Received order worth 499cr from Bangalore Metro Rail Corporation Limited (BMRCL) in a joint venture with RITES Company share 49% in JV {Rev increase due to order : 243cr} {compare to FY22rev: 2710cr}
Project mix is well diversified now. A good mix of material handling, mine development, road, water, irrigation, and other contracts. This reduces the concentration on the power sector. Plus some of the new contracts (mining and water) have long term visibility (10 years plus) as on these contracts there is an follow-up operations and maintenance contract that can be bid for (not included in the order book yet).
There should be a steady flow of news about wins in the coming months given number of contracts they are L1 bidders for.
Posted some technical analysis of powermech on appropriate thread. Since these are cyclical stocks and tops and bottoms form much before business bottoms and tops so technical analysis can help a lot.
A stock taking long time to go up and comes down in 1-2 days tells that sellers are dominating and it lacks momentum. It might go up a little bit but won’t cross the right shoulder top IMO. Also the volume profile matches a head and shoulder top. Volume is decreasing from left to right. Also the hns top formed near a long term resistance that can be seen in monthly charts.
Update: Further downmove support at 1550. I bought the stock at 1350… saw it to go 2000 and it came back to 1700 then went to 2400 and came back to 1900. I saw my profits evaporating 2 times so I wouldn’t let my profits turned into dust again and sold at 2150. This is how the psychology works for someone who is sitting on huge gain. I wouldn’t have sold if my first buying was at 1800. Because the gains would be very low. But the stock doesn’t know at what price I bought it or I should say the ppl who bought at low doesn’t know my buying price. So when a stock gives topping signal after a very quick run up, like formation of head and shoulder or lower highs it’s time to be cautious. I’m quite sure the stock will come up again because the fundamentals are good and earning up cycle will continue.
This is just for knowledge sharing purpose. No buy or sell recommendation. People can see the stage analysis thread of which link is given if this post is deleted.
If I am not wrong, a large part of the order book comes from the Adani group (they had got a very large FGD order from Adani Power) here and that’s the reason for the fall.
the FGD order of 6000 cr out of 25000 cr orderbook comes from Adani. But markets are not rational they will sell a stock for 30% even if there is just 10% logical downfall and in the uomove they will put a stock up 30% logically even if it should go up by 30%. But one needs to be careful while exiting a stock because after the stock falls the reason comes out. I’m quite sure there will not be much impact of adani on powermech but the price has suffered already and it was showing signs of topping for last few months once it touched 2000 for first time so I don’t know if the downfall is due to adani solely.
Agree! Company replied in concall… FGD Business from Adani does not require working capital except for 35 cr in machinery which they have already procured. and as of now they have excess cash to execute the order…
When promoters, FII and DII are raising their stake…business prospects are expected to be good…
technically also, no major bearish divergence seen on any timeframe…
Discl: holding after partial profit booking at higher levels
We wish to inform you that Power Mech Projects Limited (PMPL) bagged a Mine
Development and Operation Project (MOO) for an estimated value of Rs.30,438
Crores from Steel Authority of India Limited (SAIL).
Yes - but since they got the big SAIL order, there has been continous selling by someone big. Even after declaring decent numbers today, the stock fell ~6% (it was up 2% prior to result declaration and then closed at ~4% down). Hope the downfall stops soon
Stocks up ~4x in the last 1 year. A fall/consolidation for next couple of quarters will be healthy. Good results/ Earnings catching up will help cool valuations as well.
In continuation to our previous intimation dated 09.08.2023 wherein we have intimated to
the exchange(s) in the outcome of board meeting regarding the formation of a Special
Purpose Vehicle (SPV)for execution of the Tasra MDO Project, we wish to inform that the said
SPV has been incorporated with the name KALYANESWARI TASRA MINING PRIVATE
LIMITED, the intimation of which was received by the Company via email on 28.08.2023 at
22.13 Hours.
