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Last Updated : Sep 01, 2017 06:23 PM IST | Source:

Hold Power Mech Projects; target of Rs 578: Reliance Securities

Reliance Securities is bullish on Power Mech Projects has recommended Hold rating on the stock with a target price of Rs 578 in its research report dated August 24, 2017

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Reliance Securities' research report on Power Mech Projects

Power Mech Projects (PMPL) has delivered a healthy performance in 1QFY18 with its consolidated revenue growing by 10.0% YoY to Rs3.58bn owing to continued strong growth in Civil & Other Works segment. However, revenues from Erection Testing & Commissioning (ETC) segment declined by 17.97% YoY to Rs1.44bn due to slowdown in domestic thermal power capacity addition. We believe that dominant position in power EPC business, impressive order book and superior execution capability will drive PMPL’s profitability, going forward.


Hence, we change our recommendation to HOLD with an upwardly revised Target Price of Rs 578 (from Rs 565 earlier) based on multiple of 9x P/E of FY19E.


For all recommendations report, click here

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First Published on Sep 1, 2017 06:23 pm
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