Power Mech Projects Limited

Industrials — Engineering & Construction · NSE

₹2,386.00−₹36.30 (−1.50%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Power Mech Projects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Power Mech Projects Limited, together with its subsidiaries, provides services in power and infrastructure sectors in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees9,964

Annual revenue₹6,050 Cr

How does it make money?

Turns over ₹6,050 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 9,964 employees supports ₹60.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹60.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.5% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.1%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 21.6% and earnings to grow about 27.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.6%

Est. earnings growth+27.7%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +68% while net margin moved +4% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+68%

Margin effect+4%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 20.3% is above 20% — the business earns a high return on the capital it employs
✗ ROCE has fallen by 3.3 points — returns are eroding
✗ EBITDA margin of 11.9% is thin — little cushion if costs rise
✗ Net margin of 6.1% is slim
• Revenue has compounded at 18.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.0x

3Y Median

29.7x

40 monthly readings · mean 29.7x · range 16.8x–43.9x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 36% below its 3y median of 29.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 37% below the peer median of 30.1x.

vs. its own history

Cheap

29.7x median over 40 months · -36%

vs. sector peers

Cheap

30.1x median of 3 peers · -37%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.2x

PEG

0.94

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 20.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 23.6% to 20.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 37% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹52 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.9% CAGR
Latest reported year was 25.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹52 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹7,544 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.00x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹125.58

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

20.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

25.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

51.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.06%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹52 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

13.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.9%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2427.2 / 2442.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,600 Cr	₹4,206 Cr	₹5,220 Cr	₹6,050 Cr	+18.9%
EBITDA	₹396 Cr	₹500 Cr	₹627 Cr	₹718 Cr	+22.0%
EBITDA Margin	11.0%	11.9%	12.0%	11.9%	—
PAT (Net Profit)	₹209 Cr	₹248 Cr	₹326 Cr	₹364 Cr	+20.3%
EPS	₹70.63	₹81.07	₹103.26	₹115.12	+17.7%
ROE	16.4%	13.5%	15.1%	14.5%	—
ROCE	23.6%	21.1%	22.2%	20.3%	—
Total Debt	₹473 Cr	₹396 Cr	₹715 Cr	₹634 Cr	+10.3%
Free Cash Flow	₹129 Cr	₹112 Cr	-₹162 Cr	₹52 Cr	-26.1%

🟢 Revenue has grown at 18.9% a year over 3 years.

🟢 EBITDA has grown at 22.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.9% over 3 years.

🟢 PAT (Net Profit) has grown at 20.3% a year over 3 years.

🟢 EPS has grown at 17.7% a year over 3 years.

🔴 ROE has fallen from 16.4% to 14.5% over 3 years (-1.9 pts).

🔴 ROCE has fallen from 23.6% to 20.3% over 3 years (-3.3 pts).

🔴 Total Debt has grown at 10.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 26.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,589 Cr

Total Liabilities

₹3,000 Cr

Cash & Equivalents

₹107 Cr

Operating Cash Flow

₹387 Cr

Capex

-₹335 Cr

Shareholding (proxy)

Institutional Holding

25.1%

Insider Holding

58.4%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

10 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹3,237

+35.7% vs CMP

Target Range

₹2,811 – ₹3,950

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

3 positive3 general

Power Mech Projects Share Price - Live NSE: POWERMECH Stock Price & Chart

Upstox, 16 Oct

Is Power Mech Projects the Best Stock in Its Sector? A Look at the Numbers

Univest, 15 Oct

Does Power Mech Projects (NSE:POWERMECH) Deserve A Spot On Your Watchlist?

Simply Wall Street, 26 May

Power Mech Projects consolidated net profit rises 51.90% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Power Mech Projects shares jump nearly 5% on ₹1,009-crore order win from JSW Thermal Energy

Moneycontrol.com, 22 JunOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Power Mech Projects Share Price Jump 4.55% After ₹1,005 Crore Order Win From Adani Power Subsidiaries

HDFC Sky, 18 FebOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation · Risk

MiddlingBusiness Quality · Profitability

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑