Power stock turns ₹10,000 to ₹2.92 lakhs in just 5 years
Power Stock – During Friday’s trading session, the shares of T D Power Systems Limited closed 0.25 percent lower at Rs. 450.10 on the Bombay Stock Exchange (BSE). The company’s market capitalization stands at Rs. 7,029.82 crores. The stock reached a day’s high of Rs. 451.25 per share but closed lower than its previous closing price of Rs. 451.25.
Stock Performance:
Over the past five years, the stock has delivered impressive returns of approximately 2,824 percent, rising from Rs. 15.40 on March 27, 2020, to the current level of Rs. 450.35. This means that an investment of Rs. 10,000 in the stock five years ago would now be worth nearly Rs. 2.92 lakhs.
In the last six months, the stock has provided returns of about 10.22 percent, with a one-year return of around 58.94 percent. However, in 2024, the shares of T D Power Systems have seen a negative return of 0.80 percent, underperforming the Nifty Index during the same period.
Financials:
For the second quarter of FY25, T D Power Systems reported revenue from operations of Rs. 306 crores, up from Rs. 274 crores in Q2FY24, marking an 11.67 percent year-on-year increase. Quarter-on-quarter, the revenue growth was also 11.67 percent from Rs. 274 crores in Q1FY25.
The company’s profit after tax (PAT) for Q2 FY25 increased to Rs. 41 crores, a significant rise of approximately 24.24 percent from Rs. 33 crores in Q2FY24. On a quarter-on-quarter basis, there was a 17.14 percent increase from Rs. 35 crores in Q1 FY25.
Business Outlook and Plans:
TD Power Systems is positioned for substantial growth in the upcoming years, driven by strong order inflows and strategic expansions. The company has achieved record order bookings, with expectations to surpass previous figures in the next quarter. This has led to a revised top-line guidance for FY25 of Rs. 1,250 to 1,275 crores, representing a growth of 25% to 27.5% compared to the previous year. The company’s focus on international markets, particularly in gas turbines and engines, has intensified, with exports accounting for a significant portion of their order book.
Furthermore, TD Power is enhancing its manufacturing capabilities with the introduction of new plants, which will enhance production capacity and operational efficiency. The management foresees strong demand from sectors such as steel and cement, while also exploring opportunities in geothermal energy and traction motors.
Shareholding Pattern:
As of the September 2024 shareholding pattern, the majority stake in the company was held by promoters at 34.27%. Foreign Institutional Investors (FII) held 16.24%, while Domestic Institutional Investors (DII) held approximately 29.64%. The public held the remaining 19.85% in TD Power Systems Limited.
About the Company:
TD Power Systems Limited was founded in 1999 and has since become a global leader in the manufacturing and distribution of AC generators and electric motors. The company operates through two main segments: Manufacturing and Project Business. Their diverse product range includes steam and hydro turbines, diesel and gas engines, and electric traction motors.
TD Power Systems is dedicated to providing top-notch engineering, procurement, and construction services, catering to industries such as thermal, hydroelectric, and renewable energy. With a strong international presence, the company has successfully delivered over 6,300 machines to 105 countries, emphasizing quality and innovation in all aspects of its operations.
As of September 30, 2024, the company’s order book totaled Rs. 1,234.40 crore, encompassing domestic sales, exports (including deemed exports), railways, spares and aftermarket, and turnkey projects.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.