Shares of this multibagger diamond stock hit the 5% upper circuit limit following the Board’s approval on 11 December 2024 for the acquisition of machinery and equipment worth Rs.49.74 crore from four entities. This move is expected to boost production capabilities and strengthen the company’s market position.
Price Movement
Diamond Power Infrastructure Limited, a midcap company in the cable industry, has seen its share price surged to an intra day high of Rs.167.60 per share, hitting the 5 percent upper circuit from its previous close of Rs.159.65 per share. The shares have retreated since then and currently trading at Rs.167.60 apiece.
The shares were trading at Rs.12.66 per share on 12th December 2023, and currently trading at Rs.167.60 per share, reflecting a 1220 percent increase within a year. If an investor had invested Rs.1 lakh into the company a year ago, that investment would now be worth Rs.12.2 lakh.
What happened
Diamond Power Infrastructures Ltd (DPIL) has announced that its Board of Directors, in a meeting held on December 11, 2024, approved the acquisition of machinery and related equipment from four entities: Syska Mitter Pvt Ltd, Miter & Miter Engineers Pvt Ltd, Emdet Engineers Pvt Ltd, and Miter & Miter.
The total acquisition value is Rs.49.74 crore (excluding taxes), with the asset purchase agreement set to be executed within 90 days. The primary objective of this acquisition is to facilitate DPIL’s entry into the copper wires and cables sector, expanding its current focus on the manufacture and sale of aluminium conductors and cables.
Product Mix
The company specializes in manufacturing transmission and distribution power products, including conductors up to 765 kV, cables up to 550 kV, transformers up to 220 kV, and transmission towers. The company also provides EPC services, with nearly all revenue coming from these power products and services.
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Shareholding Pattern
The promoters of Diamond Power Infrastructure hold the majority 90 percent stake in the company, while FII (Foreign Institutional Investors) and Retail investors own 0.08 percent and 9.92 percent shares respectively.
Financial Performance
In its recent financial update for the quarter ending September 2024, Vedanta Ltd reported revenue from operations of Rs.37,634 crore, reflecting a 3.3 percent decline from Rs.38,945 crore in Q2 FY24. Moreover, net profits increased significantly to Rs.5,603 crore from net loss of Rs.915 crore in the same period.
Company Profile
Diamond Power Infrastructure Limited operates in the Transmission and Distribution (T&D) sector, designing and manufacturing power transmission equipment, including conductors, power cables (HV, LV, and UHV), and transmission towers.
Written by – Siddesh S Raskar
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