Power Mech Projects IPO review by Ajcon Global

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

Power Mech, incorporated in 1999, founded by Mr Kishore Babu, (a first generation entrepreneur) is one of the leading integrated power infrastructure services companies in India providing comprehensive erection, testing and commissioning of boilers, turbines and generators ("ETC-BTG") and balance of plant ("BOP") works, civil works and operation and maintenance (O&M) services. Power Mech’s operations include three principal business lines: (i) Erection Works; (ii) Operation & Maintenance (O&M) Services; and (iii) Civil Works.

Outlook, Valuation and Recommendation -
"At the upper band of the issue price, PML is valued at 11x at FY15 Pre Issue EPS of Rs. 57.5 and 13x at post issue FY15EPS of 48.5. With due consideration to factors like a) integrated power infrastructure services provider, b) established track record with strong execution capabilities, c) diversified and marquee client base, d) strong past financial performance with strong return ratios and historical trend of positive cashflow, e) favorable capital structure, we believe the Company’s valuation is fairly priced as compared to its peer BGR Energy Systems (PML has a better return profile compared to BGR with FY15 ROE of 20.13% (vs 2.29%). we recommend “SUBSCRIBE” to the issue", says Ajcon Global research report.