Transformer stock engaged in the business of manufacturing, upgrading, and renovating various types of transformers jumps 3 percent in the day’s trade upon being approved as a vendor for the supply of power and distribution transformers to the Kerala State Electricity Board.
Price Action
With a market capitalization of Rs. 555 Crores, the shares of Supreme Power Equipment Limited were trading at Rs. 222 per equity share, down 0.10 percent from its previous day’s close price of Rs. 222.15.
What Happened
Supreme Power Equipment Limited (SPEL) has announced that it has been officially approved as a vendor for the supply of power and distribution transformers to the Kerala State Electricity Board (KSEB).
This approval allows Supreme Power Equipment Limited to bid for KSEB tenders, establishing it as a key supplier of high-quality transformers to Kerala’s electricity board, local governing bodies, licensed contractors, and private buyers. With this SPEL aims to establish a stronger foothold in Kerala, one of the key markets in the power sector.
With Kerala focusing on upgrading its power infrastructure to support increasing demand and enhance operational efficiency, by participating in the tenders, SPEL not only stands to increase its order book but also anticipates a significant boost to its revenue streams, further reinforcing its position as a key player in the transformer manufacturing industry.
About the Company
Supreme Power Equipment Limited is engaged in the business of manufacturing, upgrading, and renovating various types of transformers such as power transformers, generator transformers, windmill transformers, and many more. It has an order book of Rs 60+ Crores.
It has a strong customer base with well-known players like Siemens, Suzlon, Larsen & Toubro, Triveni Engineering & Industries, Swelect, Vestas, Tamil Nadu Electric Board, and many others.
Financials and Ratios
Its revenue from operations grew by 10 percent from Rs. 53 Crores in H1FY24 to Rs. 58 Crores in H1FY25, accompanied by profits of Rs. 7 Crores in both years.
In terms of Return ratios, it has reported a return on equity (ROE) of 30.4 percent, and a Return on capital employed (ROCE) of 37.2 percent. It has reported a debt-to-equity ratio of 0.03.
Written by: Bharath K.S
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.
