Transformers stocks in India are primarily represented by companies engaged in the manufacturing of power transformers, which are crucial for electricity transmission and distribution.
In India, the transformer stocks sector is viewed as a promising investment opportunity, with a positive outlook driven by favourable market conditions and government support for renewable energy initiatives.
Listed below is one such transformer stock that has delivered more than 1,800 percent return in one year:
Marsons Ltd
With a market capitalization of Rs. 2,137 crores, the shares of the company engaged in manufacturing transformers started Thursday’s trading session on a higher note at Rs. 124.15, locking a 5 percent upper circuit compared to its previous close of Rs. 118.24 apiece.
Looking at the company’s financial performance, the revenue zoomed around 693 percent from Rs. 3.77 crores during the March quarter to Rs. 29.88 crores in the June quarter. On the other hand, the net profits magnified by 1,064 percent from Rs. 45 lakhs to Rs. 5.24 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue surged from Rs. 23 lakhs during Q1FY24 to Rs. 29.88 crores in Q1FY25. In addition, the net profits showcased a transition from a net loss of Rs. 43 lakhs to a net profit of Rs. 5.24 crores during the same timeframe.
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In August 2023, the stock price was trading at Rs. 5.95 exhibiting a gain of over 1,889 percent compared to the current price. For example, if someone had invested Rs. 10,000 into the company’s stock 1 year ago, it would have converted to approximately Rs. 1.98 lakhs now.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 4.41 percent and a return on capital employed (RoCE) of 2.72 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was at 9.73 percent.
According to the latest shareholding pattern, Promoters hold 53.65 percent of the shares, and Retail Investors hold the remaining 46.34 percent.
Marsons Ltd has a diverse customer base that includes prominent domestic and international clients. Domestically, it serves major organizations such as the Power Grid Corporation of India (PGCIL), National Thermal Power Corporation (NTPC), and various State Electricity Boards across multiple states.
Internationally, Marsons exports to over 16 countries, with notable clients including Castle Cement in the UK and Yesu PLC in Ethiopia.
Marson’s current research projects focus on enhancing productivity and reducing costs with copper drawing machines, as well as developing 100 MVA/132 kV and 160 MVA/220 kV transformers and utilizing twin conductors instead of single ones.
The company’s future research will explore green transformers for both rural and urban areas, 3-phase pad-mounted transformers, and amorphous core technology.
Incorporated in 1976, Marsons Ltd is a manufacturer and supplier of power and distribution transformers, specializing in a range of products including furnace transformers and dry type transformers, with capacities from 10 KVA to 160 MVA at 220 kV class.
Written By Vaibhav Patil
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