A multi-bagger is an equity stock that generates returns multiple times higher than its initial investment. The transformer manufacturing company has consistently generated profit even during the COVID-19 pandemic.
The stocks in this list have strong fundamentals and have delivered multi-bagger returns of more than 1800 percent in the last three years.
The company’s shares ended Thursday’s session with a 1.18 percent Rs 2,718 increase over its previous close of Rs 2,687. It has a market capitalization of Rs 2,050 crores.
The script has been successful in producing multi-bagger returns of about 560 percent while maintaining a one-year preview and 3,000 percent in three years. This indicates that within three years, the stock would have appreciated to Rs 30 lakhs if someone had invested Rs 1 lakh.
The company has no debt and a higher net profit margin of 15.4 than the historical 3-year NPM margin. The company’s average ROE for the last 3 years is 23.58. And its PE of 29.42 is lower than the industry average.
According to the company’s financials, operating revenues increased from Rs 59.7 crores in Q2FY23 to Rs 106 crores in Q2FY24. Moreover, during the same period, net profit increased from Rs 9.13 crores to Rs 24.4 crores.
Shilchar Technologies Ltd. is a prominent electronics and telecom, power, and distribution transformer manufacturer in India. With advanced facilities, competent manpower, and competitive pricing, they have established themselves as a world-class transformer manufacturer. The company caters to a wide range of industrial segments, from utilities to the renewable energy sector, and provides its products to individual retail customers worldwide.
The company’s shares closed 0.44 percent Rs 195.10 higher than their previous close of Rs 194.25 on Thurday. It has a market capitalization of Rs 2,700 crores.
Keeping a preview of one year, the script has been successful in delivering multi-bagger returns of around 225 percent in a year and 1,800 percent in three years. It means that if someone had invested Rs 1 Lakh into the stock, it would have converted to Rs 18 Lakhs within three years.
The company has a low debt-to-equity ratio of 0.84 and a net profit margin of 3.07 higher than the historical 3-year NPM margin.
Operating revenues declined from Rs 325 crores in Q2FY23 to Rs 257 crores in Q2FY24, according to the company’s financial statements. Furthermore, net profit increased from Rs 12.2 crores to Rs 1.89 crores during the same period.
Transformers & Rectifiers Limited, founded in 1994, has established itself as a manufacturer of a diverse range of transformers that meet the quality expectations of both the domestic and international markets.
Written by Sriram KV
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.