The stock of this electrical equipment company has zoomed 62% in 3 days

Shilchar Technologies hit a new high of Rs 671.25, zooming 20 per cent on the BSE in Wednesday's intra-day trade amid heavy volumes

Shares of Shilchar Technologies hit a new high of Rs 671.25 after they zoomed 20 per cent on the BSE in Wednesday's intra-day trade amid heavy volumes in an otherwise a weak market. The stock of the electrical equipment company has soared 62 per cent in the past three trading days from a level of Rs 414.35 hit on April 28, 2022 after it reported a strong set of numbers for the quarter ended March 2022 (Q4FY22).

At 11:56 AM, Shilchar Technologies was 19 per cent higher at Rs 668 on the BSE, as compared to 0.74 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped over 10-fold with 113,000 equity shares changing hands on the counter today as against an average 11,000 shares that were traded in the past two weeks on the BSE. Since April 1, the stock has zoomed 91 per cent.

Currently, the stock is classified in the X category on the BSE. X group consists of all those stocks which are only listed on BSE. The company has low equity base of 3.81 million shares. The promoters held 65.85 per cent stake, shareholding pattern data shows.

For January-March quarter (Q4FY22), Shilchar Technologies reported net profit of Rs 7.48 crore against Rs 15.80 lakh in the same quarter of last fiscal (Q4FY21). Revenue from operations nearly doubled -- up 98 per cent year on year (YoY) -- to Rs 65.83 crore from Rs 33.28 crore in the year ago quarter.

For the entire financial year 2021-22 (FY22), the company posted net profit of Rs 14.04 crore as against Rs 5.52 crore in FY21. Revenue from operations jumped 52 per cent YoY at Rs 180 crore from Rs 118 crore. The board has recommended dividend of Rs 4 per equity share for FY22. It had paid dividend of Rs 1.5 per equity share in FY21.

Shilchar Technologies is engaged in manufacturing of distribution transformers ranging from 5 KVA to 3000 KVA and power transformers ranging from 3000 KVA to 50,000 KVA. The company also manufactures solar and windmill transformers for renewable energy sector.

The company has concentrated on catering needs of renewable energy sector including solar and wind energy in local market wherein the company has been enjoying commendable position being one of the top companies in India supplying transformers for renewable energy.

"The Indian power & distribution transformers market is anticipated to grow at a CAGR of over 6.89 per cent in the next six years, owing to the growing demand for power due to rapid increase in population, industrialization, and urbanization. India being the 5th largest power producer in the world, in terms of installed capacity, is calling for an increase in the market of power & distribution transformer market," the company had said in FY21 annual report.

Government schemes like DeendayalUpadhyaya Gram JyotiYojana (DDUGJY) for strengthening and enhancement of sub-transmission distribution infrastructure in rural areas, involve an increased demand for distribution transformers in the future. Also, the Integrated Power Development Scheme (IPDS) for fulfilling the power demand of urban areas add to the demand for the transformers, the company said.