The Indian market for smart meters and transformers is experiencing significant growth, driven by advancements in technology and increased investments in infrastructure.
Smart meters, which enable real-time monitoring of energy consumption, are becoming essential in the push for energy efficiency and management. The Indian government’s focus on digital transformation in the energy sector is catalyzing this growth, attracting both domestic and foreign investments.
Listed below is one such microcap company that is engaged in manufacturing electrical equipment:
Akanksha Power & Infrastructure Ltd
With a market capitalization of Rs. 248 crores, the shares of Akanksha Power & Infrastructure Ltd started Wednesday’s trading session on a higher note at Rs. 134 compared to the previous close of Rs. 130.25.
During the trading session, the shares hit a high of Rs. 136, gaining around 2 percent and are currently trading at Rs. 130 apiece.
Financials
Looking at the company’s financial performance, the revenue jumped by around 23 percent from Rs. 46.09 crores during FY22-23 to Rs. 56.53 crores in FY23-24. On the other hand, the net profits decreased marginally by around 2 percent from Rs. 2.84 crores to Rs. 2.79 crores during the same period.
Akanksha Power & Infrastructure Ltd was listed on the National Stock Exchange (NSE) SME platform on January 3, 2024. The stock was listed at Rs. 62, which is a 12.7 percent premium to its issue price of Rs. 55.
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Financial key metrics
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 6.44 percent and a return on capital employed (RoCE) of 11.32 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 5.15 percent.
Recent orders
Earlier, the company also received purchase orders from Ashoka Buildcon Limited for the Supply of Power Quality Solutions worth over Rs. 23.66 crores.
Akanksha Power & Infrastructure Ltd (APIL) is actively pursuing an expansion of its Power Quality Solutions (PQS) segment as part of its long-term business strategy.
Additionally, the company has entered into a collaboration with a multinational corporation (MNC), which involves an agreement to acquire a product line along with the associated technology.
This strategic move is aimed at enhancing APIL’s offerings in the rapidly growing market for power quality solutions, particularly in the context of India’s increasing demand for smart energy meters and improved power management systems.
By acquiring new technologies through this partnership, APIL can improve its existing product lines, such as Automatic Metering Infrastructure (AMI) and power quality measurement products, thereby enhancing the efficiency and reliability of its solutions.
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Clients
Akanksha Power & Infrastructure Ltd serves a diverse range of notable clients across various sectors. Major clients include Military Engineer Services, Indian Oil Corporation Limited, Coal India Limited, Hindustan Aeronautics Limited, Larson & Toubro Limited and others.
APIL manufactures a range of transformers, including Current Transformers (CT) and Voltage Transformers (PT), which are crucial for measuring electrical currents and voltages in power systems. They also produce Instrument Transformers, designed for precise measurement and protection within electrical networks.
Furthermore, Akanksha Power & Infrastructure Ltd (APIL) offers advanced smart meters as part of their AMI (Advanced Metering Infrastructure) solutions.
The Indian government’s Smart Meter National Programme (SMNP) aims to replace 250 million conventional meters with smart meters. This presents a significant market opportunity for APIL’s smart meters, which are well-positioned to capitalize on this growing demand.
Other products
The company also produces a range of electrical panels, including Motor Control Centers (MCC), Power Control Centers (PCC), and Automatic Power Factor Correction (APFC) panels. These products are designed to improve power quality and operational efficiency in electrical systems.
Guidance
The company has projected sales of Rs. 80 crore for FY 2024-25. It has already confirmed a top line of Rs. 82 crore, which includes unexecuted orders to be completed by March 31, 2025. Additionally, the company aims to exceed Rs. 100 crores in sales during this fiscal year.
Akanksha Power & Infrastructure Ltd (APIL) is strategically positioned in the smart meter and transformer sectors, focusing on advanced metering infrastructure (AMI) and high-quality electrical equipment manufacturing.
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Established in 2008, the company has developed a robust portfolio that includes smart energy meters, transformers, and various electrical panels, catering to a diverse clientele that spans institutions, industries, and utility companies.
Written By Vaibhav Patil
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