Shares of TD Power Systems soar over 8% to a 52-week high!

Indian headline indices were displaying strong optimism by maintaining their robust ascent in the face of improved economic conditions and significant FII inflows. The strength was noticeable across the majority of sectors, with information technology stocks leading the way. 

The BSE Power and BSE Utilities sectors were trading lower, owing to substantial losses in Adani Group stocks in both sectors. Shares of TD Power Systems, a heavy electrical equipment company, on the other hand, experienced significant buying interest. 

On an intraday basis on Friday, shares of TD Power Systems Ltd soared more than 8%, reaching a 52-week high of Rs 244.50 per share on the BSE. One of the key drivers of the rally is news that the business’s promoters and shareholders intend to offload a 24% stake in the company via a block deal. Shares of the company have climbed more than 90% year-to-date while providing outstanding returns of around 160% over the last year! 

Considering the company’s quarterly financial performance, it recorded a notable growth of 9.98% from Rs 227.17 crore registered in Q4FY22, recording total revenue of Rs 249.85 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter the previous year, it jumped by 43.34% from Rs 24.66 crore to Rs 35.35 crore.   

Incorporated in 1999, TD Power Systems Ltd is one of the leaders in the production of AC generators worldwide, manufacturing units with outputs ranging from 1 MW to 200 MW for prime movers including steam turbines, gas turbines, hydro turbines, wind turbines and diesel engines. The company has a healthy and diversified order book, with orders from railways accounting for a sizeable portion. 

From 2021 to 2025, the industry’s growth rate is expected to accelerate at a CAGR of 9%, with the electrical equipment market in India projected to grow by USD 33.74 billion to USD 70 billion. 

Keep a close eye on this stock for the upcoming sessions! 

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.