As we have entered the third quarter of FY23-24, most of the companies have disclosed their shareholding pattern data for the latest quarter, i.e., the quarter ending September 2023.
Listed below is one multibagger stock engaged in the “Electrical Equipment” industry which attracted investments from Mutual Funds (MFs) as well as Foreign Institutional Investors (FIIs) during the quarter ended September 2023:
TD Power Systems Limited
With a market capitalization of Rs 3,879.27 crores, the stocks of TD Power Systems Limited are currently trading at Rs 248.40, slipping around 2 percent as compared to the previous close of Rs 253.10 apiece. The company’s stock is trading near its 52-week high price recorded at Rs 288.10.
Having a glance at the latest shareholding data reported by the company, both, mutual funds as well as foreign institutional investors have increased their stake in the company.
Firstly, the mutual funds increased their stake by 15.68 percent, i.e., from 15.76 percent during the June 2023 quarter to 31.44 percent during the September 2023 quarter.
Moreover, the foreign institutional investors increased their stake by 7.50 percent, i.e., from 2.61 percent during the June 2023 quarter to 10.11 percent during the September 2023 quarter.
During the recent financial years, the company has successfully been able to increase its operating revenues as well as net profits with the former moving up from Rs 797.42 crores during FY21-22 to Rs 872.3 crores during FY22-23, and, the latter, during the same time horizon, shifting up from Rs 70.5 crores to Rs 96.81 crores.
As a result of the same, the basic profitability ratios of the company showed positive movements with the return on equity (RoE) increasing from 14.11 percent during FY21-22 to 17.11 percent during FY22-23. Moreover, the return on capital employed (RoCE) took an upward shift from 17.69 percent to 22.29 percent.
In addition, the company’s net profit margins have consistently increased during the last few periods with the most recent movement being from 7.79 percent during FY21-22 to 9.52 percent during FY22-23. The debt-to-equity ratio of the company dropped down to ‘nil’ during the latest reported financial year.
Keeping a purview of a year, the company’s stock has delivered multibagger returns of 103 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 2.03 lakhs.
TD Power Systems Limited is involved in the business of manufacturing alternating current (AC) generators for gas turbines, steam turbines, diesel engines, wind turbines, and many more. Geographically, the company offers its products within as well as outside India.
Written by Amit Madnani
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