From Rs 65 to Rs 140: This multibagger smallcap stock is all-charged up; do you own it?

. It has been a proven multibagger stock, having increased shareholders’ wealth by over 400 per cent in the past 3 years!  

Despite the volatile action in the broader market, fundamentally good quality Smallcap stocks have seen strong buying interest from the investors as many hit their fresh 52-week high levels at the start of the New Year. One such stock is TD Power Systems (NSE Code - TDPOWERSYS), which surged over 10 per cent during Tuesday’s trading session amidst increasing buying momentum. It has been a proven multibagger stock, having increased shareholders’ wealth by over 400 per cent in the past 3 years!  

Let us understand what is so special about this company:  

TD Power System is one of the leading manufacturers of AC Generators for various steam turbines, gas turbines, hydro turbines and wind turbines. The company also works in the manufacturing of special application generators for Geothermal and Solar thermal applications ensured by world class manufacturing processes and quality control.   

Analysing the fundamental aspects, the company has been able to post increasing revenue for the past 5 years. In its recent quarterly result, it registered a jump of 24 per cent YoY in quarterly net profit to Rs 19.90 crore in September 2022 from Rs 16 crore in the corresponding quarter of previous financial year. The efficiency ratios improved while debt/equity ratio remained fairly constant.   

Technically speaking, the stock has registered a strong price volume breakout from its falling trendline. The volume happened to be the highest in many days as over 25 lakh shares have been traded on Tuesday and indicates strong buying activity prevailing in the stock. All moving averages are in an uptrend and demonstrate bullishness across all timeframes. The 14-day RSI (69.01) is in super bullish territory and shows strong strength in the stock. In a nutshell, the stock is fundamentally sound and technically strong, making it a good candidate to include in one’s portfolio.   

The shares of TDPOWERSYS have hit fresh 52-week high of Rs 143.65 level on NSE. Long-term investors can keep a close watch over this stock for upcoming trading sessions.