Shares of this multibagger stock under the ‘small-cap’ category hit 5 percent upper circuit after the company successfully bagged an order from a U-based company for the supply and manufacture of converter transformers.
With a market capitalization of Rs 12,888.10 crores, the stocks of GE T&D India Limited started their trading session on Friday at Rs 503.35 and currently are locked at the same price representing the company’s 5 percent upper circuit as well as the fresh 52-week high mark.
Such bullish stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about securing an order from a U-based company. The order pertains to the supply and manufacture of HVDC converter transformers with a total consideration of the order being GBP 74 million.
The order will be executed starting from December 2023 till October 2026. Both entities are a part of the GE Group and the related party transaction was approved in the latest AGM of the company.
Keeping a purview of six months, the company’s stock has delivered multibagger returns of 130 percent, viz, if someone invested Rs 1 lakh into the stock six months ago, it would have converted to Rs 2.30 lakhs.
During the recent quarters, the company’s financial performance has shown opposing movements as far as the operating revenues and net profits are concerned.
The former, on one end, fell from Rs 717.57 crores during Q1FY23-24 to Rs 697.76 crores during Q2FY23-24, and, the latter, on the other end, jumped from Rs 28.24 crores to Rs 37.17 crores keeping the timeframe the same.
As per the recent presentations, the in-hand order book of the company portrays the majority of orders, viz, 75 percent, from private parties worth Rs 32,642 million, 15 percent from Central Utilities & PSUs worth Rs 6,629 million, and the rest 10 percent from State Utilities worth Rs 4,106 million.
GE T&D India Limited is an India-based company that is engaged in the business of power transmission and other associated activities. The company engages in the manufacture and sale of electrical transmission and distribution products such as gas-insulated switchgear, transformers, generator circuit breakers, and many others.
Written by Amit Madnani
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