Shares of microcap company clocked 2 percent upper circuit in Tuesday’s trading session after receiving an order worth Rs. 48.73 lakhs. The shares have delivered a multibagger return of 182 percent return to its investors in one year.
With a market capitalisation of Rs. 109 crores, the share of Alfa Transformers Ltd started Tuesday’s trading session on a higher note at Rs. 119.05 compared to its previous close of Rs. 116.75. Within a few minutes of the opening bell, the shares clocked 2 percent at Rs. 119.05, also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a purchase order worth Rs. 48.73 lakhs from GVPR Engineers Limited to design, manufacture and supply 11KV, 33KV LVRT, 2000 KVA and 1.5 MVA transformers. The orders are to be executed within 5 weeks from the date of receipt of the order.
Coming onto the company’s financial statement, the revenue increased by 12 percent from Rs. 12.38 crores in the June quarter to Rs. 13.87 crores during the September quarter. In addition, the net profits magnified by 393 percent from Rs. 1.23 crores to Rs. 6.06 crores during the same timeframe.
Looking at the important financial ratios, the return on equity was recorded at 5.93 percent during FY22-23 and the return on capital employed was at 7.75 percent during the same period.
Furthermore, the company’s profitability may enable it to invest in research and development as well as prototype testing for solar and wind power transformers. Moreover, the company product range was increased from 12 KV Class to 36 KV Class transformers.
Alfa Transformers was incorporated in 1982. The company is engaged in the design, manufacture, repair, and sale of electrical transformers. They offer a range of products, including dry-type transformers, oil-filled transformers, pad-mounted transformers, substation transformers, pole-mounted transformers, and custom-designed transformers for special applications.
Written By Vaibhav Patil
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