Heavy buying and Rs 700 crore order book: Back-to-back upper circuit in this multibagger transformer stock; gains over 400 per cent!

Shares of the company gained more than 150 per cent in the last six months.

Shares of Indo Tech Transformers Limited were locked in the upper circuit on Thursday, gaining 5.00 per cent. The stock has witnessed heavy buying activity from investors in the last few days. Hence, the stock is locked in the upper circuit. The stock has gained more than 150 per cent in the last six months.

In the recent quarter, Q4FY24, the net sales of the company increased by 21.04 per cent at Rs 175.11 crore for Q4FY24 as compared to Rs 144.67 crore for the corresponding quarter previous year. The company reported a 32.49 per cent increase in its net profit at Rs 25.57 crore for the quarter ended March 31, 2024, as compared to Rs 19.30 crore for the same quarter in the previous year.

Indo Tech Transformers Limited is engaged in the business of manufacturing power and distribution transformers and various special application transformers, mobile substation transformers and substations. The company has a transformer manufacturing facility at Kadapa, Andhra Pradesh. It designs and manufactures power and distribution transformers to cater to the needs of electricity utilities and private enterprises.

The company’s order book stood at Rs. 700 crores as of June 2024, which is 1.4 times the operating income reported in FY2024, providing healthy revenue visibility in FY2025. In the current fiscal, the revenue growth momentum will continue, aided by a strong order book position and enhanced production capacity. The stock has delivered multibagger returns of over 500 per cent in 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.