Power Mech Projects Ltd. (POWERMECH) AI Stock Analysis

• Market Cap: ₹99.23B
• Dividend Yield: 0.03%
• Average Volume (3M): 5.57K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 1.82
• Revenue Growth: 26.93%
• EPS Growth: 21.97%
• Country: IN
• Employees: 10,946
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 25.00
• Shares Outstanding: 31,616,293
• 10 Day Avg. Volume: 5,215
• 30 Day Avg. Volume: 5,573
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹3,374.00
• Price Target Upside: 7.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹3,374.00 ▲(7.85% Upside)

Power Mech Projects Ltd. has a strong financial foundation with robust revenue growth and profitability, but faces challenges in cash flow management. Technical indicators suggest potential short-term weakness, and the stock appears overvalued based on its P/E ratio. The lack of earnings call data and corporate events limits additional insights.

Power Mech Projects Ltd. Business Overview & Revenue Model

Company Description

Power Mech Projects Ltd. (POWERMECH) is an Indian engineering and construction company primarily engaged in providing services to the power and infrastructure sectors. The company specializes in the erection, testing, and commissioning of boilers, turbines, and generators (BTG) and balance of plant (BOP) works across various power plants. It also offers operations and maintenance services, civil and structural works, and the development of railway infrastructure projects.

How the Company Makes Money

Power Mech Projects Ltd. generates revenue primarily through its engineering and construction services. The company's main revenue streams include contracts for the erection, testing, and commissioning of BTG and BOP works in power plants, which often involve large-scale, long-duration projects. Additionally, Power Mech earns income from providing operations and maintenance services for existing power plants, ensuring their efficient and continued operation. The company also diversifies its revenue by engaging in civil and structural works and railway infrastructure projects, expanding its presence in the infrastructure sector. Significant partnerships with power plant operators and infrastructure developers, along with government contracts, play a crucial role in contributing to its earnings.

Power Mech Projects Ltd. Financial Statement Overview

Summary

Power Mech Projects Ltd. shows strong financial performance with significant revenue growth and improved profitability margins. The balance sheet is stable, with strong equity and manageable leverage. However, cash flow management poses a challenge, as negative free cash flow needs attention to ensure liquidity and support growth.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	52.34B	36.01B	42.07B	27.10B	18.84B
Gross Profit	13.54B	9.89B	12.02B	7.43B	3.90B
EBITDA	6.04B	4.20B	4.98B	3.03B	572.70M
Net Income	3.26B	2.09B	2.48B	1.39B	-456.30M
Balance Sheet
Total Assets	46.15B	30.54B	35.68B	25.97B	22.61B
Cash, Cash Equivalents and Short-Term Investments	5.93B	8.50B	524.00M	759.40M	161.10M
Total Debt	7.35B	4.77B	3.96B	5.31B	5.15B
Total Liabilities	24.32B	17.78B	17.28B	15.51B	13.52B
Stockholders Equity	21.60B	12.75B	18.38B	10.43B	9.05B
Cash Flow
Free Cash Flow	-1.62B	1.29B	1.12B	1.31B	953.10M
Operating Cash Flow	2.70M	1.82B	2.05B	1.75B	1.22B
Investing Cash Flow	-1.93B	-909.89M	-3.73B	-517.60M	-468.00M
Financing Cash Flow	2.32B	-1.20B	1.76B	-631.50M	-913.10M

Power Mech Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3128.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 3128.35 is below the 20-day moving average (MA) of 3142.93, below the 50-day MA of 3157.37, and above the 200-day MA of 2687.87, indicating a neutral trend. The MACD of -16.85 indicates Positive momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
WABAG	67 Neutral	₹95.35B	31.14		0.26%	16.09%	22.20%
HGINFRA	66 Neutral	₹64.48B	12.76		0.20%	-5.99%	-6.15%
KNRCON	66 Neutral	₹56.80B	5.96		0.12%	-1.26%	17.20%
POWERMECH	65 Neutral	₹99.23B	31.12		0.03%	26.93%	21.97%
DBL	58 Neutral	₹69.85B	8.38		0.21%	-11.92%	176.97%
Sector *	58 Neutral	HK$13.61B	5.49	-2.78%	5.73%	2.29%	-57.50%
HCC	41 Neutral	₹46.54B	27.67		―	-29.25%	-66.38%