Supreme Power Equipment Hits 5% Upper Circuit After ₹10 Cr Order for Transformer Parts
Stock Surge on New Work Order
Shares of Supreme Power Equipment Limited hit the 5% upper circuit at ₹137.20 apiece after the company secured a ₹10.18 crore work order from an electric company based in Chennai. The order involves the manufacturing and supply of transformer parts, boosting investor confidence and driving the stock upward.
With a market capitalization of ₹342.88 crore, the stock saw a surge from its previous close of ₹130 per share, reflecting strong market enthusiasm.
Why Is the Stock Rising?
The primary catalyst for Supreme Power Equipment’s stock rally is its latest order win. The ₹10.18 crore contract reinforces the company’s standing as a key player in the power distribution sector, highlighting its robust manufacturing capabilities and industry expertise.
This bullish movement aligns with the company’s growth trajectory, as Supreme Power Equipment continues to expand its presence in the power and transformer manufacturing sector.
Strong Financial Performance Fuels Optimism
Supreme Power Equipment has demonstrated impressive financial performance, which further supports investor sentiment:
- Revenue Growth: Increased by 27% from ₹21.63 crore in Q3FY24 to ₹27.52 crore in Q3FY25.
- Net Profit Growth: Rose by 9%, from ₹2.92 crore to ₹3.17 crore during the same period.
- Healthy Profit Margins: The company maintains a net profit margin of 13.1%, showcasing operational efficiency.
The strong financial performance underscores Supreme Power Equipment’s ability to secure high-value contracts, expand revenue, and sustain profitability.
Manufacturing Capability & Industry Reach
Supreme Power Equipment has a diverse portfolio in the transformer industry, serving multiple sectors, including public power utilities, wind energy, and solar energy projects.
The company has delivered transformers for Gamesa Spain, a leading global corporation, specifically for solar energy projects in India. The transformers it manufactures range in voltage from 16KVA to 25MVA/110KV and power capacities from 1250KVA/22KV to 6000KVA/33KV.
Its production facility, spanning 17,876 square meters in Chennai, leverages modern machinery and technology, enabling cost-effective transformer manufacturing.
Financial Ratios & Key Metrics
| Metric | Value |
|---|---|
| Market Capitalization | ₹338 Cr. |
| Current Price | ₹135 |
| 52-Week High/Low | ₹420 / 101 |
| Stock P/E | – |
| Book Value | ₹29.6 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 37.2% |
| Return on Equity (ROE) | 30.4% |
| Debt to Equity Ratio | 0.08 |
| Industry PE | 49.6 |
| Total Debt | ₹5.91 Cr. |
| ROIC | 33.6% |
| Piotroski Score | 3.00 |
| Price to Book Value | 4.57 |
| No. of Equity Shares | 2.50 Cr. |
These key financial ratios reflect Supreme Power Equipment’s strong return on capital and low debt levels, indicating a healthy financial position.
Supreme Power Equipment’s Growing Market Presence
Established as a leader in transformer manufacturing, upgradation, and renovation, Supreme Power Equipment Limited specializes in a wide range of transformer types, including:
- Power Transformers
- Generator Transformers
- Windmill Transformers
- Distribution Transformers
- Isolation Transformers
- Solar Transformers
- Energy-Efficient Transformers
- Converter and Rectifier Transformers
The company continues to strengthen its foothold in renewable energy and power distribution, making it a key player in the sector.
Final Thoughts
Supreme Power Equipment’s latest contract win has reinforced investor confidence, sending its stock to the 5% upper circuit. With strong revenue growth, robust financials, and an expanding market presence, the company is well-positioned for future success.
Given its low debt, high ROE and ROCE, and diverse client base, Supreme Power Equipment remains a strong contender in the power distribution industry, with potential for further upside.
For investors, the stock’s recent surge highlights growth potential in the power and transformer sector. However, keeping an eye on future orders and broader market trends will be crucial for sustained long-term gains.
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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.