The shares of this power products manufacturer and distributor have delivered an astonishing 7000 percent return over the past year.
Price Movement
Diamond Power Infrastructure Limited, a midcap company in the cable industry, has seen its share price skyrocket to a 52-week high of Rs.1,645 per share, a remarkable 70-fold increase from just Rs.23.30 a year ago. The share price is currently trading at Rs.1,560.6 per share.
If an investor had invested Rs.1 lakh into the company a year ago, that investment would now be worth Rs.71 lakh. This remarkable 7,000 percent return is attributed to several key factors.
What Led to the Rise
Diamond Power Infrastructure’s remarkable stock surge over the past year highlights its operational excellence and strong market confidence in its growth potential—impressive financial results, new contracts, and expanded production capacity fuel this rise.
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For Q1 FY25, the company reported consolidated revenue of Rs.224 crore, a notable 202.7 percent increase from Rs.74 crore in the same quarter last year and a 67.2 percent rise from Rs.134 crore in Q4 FY24.
In terms of net profit, Diamond Power Infrastructure earned Rs.17 crore in Q1 FY25, reflecting a 183.3 percent increase from Rs.6 crore in Q1 FY24 and a 21.4 percent rise from Rs.14 crore in Q4 FY24.
In July 2024, Diamond Power Infrastructure secured two major orders from Adani Group companies, totaling over Rs.1,300 crore. These include a Rs.900 crore contract with Adani Energy Solutions for AL-59 aluminum alloy conductors, set for delivery by April 2025, and a Rs.409 crore order with Adani Green Energy for various LV/MV cables, scheduled for completion by December 2024.
These significant contracts have notably bolstered the company’s order book, which reached Rs.1,505 crore as of July 2024.
Moreover, in June 2024, Diamond Power Infrastructure established a wholly-owned subsidiary, DICABS Nextgen Special Alloys Private Limited, to focus on manufacturing wire rods, cables, conductors, and related machinery.
Product Mix
The company specializes in manufacturing transmission and distribution power products, including conductors up to 765 kV, cables up to 550 kV, transformers up to 220 kV, and transmission towers. The company also provides EPC services, with nearly all revenue coming from these power products and services.
Shareholding Pattern
The promoters of Diamond Power Infrastructure hold the majority 90 percent stake in the company, while FII (Foreign Institutional Investors) and Retail investors own 0.08 percent and 9.92 percent shares respectively.
Company Profile
Diamond Power Infrastructure Limited operates in the Transmission and Distribution (T&D) sector, designing and manufacturing power transmission equipment, including conductors, power cables (HV, LV, and UHV), and transmission towers.
Written by – Siddesh S Raskar
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