1:1 Bonus Shares, Tuesday, October 8 Record Date: Take A Fresh Entry To Get Free Shares?

One of the top infrastructure-construction companies in the world, Power Mech Projects Limited is headquartered in Hyderabad, India, and is well known for offering a wide range of services in the infrastructure and power sectors. It can operate up to 55 locations sequentially and handle and execute over 4,00,000 MT yearly. Over the course of its two decades in business, the company has worked on projects of every kind both domestically and internationally. These projects consist of hydroelectric projects, gas turbine generators, heat recovery and recovery steam generators, waste heat recovery steam generators, circulating fluidised bed combustion steam generators, ultra mega power projects, super critical thermal power projects, subcritical power projects, operation and maintenance of operating plants.

Power Mech Projects Bonus Shares

"We wish to inform you that the Company has revised the Record Date to Tuesday, October 8, 2024. This date has been fixed for determining the Members entitled to the allotment of bonus equity shares in the ratio of 1:1. Accordingly, 1 (One) new fully paid-up equity share of Rs. 10/- each will be issued for every 1 (One) fully paid-up equity share of Rs. 10/- each held by the Members. Further, the Board of Directors has fixed the Book Closure period from September 21, 2024, to September 27, 2024 (both days inclusive), in connection with the ensuing Annual General Meeting, and Final Dividend," said Power Mech Projects in a stock exchange filing.

A total of 1,58,08,146 equity shares having a face value of Rs. 10/- each is the total number of securities proposed to be issued as bonus shares. The bonus equity shares will be issued out of the securities premium account available as of 31st March 2024. A securities premium of Rs. 1,58,08,146 would be capitalized for implementing the bonus issue, according to Power Mech Projects. The balance in free reserves and securities premium account as of 31st March 2024 was Rs. 1791.27 Crores.

The estimated date by which such bonus shares would be credited/dispatched is on or before 21st October 2024.

Power Mech Projects Financials

In the June 2024 quarter, the firm recorded revenue from operations of Rs. 1,007.39 crore, a 16.44% growth over the June 2023 quarter's Rs. 865.13 crore. Its net profit climbed 17.93% from Rs. 50.99 crore in Q1FY24 to Rs. 60.13 crore in Q1FY25. EBITDA increased 17.3% from Rs. 104.78 crore in the June 2023 quarter to Rs. 122.91 crore in the June 2024 quarter.

Power Mech Projects Share Price Target

"Infrastructure construction company Power Mech Projects Limited is currently in the news after the company announced its ex-dividend, scheduled to be on September 20, 2024. Notably, the company's PE stands at 40.77, which is higher than the sector PE of 23.62, suggesting overvaluation. Similarly, its ROE of 16.46% suggests profitability. Despite a modest dividend yield of 0.03%, the company has demonstrated 16.44% year-over-year growth in sales. However, its recent stock performance shows a 52-week low of Rs. 3,364 and a high of Rs. 7,450, suggesting volatility. This is further evident from its RSI readings of 58 on the daily, 65 on the weekly, and 74 on the monthly charts. Based on these factors, I believe there's room for correction in this stock. So, those interested in this stock's potential may consider Rs. 5,600-6,350 as the entry point for a target price of Rs. 7,000 to Rs. 10,000. However, I advise them to set their stop loss at Rs. 5,300 to limit losses," recommended V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

On the other hand, A R Ramachandran, Independent Research Analyst said, "Power Mech Projects stock price is sideways to bearish on the Daily charts with strong resistance at 7200. A Daily close below support of 6493 could lead to a target of 5786 in the near term."

Disclaimer

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