Shares of this microcap company clocked 10 percent upper circuit in Monday’s trading session after announcing receiving an order worth Rs. 12.41 crores during March 2024. The stock was listed on the stock market on December 29, 2023, with a share price of Rs. 98, which represented a premium of 50.8 percent over the IPO price.
With a market capitalization of Rs. 319 crores, the shares of Supreme Power Equipment Ltd started Monday’s trading session on a higher note at Rs. 121.90 compared to its previous close of Rs. 116.05. During the trading session, the shares locked 10 percent upper circuit at Rs. 127.65 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received multiple orders worth Rs. 12.41 crores during March 2024 for the supply of power and distribution transformers. The orders were received from both government and private sector.
By the end of March 2024, Supreme Power Equipment’s order book totals Rs. 51.35 crores, encompassing both government and private sector contracts. Government orders contribute Rs. 26.38 crores, indicating a significant portion of the company’s contracts originate from public sector projects. Additionally, Rs. 24.97 crore worth of orders come from private entities, showcasing diversified clientele and revenue streams.
Coming onto the company’s standalone statement, the revenue zoomed by 62 percent from Rs. 47 crores during FY21-22 to Rs. 76 crores in FY22-23. In addition, the net profits magnified by 1,000 percent from Rs. 1 crore to Rs. 11 crores during the same timeframe.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 7.16 percent during FY 21-22 to 59.93 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 29.16 percent to 73.32 percent during the same timeframe. Furthermore, the net profit margin increased from 1.11 percent during FY21-22 to 14.32 percent during FY22-23.
According to the latest shareholding pattern, Promoters have 56.56 percent of stakes in the company, the Public or Retail Investors have 22.91 percent of shares, FIIs have a considerable stake of 9.21 percent and the remaining 11.31 percent of shares are with DIIs.
Headquartered in Tamil Nadu, Supreme Power Equipment was incorporated in 1994. The company is engaged in manufacturing, upgrading, and renovating various types of transformers such as power transformers, generator transformers, windmill transformers and more.
Written By Vaibhav Patil
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