The global transformer market is expected to grow to USD 38.91 billion by 2030, driven by rising electricity demand and the growth of renewable energy like solar and wind power.
The Indian transformer industry is well-positioned to capitalize on the surge in domestic and international demand, driven by factors like renewable energy growth, grid upgrades, and global infrastructure spending.
Listed below are such transformers stocks with PE less than the Industry:
Voltamp Transformers Ltd
With a market capitalization of Rs. 11,861 crores, the shares of Voltamp Transformers started Friday’s trading session on a higher note at Rs. 11,900 compared to its previous close of Rs. 11,849.45.
During the trading session, the shares hit a low of Rs. 11,791.95, losing around 1 percent and are currently trading at Rs. 11,838 apiece.
Looking at the company’s financial performance, the revenue increased by 24 percent from Rs. 408 crores during the December quarter to Rs. 504 crores in the March quarter. On the other hand, the net profits declined marginally by around 1 percent from Rs. 95 crores to Rs. 94 crores during the same period.
In terms of key financial metrics, the company reported a return on equity of 22.70 percent and a return on capital employed of 29.11 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 19.01 percent during the same timeframe.
Furthermore, the stock might be deemed undervalued, given its PE ratio of 39.7 times, in contrast to the industry average of 63.2 times and the company boasts a debt-to-equity ratio of ‘zero’, indicating that it has not utilized borrowing to fund its operations.
Shilchar Technologies Ltd
With a market capitalization of Rs. 4,651 crores, the shares of Shilchar Technologies started Friday’s trading session on a higher note at Rs. 6,098 compared to its previous close of Rs. 6,023.85.
During the trading session, the shares hit a low of Rs. 6,000, losing around 1 percent and are currently trading at Rs. 6,003 apiece.
Coming onto the company’s financial statements, the revenue decreased by 11 percent from Rs. 118 crores during the December quarter to Rs. 105 crores in the March quarter. On the other hand, the net profits declined by 4 percent from Rs. 26 crores to Rs. 25 crores during the same period.
In terms of key financial metrics, the company reported a return on equity of 43.84 percent and a return on capital employed of 58.01 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 23.15 percent during the same timeframe.
Furthermore, the stock might be deemed undervalued, given its PE ratio of 50.6 times, in contrast to the industry average of 63.2 times and the company boasts a debt-to-equity ratio of ‘zero’, indicating that it has not utilized borrowing to fund its operations.
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Supreme Power Equipment Ltd
With a market capitalization of Rs. 790 crores, the shares of Supreme Power Equipment started Friday’s trading session on a positive note at Rs. 317, gaining around 0.32 percent compared to its previous close of Rs. 316 apiece.
Looking at the company’s financial statements, the revenue increased by 15 percent from Rs. 53 crores during Q3FY24 to Rs. 61 crores in Q4FY24. In addition, the net profits jumped by 14 percent from Rs. 7 crores to Rs. 8 crores during the same timeframe.
In terms of key financial metrics, the company reported a return on equity of 18.94 percent and a return on capital employed of 28.17 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 12.60 percent during the same timeframe.
Furthermore, the stock might be deemed undervalued, given its PE ratio of 56.4 times, in contrast to the industry average of 63.2 times and the company has a low debt-to-equity ratio of 0.12 percent which means it has not relied much on debt to fund its operation.
Indo Tech Transformers Ltd
With a market capitalization of Rs. 2,198 crores, the shares of Indo Tech Transformers started Friday’s trading session on a higher note at Rs. 2,080, gaining around 4 percnet compared to its previous close of Rs. 1,999.40 and are currently trading at Rs. 2,043 apiece.
Coming onto the company’s financial performance, the revenue zoomed by 25 percent from Rs. 139 crores during the December quarter to Rs. 175 crores in the March quarter. In addition, the net profits magnified by 136 percent from Rs. 11 crores to Rs. 26 crores during the same period.
In terms of key financial metrics, the company reported a return on equity of 21.57 percent and a return on capital employed of 27.30 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 9.30 percent during the same timeframe.
Furthermore, the stock might be deemed undervalued, given its PE ratio of 46.9 times, in contrast to the industry average of 63.2 times and the company has a low debt-to-equity ratio of 0.02 percent which means it has not relied much on debt to fund its operation.
Written By Vaibhav Patil
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