Shares of this micro-cap company surged 7 percent in Thursday’s trading session after achieving a significant milestone. The stock was listed on the stock market on December 29, 2023, with a share price of Rs. 98, which represented a premium of 50.8 percent over the IPO price.
With a market capitalization of Rs. 345 crores, the shares of Supreme Power Equipment Ltd started Thursday’s trading session on a higher note at Rs. 133 compared to its previous close of Rs. 129.45. During the trading session, the shares hit a high of Rs. 141.80, gaining around 7 percent and closed the day at Rs. 138 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it achieved a significant milestone by securing a new order worth Rs. 10 Crore in February 2024 for 160 units of 250 KVA.
Furthermore, Supreme Power Equipment has successfully manufactured and supplied over 15,000 units to date. In addition to the notable purchase order, the company’s expanded order book now stands at Rs. 61.47 crores, bolstering its revenue pipeline and reinforcing its pivotal role within the industry.
Coming onto the company’s standalone statement, the revenue zoomed by 62 percent from Rs. 47 crores during FY21-22 to Rs. 76 crores in FY22-23. In addition, the net profits magnified by 1,000 percent from Rs. 1 crore to Rs. 11 crores during the same timeframe.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.16 percent during FY 21-22 to 59.93 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 29.16 percent to 73.32 percent during the same timeframe. Furthermore, the net profit margin increased from 1.11 percent during FY21-22 to 14.32 percent during FY22-23.
According to the latest shareholding pattern, Promoters have 56.56 percent of stakes in the company, the Public or Retail Investors have 22.91 percent of shares, FIIs have a considerable stake of 9.21 percent and the remaining 11.31 percent of shares are with DIIs.
Incorporated in 1994, Supreme Power Equipment Limited is engaged in manufacturing, upgrading, and renovating various types of transformers such as power transformers, generator transformers, windmill transformers, etc.
Written By Vaibhav Patil
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