One of the micro-cap transformer stocks engaged in the manufacturing of power and distribution transformers has surged by 2.39 percent. The company recently secured two significant orders from Tamil Nadu Generation and Distribution Corporation (TANGEDCO), valued at Rs. 20.07 crore.
Stock Price Movement
In Friday’s trading session, Supreme Power Equipment Limited’s share jumped to an intraday high of 2.39 percent from the previous close of Rs. 240.75. The stock opened at Rs. 241 and is currently trading at Rs. 241.75 with a high of Rs. 246.50 and a low of Rs. 230.50. The market capitalization now stands at approximately Rs. 602.29 crore.
What Happened
Supreme Power Equipment Limited has received two significant orders from Tamil Nadu Generation and Distribution Corporation (TANGEDCO). The first order, worth Rs. 12.81 crore, is for manufacturing and supplying power transformers.
The second order is valued at Rs. 7.26 crores and is through Danya Electric Company, a partnership firm with a 90% shareholding by the company. Both orders are domestic and will be executed within 18 months.
Future Outlook
Supreme Power Equipment Limited anticipates strong growth in the second half of FY25, supported by a solid order book and increasing demand. The company plans to expand its operations to other states to enhance its market presence while ensuring competitive margins amidst industry expansion and rising competition.
Key Achievements
The company secured a significant Rs. 26 crore order, bringing its total order book to Rs. 62 crore and marking its debut in switchyard construction. It also earned a Rs. 3.4 crore contract for transformer refurbishment from Seshasayee Paper, reflecting its growing capabilities in the sector.
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New Developments
Supreme Power Equipment Limited is constructing a new 6-acre facility, expected to become operational by December 2025. This facility will increase production capacity to 9,000 MVA annually. With an investment of Rs. 70-75 crores, it is projected to generate Rs. 500-550 crores in revenue at full capacity. Construction is currently 20%-30% complete, with all necessary approvals secured.
Recent Quarter Results and Ratios
Supreme Power Equipment Limited (SPEL) reported a 14.58% increase in revenue, rising from Rs. 48 crore in H1 FY24 to Rs. 55 crore in H1 FY25. The net profit also grew by 16.67%, increasing from Rs. 6 crore in H1 FY24 to Rs. 7 crore in H1 FY25.
Over the last three years, the company’s revenue and net profit have grown at a CAGR of 45.13% and 141.01%, respectively.
The company has impressive return ratios, with an ROCE of 37.2% and an ROE of 30.4%. Its debt-to-equity ratio is 0.03x, indicating it is nearly debt-free. Supreme Power Equipment Limited’s EPS stands at Rs. 5.87.
Company Overview
Supreme Power Equipment Limited (SPEL) was incorporated in 1994 and specializes in the manufacturing and upgrading of transformers, including power transformers, generator transformers, and windmill transformers.
Written By – Nikhil Naik
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