Heavy buying: Back-to-back upper circuit in this multibagger penny stock; gains over 500 per cent in a year!

Heavy buying: Back-to-back upper circuit in this multibagger penny stock; gains over 500 per cent in a year!

Praveenkumar Yadav

Shares of the company have gained more than 130 per cent in the last six months.

Shares of Alfa Transformers Limited were locked in the upper circuit on Wednesday, gaining 5.00 per cent. The stock witnessed heavy buying activity from investors. Hence, the stock was locked in the upper circuit on Wednesday. The stock also made a new 52-week high today. In the last six months, the stock has gained more than 130 per cent.

The company posted strong Quarterly Results. The revenue of the company for Q2FY24 stood at Rs 13.87 crore which grew by 122.17 per cent YoY. The operating profit of the company stood at Rs 0.94 crore, while the PAT of the company stood at Rs 6.06 crore, representing a growth of 2034.15 per cent YoY.

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Recently, the company secured new orders totaling a whopping Rs 7.4 crore. The bulk comes from two orders by Tata Power's subsidiary for transformers in their Vadodara and Bhubaneswar plants, amounting to Rs 3.59 crore. Rungta Sons and OCL Iron & Steel chipped in with Rs 3.28 crore worth of orders, while Larsen & Toubro rounded out the haul with a Rs 53 lakh order.

These contracts involve the design, manufacturing, and supply of transformers, with completion for most by February 2024 and L&T's order to be finished within 3 months. This windfall signifies strong trust in Alfa's expertise and positions them for further growth in the transformer market.

Alfa Transformers Limited manufactures small distribution transformers and offers related technical assistance and services, including repair work. The company has two manufacturing units located in Bhubaneswar and Vadodara. The stock also delivered multibagger returns of about 590 per cent in the last one year.

The stock has shown tremendous growth and investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.

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