The power distribution company’s shares hit a 5 percent upper circuit of Rs 230.50 apiece after the company bagged a new work order of Rs 26 crore from Solar Energy Company.
With a market capitalization of Rs 576.05 crore, Supreme Power Equipment Limited’s shares were trading at Rs 230.50 per share, increasing around 5 percent compared to the previous closing price of Rs 219.55 apiece.
Is Supreme Power Equipment a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
Reason for rise:-
Today, the company’s shares have seen bullish movement after Supreme Power Equipment Limited bagged a new work order of Rs 26 crore from Solar Energy Company for the manufacturing and supply of transformers which includes 110 KV switch yard construction, installation & commissioning, and others. The duration of this order is 5 months.
Financial performance:-
The company’s revenue soared 62%, rising from Rs 47 crore in FY22-23 to Rs 76 crore in FY23-24 while net profit zoomed by 1300%, growing from Rs 1 crore to Rs 14 crore during the same period, reflecting strong financial performance and continued business growth.
Remarkable Return:-
The stock has given a multi-bagger return of 200 percent in just six months and a 135.20 percent return in a year, A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 2.35 lakh in ten months.
Capability & Manufacturing facility:-
The firm has provided transformers for a variety of industries, including the local public power utility and the windmill industry. The firm has also delivered transformers to Gamesa Spain, a global corporation, for solar energy projects in India. These transformers have a voltage range of 16KVA to 25MVA/110KV and power ranges from 1250KVA/22KV to 6000 KVA/33KV.
The company’s production facility spans 17,876 square meters at Thirumazhisai, Thiruvallur, Chennai. Transformer manufacturing expenses are reduced due to the use of contemporary machinery and technology in the production facilities.
Ratio analysis & shareholding pattern:-
In terms of major financial measures, the firm recorded a return on equity (RoE) of 30.4 percent and a return on capital employed (RoCE) of 37.2 percent for the fiscal year 23-24. Furthermore, the net profit margin was 13.1 percent throughout the same time.
According to the most recent shareholding pattern, the Promoters control 56.56 percent of the shares, while Foreign Institutional Investors own 3.87 percent. Retail investors hold the remaining 30.02 percent of the shares.
Company profile:-
Supreme Power Equipment Limited manufactures, upgrades, and renovates various types of transformers, including power transformers, generator transformers, windmill transformers, distribution transformers, isolation transformers, solar transformers, energy-efficient transformers, converters, and rectifier transformers.
Written by:- Abhishek Singh
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