This microcap power company, which is engaged in manufacturing, renovating, and upgrading various types of transformers is in focus after receiving an order from Multiple organizations totaling worth Rs. 4.62 crores.
Price Movement
In Monday’s trading session, Supreme Power Equipment Limited stock was trading at Rs.214.75 per share, which is 3.31 percent down from its previous close price of Rs.222.10. The stock has delivered a return of around 122 percent and outperformed nifty in the same period.
What happened
The company has received multiple orders recently for manufacturing and supply of transformers. The Tea estate organization in Munnar, Kerala has awarded an order worth Rs. 2.72 crore involving the supply of two 20 MVA, 33/11 KV power transmissions, Rs. 0.58 crore order from the Department of Electricity in Lakshadweep and a Rs. 1.32 crore order from other domestic entities. The order totals Rs. 4.62 crores and the timing for execution is within 6 months.
Financial Performance
Their recent FY24 results show revenue from operations increased by 13.73 percent year on year, from Rs. 100 crores in FY23 to Rs. 113 crores in FY24. Their net profit increased by 29.39 percent year on year, from Rs. 10.82 crores in FY23 to Rs. 14 crores in FY24.
The return on equity in FY24 stood at 30.45 percent down from 85.53 percent a year ago. The debt to equity ratio was 0.15 times which has reduced significantly from 0.7 times in FY23. However, the return on capital employed has stood at 37.14 percent which has reduced compared to 70.61 percent in FY23.
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Revenue Segment
According to the company’s annual report, they considered revenue from a single source. They derive their revenue from the manufacturing and selling of transformers of all varieties of electrical transmission equipment as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 56.56 percent stake in Supreme Power Equipment. Foreign Institutional Investors (FIIs) hold 0.06 percent, Domestic Individual Investors hold around 9.49 percent, and public holdings stand at 33.89 percent.
About the company
Supreme Power Equipment Limited operates as a manufacturer of various transformers, including power, distribution, and renewable energy transformers. They focus on upgrading and renovating transformer technology to meet industry demands. Supreme’s order book stood at around Rs. 62 crores at the end of H1FY25.
The business started as a partnership firm in 1994, it converted into a company in 2005. The company focusing on demand from renewable energy space has also aligned with the business. As transformers have long spans the constant upgradation and installation, the company can leverage the opportunity to provide both new and refurbished transformers.
Written by Santhosh S
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