The shares of the transformer manufacturer surged 5 percent to a 52-week high of Rs 40.86 per share on Thursday after the company released strong June quarter financial results,
Alfa Transformers Ltd shares reached the upper circuit on the Bombay Stock Exchange on Thursday, with a market capitalisation of Rs 37 crore.
According to the company’s exchange filing, Alfa Transformers reported a 256 percent growth in sales to Rs 12.38 crore in Q1FY24,as compared to Rs 3.47 crore in the corresponding quarter of the previous year(Q1FY23).Furthermore, its net profit climbed to Rs 1.23 crore in Q1FY24 from net loss of Rs 0.34 crore in Q1FY23.
In comparison to the previous quarter (Q4 FY 22-23), operational revenue grew by 67 percent to Rs 12.52 crore from Rs 7.48 crore in Q1FY23, while net profit improved by 510 percent to Rs 1.22 crore from Rs 0.20 crore.
Alfa Transformers Limited is engaged in the production of Electrical Distribution Transformers.The company is a major supplier to multinationals and domestic clients.
The company’s profitability ratios have improved, with operating margin increasing from -34.69 percent to 6.62 percent and net profit margin increasing from -40.98 percent to 3.49 percent.
According to the current shareholding pattern, the promoters control 47.6 percent of the corporation, while individual investors own 52.39 percent.
In light of the illiquidity of penny stocks, merely a small number of orders may create a circuit limit. Individual investors should conduct comprehensive research on high-return penny stocks before buying since they lack consistency in performance and hence carry a high risk to retail investors.
Written by Omkar Chitnis
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