The electrical industry has been an attraction for investors in search of multi-bagger profits. The Electrical sector has grown significantly in recent years as the world’s need for power has increased. Companies in the industry include those involved in the generation, transmission, and distribution of energy, as well as those producing electrical equipment and machinery. Electrical companies have earned exceptional profits over the years. While the industry is undergoing a transition towards electrification in industries, tremendous demand from customers, and innovation in electrical equipment, many expect growth to be driven by this. Investors are looking for potential multi-bagger stocks.
Listed below are 3 Electrical sector stocks which have given multibagger returns
And gained an all-time high share price.
Polycab India Ltd
Shares of Polycab India Ltd were trading at ₹ 3,370 levels on Monday’s intraday trade after they hit a fresh 52-week high and an all-time high of ₹3,422 apiece on the National Stock Exchange (NSE) on Monday.
In the past five years, the company’s share price rose from ₹ 643.55 to the current level, giving multibagger returns of 423.66 %. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹5.23 lakhs today!
Zee business research has recommended a target price of ₹ 4000 or 18.69 percent upward on Polycab Ltd.
The stock has experienced positive movement over the 6 months period with a return of 28.64 percent, over the last 3 years it has given a 388.75 percent return.
Polycab is India’s leading manufacturer of cables and wires and allied products such as uPVC conduits and lugs and glands. More recently Polycab has also launched a wide range of consumer electrical products like Fans, Switches, Switchgear, LED lights and Luminaries, Solar Inverters, and Pumps.
As per Consolidated financials, the revenues significantly increased from ₹ 12,203 crores during FY 21-22 to ₹ 14,107 crores in FY 22-23. Similarly, the net profit slightly increased from ₹ 847 crores to ₹ 1,291 crores for the same timeframe.
The basic profitability ratios exhibiting operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE) showed an upward trend in the past couple of financial years. ROE moved from 16.39 percent during FY 21-22 to 19.15 percent in FY 22-23 and ROCE, keeping the time frame the same, took a shift from 20.34 percent to 26.12 percent and The company has a market capitalization of ₹ 50,635 Cr and debt-to-equity ratio stood at 0.02 for FY23.
Apar Industries Ltd
Shares of Apar Industries Ltd were trading at ₹ 2,758 levels on Monday’s intraday trade after they hit a fresh 52-week high and an all-time high of ₹3,296 apiece on the National Stock Exchange (NSE) on 8th May.
In the past five years, the company’s share price rose from ₹750.95 to the current level, giving multibagger returns of 267.27 %. Therefore, if an investor would have invested ₹1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹3.67 lakhs today!
Prabhudas Lilladher brokerage recommended a target price of ₹ 3,832 or 38.9 percent upward on Apar Industries.
The stock has experienced positive movement over the last year with a return of 358.86 percent, over the last 3 years it has given an 833.96 percent return.
Apar Industries is a market leader in India with a global presence. Contributing to India’s process of electrification it started from manufacturing power transmission cables to having three broad business segments, which are Conductors, Transformer and specialty oils (TSO), and Power/telecom Cables.
As per Consolidated financials, the revenues significantly increased from ₹ 9,319 crores during FY 21-22 to ₹ 14,352 crores in FY 22-23. Similarly, the net profit slightly increased from ₹ 256 crores to ₹ 637 crores for the same timeframe.
The basic profitability ratios exhibit operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE). ROE has increased from 14.96 percent during FY 21-22 to 28.51 percent in FY 22-23 and ROCE, keeping the time frame the same, took a shift from 23.65 percent to 46.58 percent and The company has a market capitalization of ₹ 10,513 Cr and debt-to-equity ratio stood at 0.14 for FY23.
Siemens Ltd
Shares of Siemens were trading at ₹ 3,854 levels on Monday’s intraday trade after they hit a fresh 52-week high and an all-time high of ₹3,940 apiece on the National Stock Exchange (NSE) on Friday.
In the past five years, the company’s share price rose from ₹ 1036.70 to the current level, giving multibagger returns of 271.76%. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 3.71 lakhs today!
UBS Brokerage recommended a target price of ₹ 4500 or 16.76 percent upward on Siemens Ltd.
The stock has experienced positive movement over the 1-month with a return of 15.42 percent, over the last 3 years it has given a 255.69 percent return.
Siemens Ltd deals in the areas of power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalization in the process and manufacturing industries. It is also a leading supplier of smart mobility solutions for rail and road transport and infrastructure solutions for Smart Cities.
As per Consolidated financials, the revenues significantly increased from ₹ 13,639.2 crores during FY 20-21 to ₹ 16,137.8 crores in FY 21-22. Similarly, the net profit significantly increased from ₹ 1,261 crores during FY 20-21 to ₹ 1,543 crores in FY 21-22. (Consider September as the End of the Fiscal year)
The basic profitability ratios exhibiting operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE) showed an upward trend in the past couple of financial years. ROE moved from 10.53 percent during FY 20-21 to 13.28 percent in FY 21-22 and ROCE, keeping the time frame the same, took a shift from 12.92 percent to 14.42 percent and The company has a market capitalization of ₹ 1,37,042 Cr having ‘nil’ debt-to-equity ratio.
Written by Omkar C
