A key player in the transformer manufacturing sector, is gaining attention as it trades at a potential discount. With ambitious growth plans and a strong market presence, the company’s current valuation may present an attractive opportunity for investors.
Share price movement
During Friday’s trading session, shares of Shilchar Technologies Ltd. traded at Rs. 5,599.95 apiece, reflecting a 30 percent decline from its all-time high of Rs. 8,899.00 per share. The stock touched an intraday high of Rs. 5,998.95, registering a 3.8 percent gain from its previous close of Rs. 5,774.05.
What happened
Shilchar Technologies Ltd., a key player in the transformer manufacturing sector, has seen a 30 percent decline from its all-time high share price due to multiple factors.
Broader market weakness has contributed to the stock’s downturn, with a notable 5 percent drop on January 13, 2025, extending a three-day losing streak that resulted in an 8.56 percent loss. Sector-specific challenges have also played a role, as the company has underperformed within the electric equipment industry.
Additionally, the stock faced sustained selling pressure, experiencing a six-day consecutive decline as of January 28, 2025, resulting in a cumulative 19.64 percent loss. These factors indicate a combination of broader market trends, sector challenges, and investor sentiment affecting the company’s stock performance.
Business Sectors
The company operates across several sectors, including manufacturing transformers for power, industrial, and distribution applications. Shilchar Technologies is undertaking capacity increases to meet the growing demand, aligning with the National Infrastructure Pipeline (NIP).
Capacity Enhancement
Shilchar Technologies Ltd. has recently expanded its production capacity from 4,000 MVA to 7,500 MVA, strengthening its position in the transformer manufacturing sector. The company specializes in transformers with ratings of up to 50 MVA and 132 kV class, catering to diverse industrial and power transmission needs. This expansion aligns with its strategic focus on scaling operations and meeting growing market demand.
International Footprints
Shilchar Technologies Ltd. has a strong international presence, exporting 52 percent of its products to key markets across the globe. In the Americas, the company serves the USA, Chile, and Canada, while in Europe, it has a footprint in Iceland, Slovenia, and Romania. Additionally, the company has expanded its reach in Asia, catering to markets in Vietnam, Malaysia, Indonesia, and Bangladesh, reinforcing its position as a global transformer manufacturer.
Financial Performance
For the quarter ending December 2024, the company reported revenue from operations of Rs.154 crore, reflecting a significant 31 percent increase compared to Rs.118 crore in the same quarter of the previous year. Profit After Tax (PAT) rose by 35 percent, reaching Rs.35 crore from Rs.26 crore in the same period.
Company Profile
Shilchar Technologies operates as a prominent transformer manufacturing company, offering a wide range of products and services. The company’s focus on innovation, quality, and customer satisfaction has helped it establish a strong position in the market.
Written by – Siddesh S Raskar
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