Shares of this multibagger stock under the ‘micro-cap’ category hit the 2 percent upper circuit after the company successfully received an order worth Rs 1.09 crores from Tata Power Southern Odisha Distribution Limited (TPSODL).
With a market capitalization of Rs 84.38 crores, the stocks of Alfa Transformers Limited started their trading session on Monday hitting the 2 percent upper circuit at Rs 92.21, and currently trade at the same share price.
Such sharp movements in the stock price were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has secured an order worth Rs 1.09 crores from “Tata Power Southern Odisha Distribution Limited” (TPSODL).
The above order pertains to the design, manufacture, and supply of 100 KVA 11/0.4KV AL Transformers BIS Level-II from the company’s Vadodara plant. The time period for the execution of the abovementioned order is within 30 days from the date of receipt of the order.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of a whopping 430 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 5.30 lakhs.
During the recent financial quarters, the company, on a standalone basis, reported an increase in its basic business indicators such as operating revenues and after-tax profits.
The former moved marginally from Rs 12 crores during Q1FY23-24 to Rs 13 crores during Q2FY23-24, and the latter, during the same time horizon, spiked from Rs 1 crore to Rs 6 crores.
Coping with the underperformance previous financial year, the company’s profitability ratios, viz, return on equity (RoE) as well as return on capital employed (RoCE), showed positive movements with the former reported aggressively at 74.85 percent and the latter at 7.60 percent.
Incorporated in 1982, Alfa Transformers Limited is engaged in the business of manufacturing power as well as distribution of transformers & rendering repairing services. Geographically, the company derives a majority of its revenue from domestic operations within India by way of sale of transformers.
Written by Amit Madnani
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