One of the micro-cap transformers stocks engaged in manufacturing of power and distribution transformers has jumped 2.27 percent after securing an order from TRANTRANSCO worth Rs. 4 crore
Stock Price Movement
In Thursday’s trading session, Supreme Power Equipment Limited’s share jumped to an intraday high of 2.27 percent from the previous close of Rs. 242. The stock opened at Rs. 244 and is currently trading at Rs. 242.50 with a high of Rs. 247.50 and a low of Rs. 242. The market capitalization now stands at approximately Rs. 606.04 crore.
What Happened
Supreme Power Equipment Limited (SPEL) has secured a Rs. 3.63 crore order from TRANTRANSCO for manufacturing, supplying, and erecting power transformers.
This three-month project highlights SPEL’s commitment to delivering top-tier energy solutions and bolsters its position in India’s growing power infrastructure sector. The order aligns with SPEL’s strategic goal to expand market presence and enhance product offerings, paving the way for sustained growth in the power industry.
Future Outlook
Supreme Power Equipment Limited is optimistic about strong growth in H2 FY ’25, driven by a robust order book and rising demand. The company is exploring expansion opportunities into other states to strengthen its market presence while focusing on maintaining margins amid growing competition and industry capacity expansions.
Key Achievements
Supreme Power Equipment Limited secured a Rs. 26 crore order, raising its order book to Rs. 62 crore and marking its entry into switchyard construction. Additionally, it won a Rs. 3.4 crore transformer refurbishment contract from Seshasayee Paper, showcasing its growing expertise.
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New Developments
Supreme Power Equipment Limited is developing a new 6-acre facility, set to be operational by December 2025. The facility will boost production capacity to 9,000 MVA per year. With an investment of Rs. 70-75 crores, it is expected to generate Rs. 500-550 crores in revenue at full capacity. Construction is progressing at 20%-30%, with all necessary approvals in place.
Recent quarter results and ratios
Supreme Power Equipment Limited’s revenue has increased from Rs. 48 crore in H1 FY24 to Rs. 55 crore in H1 FY25, which has grown by 14.58 percent. The net profit of Supreme Power Equipment Limited has also grown by 16.67 percent, from Rs. 6 crore in H1 FY24 to Rs. 7 crore in H1 FY25.
Supreme Power Equipment Limited’s revenue and net profit have grown at a CAGR of 45.13 percent and 141.01 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 37.2 percent and 30.4 percent, respectively. The debt-to-equity ratio of the company is to be 0.03x, which shows the company is almost debt-free. Supreme Power Equipment Limited’s EPS is to be Rs. 5.87.
Company Overview
Supreme Power Equipment Limited (SPEL) was incorporated in 1994 and specializes in manufacturing and upgrading various types of transformers, including power transformers, generator transformers, and windmill transformers.
Written By – Nikhil Naik
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