Investors often dream of identifying that one transformative stock that turns small investments into substantial wealth. TD Power Systems Limited, with its stellar five-year performance, has emerged as a shining example, delivering jaw-dropping returns of 2,824%. From ₹15.40 in March 2020 to ₹450.10 today, this power stock has rewarded its investors richly, proving the potential of long-term vision.
Stock Performance: A Remarkable Journey
Five years ago, an investment of ₹10,000 in TD Power Systems could have ballooned to nearly ₹2.92 lakhs, showcasing the company’s resilience and investor confidence. While the stock has seen fluctuations, including a slight 0.25% dip to ₹450.10 during Friday’s session, its overall trajectory remains impressive.
Recent Returns Snapshot:
- Six-month returns: 16.91%
- One-year returns: 68.26%
- 2024 performance: A minor dip of 0.80%, slightly underperforming the Nifty Index.
Financial Performance: A Testament to Growth
TD Power Systems’ Q2 FY25 financials highlight robust growth:
- Revenue: ₹306 crores, up 11.67% YoY.
- Profit After Tax (PAT): ₹41 crores, marking a 24.24% YoY growth.
- Quarterly growth: Revenue and PAT increased by 11.67% and 17.14%, respectively, from Q1 FY25.
This steady growth reflects the company’s strategic execution and ability to navigate market challenges effectively.
Business Outlook: Powering the Future
The company’s roadmap for FY25 signals a bright future. TD Power Systems anticipates a revenue target between ₹1,250 crores and ₹1,275 crores, translating to a robust 25-27.5% growth. Key drivers include:
- Strong Order Book: The company has a record order backlog of ₹1,234.40 crores, spanning domestic and international markets.
- Expansion Plans: New manufacturing plants are set to enhance production capacity and operational efficiency.
- Global Focus: Export markets, especially in gas turbines and traction motors, play a pivotal role in the company’s growth.
- Sectoral Demand: Strong interest from steel, cement, geothermal energy, and railways underscores diversified revenue streams.
Shareholding Pattern: Who Owns the Company?
The September 2024 shareholding data reveals a balanced ownership structure:
- Promoters: 34.27%
- FIIs: 16.24%
- DIIs: 29.64%
- Public Shareholding: 19.85%
This structure highlights a healthy mix of institutional and public trust in the company’s growth story.
About TD Power Systems: A Global Player
Established in 1999, TD Power Systems Limited specializes in manufacturing AC generators and electric motors, catering to a global market. The company operates through two segments: Manufacturing and Project Business, serving industries such as thermal, hydroelectric, and renewable energy. With over 6,300 machines supplied to 105 countries, the company has cemented its reputation for quality and innovation.
Product Portfolio Includes:
- Steam and hydro turbines
- Diesel and gas engines
- Electric traction motors
Why TD Power Systems Stands Out
The company’s commitment to excellence, coupled with strategic expansions and robust financials, positions it as a key player in the power and energy sector. As it continues to innovate and expand its global footprint, TD Power Systems offers a compelling growth story for investors and stakeholders alike.
A Multi-Bagger Worth Watching
With its transformative growth, strong fundamentals, and ambitious plans, TD Power Systems Limited embodies the potential of the power sector. For seasoned investors and newcomers alike, this multi-bagger is a testament to the rewards of strategic investments and the power of patience.