The Shares of this small-cap company, which manufactures AC generators and electric motors, surged over 6 percent after securing two orders totaling Rs. 142 crore for gas engine generators.
Share price variations:
With a market capitalization of Rs. 6,382.44 crores, TD Power Systems Ltd. rose to an intraday high of Rs. 409.80 representing a 6.19 percent increase from its previous closing price of Rs. 385.60 per share.
Reason for the Rise:
According to exchange filings, TD Power Systems Ltd. secured export orders worth Rs. 142 crores from two leading international gas original engine equipment manufacturers for the supply of gas engine generators. The deliveries will be split between this financial year and the next, with the company anticipating additional orders in this segment over the coming quarters.
Recent Contracts Received:
In July, the company secured a USD 9.28 million order for gas turbine generators from a major US original equipment manufacturer. The generators will be used in fracking wells, for power supply and backup at AI server farms in the US, and for other applications.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 32 percent to Rs. 35.35 crores compared to Rs. 26.65 crores in Q1FY24, while revenue from operations also marked an increase of 24.28 percent to Rs. 273.78 crores from Rs. 220.29 crores in comparison to the same period.
The company has consistently improved its ROC and ROCE over the past five years, rising from 4.55 percent and 5.75 percent in FY20 to 18.07 percent and 25.12 percent in FY24, respectively. The company’s shares have delivered a 39 percent return over the past six months and 51 percent year-to-date.
As of Q1 FY25, the company’s order book stands at Rs. 1,215 crores, with 43.09 percent from exports, 32.45 percent from railway orders, 21.76 percent from domestic clients, and 1.36 percent and 1.31 percent from sales in Turkey and spare parts, respectively. The company is also debt-free.
About the company:
TD Power Systems Ltd manufactures AC generators and electric motors for diverse applications and offers a product portfolio that includes generators for turbines, engines, and customized special applications such as locomotives, marine and naval use, oil and gas, geothermal, and solar thermal. Additionally, it produces various types of electric motors.
The company operates four manufacturing facilities and 52 service centers across all six continents and installed 122 generators in Q1 FY25.
As of Q2 FY25, Foreign Institutional Investors (FIIs) hold 16.24 percent, and Domestic Institutional Investors (DIIs) hold a 29.64 percent stake in the company.
Written By: Joseph Pv
Disclaimer
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.
