Shares of this multibagger stock under the ‘small-cap’ category jumped nearly 4 percent in Monday’s trading session after receiving a service order worth Rs 6.75 crores from Tata Power Company Limited. In the past month, the company’s stock rose nearly 25 percent.
With a market capitalization of Rs 2,062.87 crores, the stocks of GE Power India Limited opened their trading hour on Monday at Rs 296.05 and are currently trade at Rs 306.85, gaining approximately 4 percent as compared to the previous close of Rs 295.55 apiece.
Such bullish stock price movements in the company’s share price were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about securing a service order worth Rs 6.75 crores from “Tata Power Company Limited”.
The abovementioned service order pertains to the overhaul and other works for turbine generators. The time period for executing the order is decided to be 55 Days from the date of receipt of the same.
Keeping a purview of one year, the company’s stock delivered multibagger returns of approximately 175 percent for 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 2.75 lakhs.
During the recent financial quarters, the company’s prime indicators of business such as operating revenues as well as after-tax numbers showed positive movements with the former taking a shift from Rs 354 crores during Q2FY24 to Rs 456 crores during Q3FY24 and the latter, keeping the timeframe the same, drastically reducing its losses from Rs 61 crores to just Rs 1 crore.
As per the recent presentations, the company’s order book in backlog stands at Rs 3,437 crores. In Q3FY23, the company received 62 percent of its orders from private entities and the remaining 38 percent from public companies, which, in Q3FY24, changed to a 60:40 ratio increasing orders from Government-owned companies.
GE Power India Limited is engaged in the business of constructing, engineering, procurement, manufacturing, and servicing power plants as well as equipment in India. Generating a majority of revenue domestically, the company offers products including high-pressure and beater mills, and many more.
Written by Amit Madnani
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