This micro-cap transformer stock engaged in designing, manufacturing, and installing electrical equipment for power distribution and infrastructure development across various sectors, hit a 5 percent upper circuit after receiving an order worth Rs. 62 crore from Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (MPMKVVCL).
With a market capitalization of Rs. 219.13 crores, the shares of Star Delta Transformers Limited hit a 5 percent upper circuit of Rs. 730.40 per share on Wednesday, up from its previous closing price of Rs. 695.65 per share.
Star Delta Transformers Limited has received a new order worth Rs. 61.99 crores from Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited. This order includes the supply, installation, testing, and commissioning of 11 KV lines, LT lines using AB cables, distribution transformers, and related infrastructure.
The project is part of the Feeder Separation work under the RDSS scheme and will be completed within 24 months. The order is from a domestic client and is part of regular business.
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Star Delta Transformers Limited was established in 1977, is an India-based company focused on manufacturing and supplying electrical transformers. The company serves electricity boards and infrastructure firms, emphasizing quality and innovation in power distribution solutions, with exports to countries like Azerbaijan and Myanmar.
The company serves a wide range of clients, including L&T, BHEL, Bajaj Electricals, Blue Star, KEI Industries, BGR Energy, and several power and infrastructure companies, providing transformers and electrical solutions for various large-scale projects.
Coming into the financial highlights, Star Delta Transformers Limited’s revenue has decreased from Rs. 35.16 crore in Q3 FY24 to Rs. 32.77 crore in Q3 FY25, which represents a drop of 6.80 percent. The net profit has also decreased by 12.65 percent from Rs. 2.45 crore in Q3 FY24 to Rs. 2.14 crore in Q3 FY25.
Star Delta Transformers Limited’s revenue and net profit have grown at a CAGR of 98.13 percent and 76.52 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 23.2 percent and 16.3 percent, respectively. Star Delta Transformers Limited has an earnings per share (EPS) of Rs.32.3, and its debt-to-equity ratio is 0.07x.
Written By – Nikhil Naik
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