Rs 180 Crore Order Backlog and Rs 450 Crore Orders in Pipeline: Power Company Announces Major CAPEX and Big Expansion Plans!
With a PE ratio of 67.1x, the company trades at a premium compared to the industry PE of 45.6x. The company has ROCE of 31.5 per cent and ROE of 28.1 per cent.
Quality Power Electrical Equipments Limited has announced several strategic decisions following its recent board meeting on 15th March 2025. The board approved the unaudited standalone and consolidated financial results for the quarter ending 31st December 2024, reviewed by M/s. Kishor Gujar & Associates. The company reported a healthy order backlog of approximately Rs 180 crores and a potential order pipeline of Rs 450 crores. In response, the board approved significant CAPEX investments and the expansion of manufacturing facilities in Sangli and Cochin to strengthen its Power Products business. Additionally, the board sanctioned a soft loan of up to Rs 125 crores from Promoter Directors to support these expansions. A new Mergers & Acquisitions Committee has been formed to explore further growth opportunities, and it has been authorized to negotiate the acquisition of a majority stake in STATCON Energiaa Private Limited. These developments underscore the company's proactive approach to capitalising on global opportunities in the HVDC & FACTS sector.
Quality Power Electrical Equipments Limited, established in 2001, specializes in energy transition equipment and power technologies. The company is currently engaged in expanding its manufacturing capabilities to meet growing demand, with plans for new facilities in Sangli and Cochin. As of March 2025, its stock is priced at Rs 330.05, with a market capitalization of approximately Rs 2,556 crores. Despite the lack of specific return data, the company's strategic initiatives and significant order backlog indicate a focus on long-term growth and sectoral leadership.
DSIJ offers a service 'Pop Scalper" with recommendations for scalping profit from index option based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
In the Quarterly Results of Dec-24, revenue stood at Rs 72.59 crore, a decline of 23.03 per cent QoQ from Rs 94.31 crore in Sep-24. Net profit increased by 18.61 per cent QoQ to Rs 13.83 crore from Rs 11.66 crore. The net profit margin improved to 19.05 per cent in Dec-24 from 12.36 per cent in Sep-24.
For the full-year results of FY24, revenue was Rs 300.60 crore, marking an 18.70 per cent growth from Rs 253.25 crore in FY23. Net profit increased by 25.72 per cent to Rs 36.73 crore from Rs 24.39 crore in FY23. The net profit margin stood at 8.11 per cent in FY24, compared to 7.66 per cent in FY23.
As of February 2025, the shareholding pattern stands as follows: Promoters hold 73.91 per cent, Foreign Institutional Investors (FIIs) hold 6.67 per cent, Domestic Institutional Investors (DIIs) hold 13.12 per cent, and the public holds 6.31 per cent.
With a PE ratio of 67.1x, the company trades at a premium compared to the industry PE of 45.6x. The company has ROCE of 31.5 per cent and ROE of 28.1 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.