Do you own this small-cap infra stock that made an all-time high today?

resr 5paisa Research Team

Last Updated: 24th April 2023 - 06:27 pm

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At the start of the week, Nifty closed around the day high while small-cap and mid-cap stocks witnessed a strong rally.

One small-cap stock from the construction and engineering sector grabbed investors' attention on D-Street by rallying more than 10%.

Order book

Recently, the company has received 4 orders totalling Rs 720 crore. In this, Building a government medical college and hospital for Uttarakhand Pey Jal Nigam Limited in Uttarakhand is Order No. 1. It is worth Rs 362 crore.

Distribution works under ROSS for MPPKWCL, Khargone Circle, Indore, Madhya Pradesh, and railway electrification of 25 KV OHE Works, Mysuru Division, Karnataka are included in Order No. 2's scope. It is worth Rs 162 crore.

Balance Erection Works & Refurbishment of 2x525 MW Monnet Ispat, JSPL, Angul, Odisha is Order No. 3. It is worth Rs 106 crore.

Operation and upkeep of the entire seawater intake system at GSPC Pipavav Power Company Limited, Pipavav, Gujarat, is the subject of Order No. 4. The order has a value of Rs 90 crore.

Technical analysis

Technically stock made a new time high and closed at Rs 2727 by rallying 10.6% with volumes above the average of the last 30 days. Today’s price action formed a strong bullish bar on daily charts with closing around the day's high which registered a continuation pattern breakout. Today’s day low of Rs 2445 is the nearest technical support for now. All short-term and long-term moving averages placed in the bullish zone indicate strong momentum.

Over the last 5 years, the company has seen compounded sales growth of around 15%, compounded profit growth of around 17%, and a stock price CAGR of around 21%.

Company profile 

The stock is Power Mech Projects Limited, incorporated in 1999, is an engineering and construction company providing integrated service in the erection, testing and commissioning (ETC) of boilers, turbines and generators and balance of plant (BOP), civil works and operation and maintenance (O&M). The company undertakes ultra mega power projects, super critical thermal power projects and sub-critical power projects.  

Considering all these factors, add this stock to the watchlist for the short term and medium term.

 

 

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