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

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

Shares of Indo Tech Transformers Limited were locked in the upper circuit on Tuesday, 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 130 per cent in the last six months.

In the recent quarter, Q3FY24, the net sales of the company increased by 66.79 per cent at Rs 139.47 crore for Q3FY24 as compared to Rs 83.62 crore for the corresponding quarter previous year. The company reported a 178.13 per cent increase in its net profit at Rs 10.68 crore for the quarter ended December 31, 2023, as compared to Rs 3.84 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 strong order book of as of June 2023 is Rs 436.7 crore, which is 1.2 times its FY2023 operating income. This, along with new orders, is expected to result in healthy revenue growth and improved profitability for the company. 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.