Shares of this micro-cap stock associated with the business of ‘Electrical Equipment’ hit the 5 percent upper circuit in Monday’s trading session after the company received a work order worth Rs 1.60 crores from Tata Power Southern Odisha Distribution Limited (TPSODL).
With a market capitalization of Rs 71.56 crores, the stocks of Alfa Transformers Limited started their trading session on Monday at Rs 78.20 hitting the 5 percent upper circuit, and are currently locked at the same stock price. The locked price also represents the company’s new 52-week high mark.
Such stock price movements are observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has secured a purchase order worth Rs 1.60 crores from ‘Tata Power Southern Odisha Distribution Limited’.
The above order is for manufacturing and supplying 7-11 KV 500KVA Line Voltage Regulator Transformers. The time period for the execution of the same is decided to be within 3 months from the date of receipt of the order.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of 112 percent for its stakeholders, viz, if someone had invested Rs 1 lakh into the stock six months ago, it would have converted to Rs 2.12 lakhs.
During the recent financial quarters, the company outperformed as far as the operating revenues and after-tax profit numbers are concerned. The former jumped from Rs 12.38 crores during Q1FY23-24 to Rs 13.87 crores during Q2FY23-24 and the latter, during the same horizon, increased drastically from Rs 1.23 crores to Rs 6.06 crores.
After facing negative numbers in FY21-22, the company bounced back in FY2-23 and reported healthy profitability ratios, viz, return on capital employed (RoCE) which was reported at 27.98 percent.
Founded in 1982, Alfa Transformers Limited is involved in the business of manufacturing power as well as distribution of transformers and rendering other repairing services. The company derives a majority of its revenue from India by way of selling transformers.
Written by Amit Madnani
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