Income	3.19B	3.26B	2.48B	2.09B	1.39B	-456.30M
Balance Sheet
Total Assets	0.00	46.15B	35.68B	30.54B	25.97B	22.61B
Cash, Cash Equivalents and Short-Term Investments	5.93B	5.93B	524.00M	448.60M	759.40M	161.10M
Total Debt	0.00	7.35B	3.96B	4.77B	5.31B	5.15B
Total Liabilities	-21.83B	24.32B	17.28B	17.78B	15.51B	13.52B
Stockholders Equity	21.83B	21.60B	18.38B	12.75B	10.43B	9.05B
Cash Flow
Free Cash Flow	0.00	-1.62B	1.12B	1.29B	1.31B	953.10M
Operating Cash Flow	0.00	2.70M	2.05B	1.82B	1.75B	1.22B
Investing Cash Flow	0.00	-1.93B	-3.73B	-909.89M	-517.60M	-468.00M
Financing Cash Flow	0.00	2.32B	1.76B	-1.20B	-631.50M	-913.10M

Power Mech Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2664.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POWERMECH, the sentiment is Negative. The current price of 2664.8 is below the 20-day moving average (MA) of 2759.71, below the 50-day MA of 2966.23, and below the 200-day MA of 2738.07, indicating a bearish trend. The MACD of -75.06 indicates Negative momentum. The RSI at 36.53 is Neutral, neither overbought nor oversold. The STOCH value of 25.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:POWERMECH.

Power Mech Projects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	75 Outperform	₹52.86B	5.55	―	0.13%	-2.17%	17.20%
WABAG	69 Neutral	₹88.20B	28.77	―	0.28%	16.09%	22.20%
HGINFRA	66 Neutral	₹60.00B	13.58	―	0.22%	-9.81%	-19.80%
POWERMECH	64 Neutral	₹84.25B	26.42	―	0.05%	26.93%	21.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DBL	55 Neutral	₹79.38B	9.82	―	0.20%	-11.92%	141.80%
HCC	48 Neutral	₹49.74B	29.57	―	―	-29.25%	-66.38%