The shares of the Micro-Cap stock specializing in the manufacturing and supply of power and distribution transformers hit a 2 percent upper circuit upon receiving multiple work orders worth Rs. 16.36 crores.
With a market capitalization of Rs. 485.70 crores on Tuesday, the shares of Supreme Power Equipment Limited hit a 2 percent upper circuit, making a high of Rs. 194.35 per share compared to its previous closing price of Rs. 190.55 per share. Supreme Power Equipment Limited, a leading manufacturer and supplier of power and distribution transformers, has recently secured two significant domestic orders.
The first order, valued at Rs. 8.80 crore, comes from an EPC company for KPTCL projects. It involves the supply of four 20 MVA, 66/11 kV power transformers, designed according to customer specifications, and this contract is scheduled to be executed within approximately five months.
The second order, worth Rs. 7.56 crore, has been awarded by a Renewable Power (Solar) Project Company. It requires the supply of 25 inverter duty transformers, ranging from 1250 KVA/33 kV to 6000 KVA/33 kV, also customized to client requirements, and the project is expected to be completed within about four months. These orders further strengthen Supreme Power Equipment Limited’s position in the power and renewable energy sectors.
Financials & Others
The company’s revenue rose by 52.5 percent from Rs. 59 crore to Rs. 90 crore in H2FY24-25. Meanwhile, the Net profit rose from Rs. 8 crore to Rs. 11 crore during the same period.
The company has a P/E ratio of 25.61, which is much lower than the industry average of 68.4, and maintains a low debt-to-equity ratio of 0.20, indicating financial stability. Its average Return on Equity (ROE) over the last three years is a strong 30.82%, with an average Return on Capital Employed (ROCE) of 28.30%.
Additionally, the company has achieved impressive growth, with an average 3-year revenue growth of 32% and an average 3-year net profit growth of 200.10%. This highlights the company’s strong profitability and consistent business expansion.
Supreme Power Equipment Limited, based in Tamil Nadu, has been a key player in the transformer industry for over three decades. Originally founded as a partnership firm in 1994 and incorporated as a private limited company in 2005, the company manufactures a wide range of power and distribution transformers, supplying over 17,000 units to various sectors and local utilities.
Known for its innovative designs, especially in the windmill segment, Supreme Power Equipment is recognized for producing reliable transformers that meet stringent technical requirements. It has a strong order book exceeding Rs.168 crore and a CRISIL BBB-/Stable long-term rating.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
