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Power Mech Projects Ltd.
(POWERMECH)
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Rating:70Neutral
Price Target:
₹3,062.00
▲(31.59% Upside)
Action:Downgraded
Date:06/13/26
The score is primarily driven by solid financial performance (strong growth and improved profitability/leverage) but capped by inconsistent cash conversion and volatile free cash flow. Technicals are supportive with a clear uptrend and positive momentum, while valuation is reasonable with a helpful dividend yield.
Positive Factors
Revenue scaling & profit turnaround
Multi-year revenue growth to ~60.6B and a shift from prior losses to stable sector-appropriate margins indicates durable commercial traction. This scale supports bidding for larger contracts, spreads fixed costs, and improves long-term earnings power assuming execution discipline continues.
Negative Factors
Weak cash conversion
Profits are not reliably translating into cash (FCF to net income ~0.22), signalling working-capital swings common in project businesses. Persistent weak cash conversion strains liquidity, raises reliance on external funding for growth, and can constrain capex or bid competitiveness over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scaling & profit turnaround
Multi-year revenue growth to ~60.6B and a shift from prior losses to stable sector-appropriate margins indicates durable commercial traction. This scale supports bidding for larger contracts, spreads fixed costs, and improves long-term earnings power assuming execution discipline continues.
Read all positive factors
Power Mech Projects Ltd. (POWERMECH) vs. iShares MSCI India ETF (INDA)
Market Cap
₹81.06B
Dividend Yield0.05%
Average Volume (3M)7.12K
Price to Earnings (P/E)22.6
Beta (1Y)1.89
Revenue Growth15.81%
EPS Growth11.50%
CountryIN
Employees10,946
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)115.13
Shares Outstanding31,616,293
10 Day Avg. Volume6,334
30 Day Avg. Volume7,123
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)2.35
Price to Sales (P/S)0.98
P/FCF Ratio62.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)142.9
Revenue Forecast (FY)₹72.71B
Power Mech Projects Ltd. Business Overview & Revenue Model
Company Description
Power Mech Projects Limited operates both domestically in India and internationally, offering a broad spectrum of services across the power generation and broader infrastructure sectors. Its primary focus includes the installation, rigorous testin...
How the Company Makes Money
Power Mech Projects Ltd. makes money mainly by executing contracted industrial projects and providing ongoing plant services, earning revenue that is typically tied to customer contracts and measured by work completed (for projects) or service del...
Power Mech Projects Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 60.62B | 52.34B | 42.07B | 36.01B | 27.10B |
| Gross Profit | 15.81B | 13.54B | 12.02B | 9.89B | 7.43B |
| EBITDA | 7.48B | 6.04B | 4.98B | 4.20B | 3.03B |
| Net Income | 3.64B | 3.26B | 2.48B | 2.09B | 1.39B |
Balance Sheet | |||||
| Total Assets | 55.89B | 46.15B | 35.68B | 30.54B | 25.97B |
| Cash, Cash Equivalents and Short-Term Investments | 4.93B | 5.93B | 524.00M | 448.60M | 759.40M |
| Total Debt | 6.64B | 7.35B | 3.96B | 4.77B | 5.31B |
| Total Liabilities | 30.00B | 24.32B | 17.28B | 17.78B | 15.51B |
| Stockholders Equity | 25.18B | 21.60B | 18.38B | 12.75B | 10.43B |
Cash Flow | |||||
| Free Cash Flow | 943.40M | -1.62B | 1.12B | 1.29B | 1.31B |
| Operating Cash Flow | 4.30B | 2.70M | 2.05B | 1.82B | 1.75B |
| Investing Cash Flow | -2.27B | -1.93B | -3.73B | -909.89M | -517.60M |
| Financing Cash Flow | -1.89B | 2.32B | 1.76B | -1.20B | -631.50M |
Power Mech Projects Ltd. Technical Analysis
Neutral
2326.90
Price Trends
2599.91
Positive
2348.98
Positive
2390.15
Positive
Market Momentum
7.45
Positive
45.58
Neutral
13.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POWERMECH, the sentiment is Neutral. The current price of 2326.9 is below the 20-day moving average (MA) of 2741.82, below the 50-day MA of 2599.91, and below the 200-day MA of 2390.15, indicating a neutral trend. The MACD of 7.45 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:POWERMECH.
Power Mech Projects Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹57.11B | 15.61 | ― | ― | 3.14% | ― | |
70 Neutral | ₹81.06B | 22.62 | ― | 0.05% | 15.81% | 11.50% | |
64 Neutral | ₹227.62B | 22.17 | ― | 0.77% | 21.63% | 72.43% | |
64 Neutral | ₹121.50B | 25.66 | ― | 0.80% | 43.33% | 9.64% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ₹129.71B | 21.77 | ― | 0.74% | 7.59% | 4.98% | |
47 Neutral | ₹21.29B | -1.61 | ― | ― | -33.77% | -32.47% |
* General Sector Average
IN:POWERMECH
Power Mech Projects Ltd.
2,605.05
-703.71
-21.27%
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860.45
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159.45%
IN:KEC
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495.45
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-42.32%
IN:KPIL
Kalpataru Projects International Limited
1,350.20
168.93
14.30%
IN:TECHNOE
Techno Electric & Engineering Company Limited
1,047.10
-539.23
-33.99%
Power Mech Projects Ltd. Corporate Events
Power Mech Releases Q4 FY26 Earnings Investor Presentation
May 22, 2026
Power Mech Projects Ltd. has released an investor presentation detailing its audited financial results for the quarter and full year ended March 31, 2026. The materials, made available on the company’s website, form part of the Q4 FY 2026 ea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.