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Mumbai: Indian stock markets witnessed a historic, record rally last week with strong hopes of a stable, strong government at the Centre again ahead of the final phase of Lok Sabha election voting. Last weekend saw continued stock buying by domestic institutional investors, mutual funds, foreign portfolio investors on Thursday jumped over 1,200 points and the Nifty jumped over 400 points to make new all-time highs. Corporate India's quarterly and annual results till the end of March 2024 have been encouraging overall, with institutional investors as well as retail and high net worth investors sentiment rising in anticipation of the election results. Now with the final two phases of voting, exit polls as well as various speculations and reports will be seen flowing once the election ends next Saturday.
So next week may see a big index-based reversal and once again players, traders may be seen playing deceptive games to mislead. Therefore, it will be imperative to stay away from any overbought or oversold positions and stay tuned till Saturday's exit polls and the election results on June 4. The uncertainty of whether the election results will be more than 400 or fewer seats than expected is likely to be a big factor. Therefore, even if the stock markets see a big surge next week in anticipation of the election results, profit booking will be imperative. Because along with the election results, the market can give a big correction by capitalizing on this factor as well. On the global front, geopolitical factors will also be important, amid reports that the US will not cut interest rates in the coming days due to renewed inflation, softening in global markets over the weekend, as well as Putin's conditional ceasefire offer after new tensions between Russia and Ukraine. Amid these factors, now in the coming week, Sensex can be seen between 76333 and 74444 and Nifty between 23222 and 22666.
Arjun's eyes: Indo Tech Transformers Ltd.
BSE (532717), NSE (Indotech) listed, (Listed in T Group), Rs.10 payout, 75% promoted by Shirdi Sai Electrical Ltd., ISO 9001:2015 Quality Management System, ISO 45001:2018 Health Management System, ISO 14001:2015 Environmental Management System, NABL (National Board for Testing and Calibration Laboratories) certified, Indo Tech Transformers Ltd., established in the year 1976, is one of the leading transformer manufacturing companies based in South India. The company has manufacturing facilities at Kancheepuram in Tamil Nadu and Tirumazhisai, Chennai. The company has more than 56,000 transformers of various ratings of capacity up to 245 kV used in various substations and industries in India and abroad. The company is active in power, distribution, inverter, converter special application transformer manufacturing business. Which caters to various industries like transmission, generation, hydro, wind, solar, steel, cement, textiles, utilities, discoms etc. With state-of-the-art facilities for manufacturing and testing, the company's Extra High Voltage (EHV) transformer facility is completely dust free.
The company's various transformer segments…
Distribution Transformers: In distribution transformers the company manufactures transformers ranging from 100kVA/11kV to 5000kva/33kV for utilities and industries for residential, commercial and industrial applications. The company manufactures these transformers at its Kancheepuram plant with an installed capacity of 1000 MVA per annum.
Power Transformers: The company manufactures medium size power transformers and auto transformers ranging from 5 MVA/33 kV to 31.5 kVA/132 kV capacity including two winding and three winding at its Kancheepuram facility.
Large Power Transformers: The company manufactures large power transformer substations, generator step up/down, two winding, three winding and auto transformers in the range of 5 MVA/11 kV to 200 MVA/230 kV with an installed capacity of 9000 MVA at Kanchipuram.
Skid Mounted Substations: The company has developed five skid mounted substations for windmills with capacities ranging from 11MVA to 33KVA(HV) which integrates transformers with breakers and panels along with HV side protection gear.
Major Clients: The major clients of the company include TNEB, NTPC, L&T, ABB, Siemens, NLC, Vestas, DVC, Gamesha, BGR, Suzlon, Tata Projects, KEC International, Reliance, Walchand, Doosan etc, leading hotels, hospitals, factories of steel and cement etc. Along with this the transformers of the company are in service in many ferrous and non-ferrous industries across the country. Some of the clients include JSW Steel, Jindal Steel & Power, BALCO, Jaiswal Nico. While other industrial clients include leading electrical consultants like MN Dastur & Co, EIL, MECON, Fisher, PGCIL, Avant Garde, TCE etc. When
Book Value: Rs 194 in March 2021, Rs 264 in March 2022, Rs 349 in March 2023, Rs 393 in March 2024, Rs 478 estimated in March 2025
Shareholding pattern: 75% promoter holding of Shirdi Sai Electrical Limited with group revenue of Rs 1413 crore, 75% stake in Indo Tech Transformers Limited was acquired by the group in 2020. Other shareholding in the company includes HNIs and Institutions holding 8.52 per cent stake and the remaining 16.48 per cent retail stake.
financial result:
(1) Full year April 2022 to March 2023: Earning a net income of Rs 374 crore, NPM reported a net profit up 6.88% to Rs 25.70 crore and earnings per share of Rs 24.27.
(2) Fourth Quarter January 2024 to March 2024: Net Income increased by 22.14% from Rs 145.40 crore to Rs 177.60 crore, NPM increased by 14.40% from Rs 19.30 crore to Rs 32.48 crore, Quarterly Earnings at Rs 25.57 crore, Earnings per Share increased by 24.08%.
(3) Full year April 2023 to March 2024: Net Income increased by 36.49 per cent to Rs 509.92 crore from Rs 373.57 crore, NPM increased by 9.19 per cent and Net Profit increased from Rs 25.70 crore to Rs 82.33 crore, Earnings per share increased to Rs 46.86 crore from Rs 24.20 crore to Rs 44.12.
(4) Expected Full Year April 2024 to March 2025: Expected net income of Rs 700 crore, net profit of Rs 91 crore at NPM of 13 per cent and earnings per share of Rs 85.68.
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in the research sources. Consult a qualified investment financial advisor before making any investment decision. The author, Gujarat News or any other person will not be responsible for any potential loss on investment. (2) Promoter Shirdi Sai Electrical Limited holds 75 percent stake (3) One of the leading transformer manufacturing companies based in South India, supplying to several industries in the country and abroad (4) Net profit for the full financial year 2023-24 grew 82.33 percent to Rs 46 crore to achieve Earnings-EPS of Rs 44.12 per share (5) Full year 2024-25 expected Earnings-EPS of Rs 85.68 and expected book value of Rs 478. 10 paid-up shares as on May 24, 2024 at Rs 1604.20 on NSE and Rs 1597.60 on BSE (in T group), listed Transformer is trading at a P/E of 18.68 against the industry average P/E of 48.
