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Power Mech Projects Ltd

NSE: POWERMECH BSE: 539302

2196.20

(5.14)%

Wed, 04 Feb 2026, 01:08 pm

Analysis

dividend

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Pros

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    Cons

    • Power Mech Projects is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
    • No need to calculate the sustainability of Power Mech Projects's dividends as it is not paying a notable one for India.
    • No need to calculate the sustainability of Power Mech Projects's dividends in 3 years as they are not expected to pay a notable one for India.
    • Power Mech Projects is not paying a notable dividend for India, therefore no need to check if the payments are stable.
    • Power Mech Projects's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
    • Power Mech Projects's dividend is below the markets top 25% of dividend payers in India (3.08%).

    future

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    Pros

    • Power Mech Projects is expected to become cash flow positive in 2 years.
    • Power Mech Projects's earnings are expected to grow significantly at over 20% yearly.
    • Power Mech Projects's earnings growth is expected to exceed the India market average.
    • Power Mech Projects's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Power Mech Projects's earnings are expected to exceed the low risk growth rate next year.
    • Power Mech Projects's net income is expected to increase by more than 50% in 2 years time.
    • Performance (ROE) is expected to be above the current IN Construction industry average.
    • An improvement in Power Mech Projects's performance (ROE) is expected over the next 3 years.
    • Power Mech Projects's revenue growth is expected to exceed the India market average.
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    Cons

    • Power Mech Projects is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Power Mech Projects's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Power Mech Projects's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Power Mech Projects is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Power Mech Projects is profitable, therefore cash runway is not a concern.
    • Power Mech Projects is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 3.9x debt.
    • Power Mech Projects's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (76.3% vs 46.1% today).
    • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
    • Low level of unsold assets.
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    Cons

    • Operating cash flow is negative therefore debt is not well covered.
    • Power Mech Projects's level of debt (46.1%) compared to net worth is high (greater than 40%).

    management

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    Pros

    • The tenure for the Power Mech Projects board of directors is about average.
    • More shares have been bought than sold by Power Mech Projects individual insiders in the past 3 months.
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    Cons

    • Sajja's remuneration is higher than average for companies of similar size in India.
    • Sajja's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

    misc

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    Pros

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      Cons

      • Power Mech Projects is covered by less than 3 analysts.
      • Power Mech Projects has significant price volatility in the past 3 months.

      past

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      Pros

      • Power Mech Projects's 1-year earnings growth exceeds its 5-year average (19.6% vs 17.5%)
      • Power Mech Projects's year on year earnings growth rate has been positive over the past 5 years.
      • Power Mech Projects used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
      • Power Mech Projects has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Power Mech Projects's earnings growth has exceeded the IN Construction industry average in the past year (19.6% vs 2.3%).
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      Cons

      • Power Mech Projects has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • Power Mech Projects's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Power Mech Projects's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Power Mech Projects is good value based on expected growth next year.
      • Power Mech Projects is good value based on earnings compared to the IN Construction industry average.
      • Power Mech Projects is good value based on earnings compared to the India market.
      • NSEI:POWERMECH is up 8.8% outperforming the Construction industry which returned 7.1% over the past month.
      • NSEI:POWERMECH is up 8.8% along with the India market (8%) over the past month.
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      Cons

      • Power Mech Projects is overvalued based on assets compared to the IN Construction industry average.
      • POWERMECH underperformed the Construction industry which returned -40% over the past year.
      • POWERMECH underperformed the Market in India which returned -14.5% over the past year.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800