Shares of Shilchar Technologies hit a new high of Rs 671.25 after zooming 20% on BSE during Wednesday’s intraday trading amid heavy volumes in an otherwise weak market. The electrical equipment company’s stock has soared 62% in the past three trading days from a level of Rs 414.35 hit on April 28, 2022 after posting a strong set of figures for the quarter ended. in March 2022 (Q4FY22).
As of 11:56 a.m., Shilchar Technologies was up 19% at Rs 668 on the BSE, compared to a 0.74% drop on the S&P BSE Sensex. Over-the-counter trading volumes were up 10x with 113,000 shares changing hands over the counter today, compared to an average of 11,000 shares that have been traded over the past two weeks on BSE. Since April 1, the stock has climbed 91%.
Currently, the stock is classified as Category X on BSE. Group X includes all stocks that are only listed on BSE. The company has a low equity base of 3.81 million shares. The promoters held 65.85% of the capital, according to data on the shareholding model.
For the January to March quarter (Q4FY22), Shilchar Technologies reported net profit of Rs 7.48 crore compared to Rs 15.80 lakh in the same quarter last fiscal year (Q4FY21). Operating revenue nearly doubled – up 98% year on year (YoY) – to Rs 65.83 crore from Rs 33.28 crore in the prior year quarter.
For the full financial year 2021-22 (FY22), the company recorded a net profit of Rs 14.04 crore compared to Rs 5.52 crore in FY21. Operating revenue jumped 52% year-on-year to Rs 180 crore from Rs 118 crore. The board recommended a dividend of Rs 4 per share for FY22. It had paid a dividend of Rs 1.5 per share in FY21.
Shilchar Technologies is engaged in the manufacture of distribution transformers ranging from 5 KVA to 3,000 KVA and power transformers ranging from 3,000 KVA to 50,000 KVA. The company also manufactures solar and wind transformers for the renewable energy sector.
The company has focused on catering needs of the renewable energy sector including solar and wind power in the local market, where the company enjoys a commendable position as one of the leading companies in India supplying transformers for renewable energies.
“The Indian power and distribution transformer market is expected to grow at a CAGR of over 6.89% over the next six years, driven by growing demand for electricity driven by rapid increase in population, industrialization and urbanization India being the 5th largest power producer in the world by installed capacity calls for an increase in the market for power and distribution transformers,” the company had said. in its FY21 annual report.
Government programs such as DeendayalUpadhyaya Gram JyotiYojana (DDUGJY) for strengthening and improving sub-transmission distribution infrastructure in rural areas imply increased demand for distribution transformers in the future. In addition, the Integrated Power Development Program (IPDS) to meet the electricity demand of urban areas is adding to the demand for transformers, the company said.