On Thursday, the transformer manufacturer’s stock experienced a 5 percent decline, reaching ₹83.60 per share, even though the company secured an order valued at ₹76.70 lakhs.
On February 29 in early trading, Alfa Transformers Ltd. shares hit a 5 percent lower price of ₹83.60 per share, on the Bombay Stock Exchange on Thursday, with a market capitalization of ₹76.50 crore.
According to the company’s exchange filing, the company received a purchase order worth ₹76.70 lakh from Regard Network Solution Private Limited.
For the design, manufacturing, supply, and installation of 2.0 MVA, 33/0.433KV,11 KV, and 11 transformers from the Bhubaneswar plant. The company is committed to executing the order within 30 days from the date of its receipt.
Alfa Transformers Limited is engaged in the production of electrical distribution transformers. The company is a major supplier to multinationals and domestic clients.
Alfa Transformers Ltd. shares have gained 86 percent in the last six months and a multibagger return of 300 percent in a year. A one-lakh rupee investment in the firm would be worth ₹4 lakhs in a year.
According to the current shareholding pattern, the promoters control 47.49 percent of the corporation, while individual investors own 52.51 percent.
The company’s operational revenue has increased by 11 percent year on year from ₹12.09 crores in Q3FY23 to ₹13.37 crores in Q3FY24, while net profit decreased by 75 percent from ₹0.87 crores to ₹0.22 crores.
Over the past 10 trading days, the stock has consistently triggered lower circuit limits. On February 29th, the stock experienced a decline, reaching a 5% lower circuit after a slight market downturn.
Due to the limited liquidity of penny stocks, a small number of orders can trigger circuit limits. Therefore, individual investors are advised to thoroughly research high-return penny stocks before making any purchases, as these stocks exhibit inconsistent performance and pose a significant risk to retail investors.
Written by Omkar Chitnis
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