Power Mech Q1 Results Review- Mine Development, Operation To Drive Growth, Margins In Medium Term: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Power Mech Projects Ltd.'s revenue and Ebitda margin were below our estimates by 12% and 86 basis points, respectively.Order inflow from Power: Non-power sectors stood at 54%:46% of the total order inflow in 132 days of FY25. Domestic: International revenue mix stood at 94%:6%. Power Mech secured orders worth Rs 17.5 billion in Q1 FY25, with the total order backlog standing at Rs 57.8 billion as on August 12th 2024.Power Mech has received forest land clearance from the Jharkhand Government for the Kotre Basantpur mine and the over-burden activity is expected to start by early Q3 FY25 – a delay of about two months vs earlier expectation.Post elections, Government of India infrastructure spending is expected to boost project opportunities in sectors such as Power, Railways and Urban Infra.We believe that the outlook over the medium term remains robust on the back of healthy order booking and the scale-up in the MDO segment. Power Mech’s margin profile is expected to improve gradually as the share of MDO revenue increases (margin accretive business). We maintain Accumulate on Power Mech with a target price of Rs 6,100, valuing it at 16 times June’26E earnings. We continue to remain structurally positive on the business model over the medium to long term..Click on the attachment to read the full report:.Garden Reach Shipbuilders Expects Margins To Improve With Rising Exports, Better Efficiency.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Power Mech Q1 Results Review- Mine Development, Operation To Drive Growth, Margins In Medium Term: Nirmal Bang

The brokerage maintains Accumulate rating on the company with a target price of Rs 6,100, valuing it at 16 times June’26E earnings.

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Power Mech Q1 Results Review- Mine Development, Operation To Drive Growth, Margins In Medium Term: Nirmal Bang

The brokerage maintains Accumulate rating on the company with a target price of Rs 6,100, valuing it at 16 times June’26E earnings.

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