This Microcap stock which is under Rs. 50 which specializes in the business of involved EPC Power and Solar projects and other activities hit a 10 percent upper circuit after the company received an order worth Rs. 55.43 crore for 132/33 kV substation project.
Price Action
With a market capitalization of Rs. 110.68 Crores, the shares of Promax Power Limited were up by 10 percent in the day’s trade touching a day’s high of Rs. 44.27 per share. The stock stayed in the upper circuit limit which is 10 percent higher than the previous closing price of Rs. 40.25 apiece. The stock has delivered a return of 51 percent which has outperformed the Nifty Index in the past year.
What Happened
The company has received orders worth Rs. 55.43 crore for Design. Supply, Erection, Testing, and Commissioning of 4 Nos of 132 kV substation along with fully equipped control room buildings. It even involves Supply and Installation of 4 Nos 132/33 kV, 31.5 MVA Transformers and Construction of 3 Nos complete 132kV substation bays.
About the Company
Promax Power Limited was founded in 2004. They specialize in engineering, procurement, and construction (EPC) services for the power sector. The company focuses on turnkey projects including power substations, transmission lines, and renewable energy solutions. With a dedicated in-house design team, Promax aims to deliver cost-effective and reliable solutions while ensuring high-quality project execution. The business model focuses on efficiency and sustainability, catering to both public and private sector clients in India’s growing energy market.
Financials & Ratios
Its Revenue from operations grew by 2.19 percent year on year from Rs. 28.72 Crores in H1FY24 to Rs. 29.35 Crores in H1FY25, accompanied by a profit of Rs. 0.44 Crores to a profit of Rs. 1.27 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 9.52 percent and the return on equity (RoE) stood at 5.37 percent. The net profit margin stood at 2.27 percent and the debt-to-equity ratio stood at 0.45 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 69.24 percent in Promax Power, Domestic Institutional Investors (DII) holding around 0.11 percent, and public holdings standing at 30.65 percent.
Written by Santhosh S
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