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 two work orders from KPTCL and a solar project company, for 16.36 crores.
With a market capitalization of Rs. 525.31 crores on Monday, the shares of Supreme Power Equipment Limited hit a 2 percent upper circuit, making a high of Rs. 210.20 per share compared to its previous closing price of Rs. 206.15 per share.
Supreme Power Equipment Limited, engaged in the manufacturing and supply of power and distribution transformers, has received new domestic work orders from the Karnataka Power Transmission Corporation Limited Project and Renewable Power (Solar) Project.
The company has secured its first-ever order from Karnataka, valued at Rs. 8.80 crore and received. This order comes through an EPC company engaged with the Karnataka Power Transmission Corporation Limited (KPTCL), and involves the supply of four custom-built 20 MVA, 66/11 KV power transformers tailored to KPTCL’s specifications.
The project marks SPEL’s strategic entry into the Karnataka market and highlights its successful technical approvals in the state. The contract is expected to be completed within five months, further strengthening the company’s growing portfolio and regional presence.
The second order is a major order worth Rs. 7.56 crore from a Renewable Power (Solar) Project Company. This contract consists of supplying 25 inverter duty transformers with capacities ranging from 1250 KVA/33 KV to 6000 KVA/33 KV, and is scheduled for completion within four months.
The order solidifies SPEL’s position as a key provider in India’s renewable energy sector and expands its presence in the solar transformer segment, reinforcing its reputation as a reliable partner for sustainable power solutions.
Financials & Others
The company’s revenue rose by 49.1 percent from Rs. 61 crore to Rs. 91 crore in H2FY24-25. Meanwhile, the Net profit rose from Rs. 8 crore to Rs. 12 crore during the same period.
The company has a P/E ratio of 27.71, which is significantly lower than the industry average of 68.4, indicating strong valuation. It also maintains a low debt-to-equity ratio of 0.20, reflecting a healthy financial position.
Over the past three years, the company has demonstrated impressive performance, with an average ROE of 30.82 percent and an average ROCE of 28.30 percent. Additionally, it has achieved a good 32 percent average revenue growth and a substantial 200.10 percent increase in average net profit.
Supreme Power Equipment Limited (SPEL), established in 1994 and based in Chennai, India, is a leading manufacturer and supplier of a wide range of transformers, including power, distribution, windmill, solar, generator, isolation, energy-efficient, converter, and rectifier transformers.
SPEL has a strong presence in both traditional and renewable energy sectors, notably supplying over 17,000 units to windmill projects and power utilities across India and internationally, including collaborations with global companies like Vestas, Gamesa, and Suzlon, and has a current orderbook value of over Rs. 168 Crores.
Written by Sridhar J
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