Waya initiates coverage on Power Mech Projects Ltd. with a BUY recommendation. Waya expects an upside of 46% in 1 year and sets a target price of ₹3,330.

Power Mech Projects is one of India’s leading power and infrastructure engineering companies, known for building and maintaining large thermal power plants. Over the years, the company has expanded beyond power into mining, railways, civil infrastructure and long-term operation & maintenance (O&M) services.

Power Mech has strong financials with revenue growing to ₹5,234 crore in FY25 and profits rising steadily. The company has a massive order book of over ₹56,000 crore, providing clear revenue visibility for the next several years. A growing share of high-margin mining (MDO) and O&M contracts is also improving profitability and cash flow quality.

Waya believes Power Mech is well-placed for long-term growth, driven by India’s renewed focus on thermal power capacity, rising infrastructure spending and annuity-like income from long-term mining and O&M projects.