The shares of one of India’s prominent manufacturers of Power and distribution transformers rose 10 percent to Rs 3,189 apiece in early trade on Monday following the announcement of the record date for the bonus issuance.
At 1:45 p.m., On the National Stock Exchange, Shilchar Technologies Ltd shares were trading at Rs 3,087.90 a share, up Rs 182.55 or 6.28 percent, with a market value of Rs 1,177 crores.
According to the exchange filing, The Company board announced September 6, 2023, as the Record Date for determining shareholder eligibility for the issuance of bonus shares in the ratio of 1:1, i.e. the company will issue one bonus share for every share owned by existing shareholders.
Furthermore, the company is in the stages of expanding its production facilities from 4000 MVA to 5000 MVA for the manufacture of Distribution and Power Transformers. In addition to this, electronic and telecommunication transformer manufacturing facilities will be transferred from the present Bil facility to the Gavasad plant, which cost a total of Rs.10 crores in capital expenditure.
The company’s revenue climbed by 17 percent year on year, rising from Rs 57 crore in Q1FY23 to Rs 67 crore in Q1FY24. Net profit climbed by 220 percent within the same period, from Rs 5 crore to Rs 16 crore.
The company’s stock has delivered multibagger returns of 140 percent in six months and 431 percent over a year. A shareholder’s investment of Rs. 1 lakh in the business would be worth Rs. 5.31 lakhs after a year and Rs. 2.40 lakhs after a half-year.
As per the latest shareholding pattern, The company’s promoters hold 65.85 percent of the company, and retail investors hold 33.05 percent.
Shilchar Technologies manufactures electronic and telecom transformers, as well as power and distribution transformers. And recently the company has started manufacturing Ferrite transformers.
Written by Omkar Chitnis
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