Power Mech Projects Ltd.
ISIN: INE211R01019 • Market Cap: ₹7,666 Cr
The 5-Pillar Quality Audit for Power Mech Projects Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (11.0%), Return on Capital Employed (23.4%), and equity compounding (15.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.33 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (21.1%) and 3Y PAT CAGR (26.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 19.59 vs PEG of 1.04 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 58.4%, backed by 27.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 23.4%)
Power Mech Projects Ltd. generates exceptional return on capital employed of 23.4%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 21.1%)
Revenue has expanded at 21.1% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 26.2%)
Net earnings have compounded at 26.2% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 19.59)
Trading at a P/E multiple of 19.59, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (27.1%)
Mutual funds, domestic DIIs, and foreign FIIs hold 27.1%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking POWERMECH against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 79/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Sector Peer Comparison
Compare POWERMECH directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Power Mech Projects Ltd. (POWERMECH)Current | 79/100 | ₹7,666 Cr | 19.59 | 23.4% | 0.33 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Power Mech Projects Ltd.
Q:What is the 5-Pillar Fundamental Score for Power Mech Projects Ltd. (POWERMECH)?
Power Mech Projects Ltd. has a RupeeTools Fundamental Score of 79/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (70/100), Financial Health (83/100), Growth (86/100), Valuation (82/100), and Ownership Quality (78/100).
Q:Is POWERMECH fundamentally strong for long-term investment?
Yes, POWERMECH exhibits solid fundamental strength with a 79/100 score, driven by a return on equity of 15.1% and a debt-to-equity ratio of 0.33.
Q:Does POWERMECH pass the Coffee Can Investing filter?
Yes! POWERMECH satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does POWERMECH compare against other Construction peers?
Within India's Construction sector, POWERMECH trades at a P/E of 19.59 and generates an ROCE of 23.4%. Compare its 5-Pillar score of 79/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.