Listed below is one of the multi-bagger stocks that is in the business of manufacturing Electronics, Telecom, and Power & Distribution of transformers; it has also recently ventured into the manufacturing of Ferrite transformers. The stock has delivered multi-bagger returns of 16,880 percent to its shareholders in just 5 years.
On April 29th, 2020, the shares of Shilchar Technologies Ltd were trading at Rs.38.48, from which the share price of the company has exponentially risen by 16,880 percent, and currently, as of May 2nd, the shares of the company are trading at Rs.6,567.80. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to approximately 1.7 crores.
Shilchar Technologies Ltd. is one of India’s prominent manufacturers of Electronics & Telecom and Power & Distribution transformers. The company manufactures superior quality transformers for a wide range of industries across the world, including the utility sector to renewable energy; all of them are satisfied with our powerful product range.
Shilchar is an internationally sought-after company generating more than 50 percent of its revenue from exports since 2011. Currently, the company manufactures transformers up to 50 MVA, 132 KV Class, and is rapidly expanding its global footprint.
Orderbook and expansion outlook
As of Q4 FY25, Shilchar Technologies Ltd has reported a pending order book of approximately Rs.400 crores. This reflects a strong demand across its business verticals, with new order inflows. The company has a Capacity Utilization of 100 percent in Q4FY25. Hence, the company is set to finish of all it orders and ensure timely delivery to their clients.
Recently, the company’s Capacity expanded from 4,000 MVA to 7,500 MVA in FY25, and the company also has 17 acres of land in reserves, out of which only 40 percent is utilized, therefore, the company has ample land for further expansion.
For the Future, Management is working on the 2nd phase of under which it is trying to consider moving into higher MVA/kV class transformers. Once the company gets approval from its management, this expansion will take 12-18 months to go live. The management is expecting the company to grow by 20-25 percent.
Business Segment Performance
Domestically, the company is focused on solar inverter duty transformers (IDTs), wind transformers, and some power transformers for stations, 60 percent of local sales of the company are from inverter duty transformers, and the company is expecting this growth to grow forward.
The Exports constitute around 44 percent of FY25 revenue. North America, primarily the US, is less than 20 percent of the total revenue; the rest of the business is from the Middle East and North Africa. The company’s Exports include a complete mix of IDTs for solar, distribution transformers, and others.
Financial performance
Its Revenue grew by 117.13 percent YoY from Rs. 108.9 Crores in Q4FY24 to Rs. 236.45 Crores in Q4FY25. Its Net Profit grew by 121.26 percent YoY from Rs. 25.02 Crores in Q4FY24 to Rs. 55.36 Crores in Q4FY25. EPS has also grown from Rs 32.8 in Q4FY24 to Rs 72.59 in Q4FY25.
With the market capitalization of Rs 5,038.07 crores, the current PE of the company stands at 34.31 as against the industry P/E of 79.33. The Return on capital employed of the company stands at 57.01 percent, the return on equity stands at 42.34 percent the company has a dividend yield of 0.19 percent.
Written By Likesh Babu S
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