Multibagger Shilchar Technologies soars 11550% in 4 years, 577% in last 1 year; should you buy?

Multiagger banal Shilchar Technologies has emerged arsenic a apical performer for semipermanent investors, demonstrating phenomenal returns. Over the past 4 years, its banal terms has skyrocketed by an astounding 11550 percent, surging from ₹53.28 successful June 2020 to astir ₹6,207 presently. This exceptional maturation underscores Shilchar's accordant worth appreciation, positioning it prominently successful the penny banal conception and solidifying its estimation arsenic a lucrative concern opportunity.

Moreover, successful the past 3 years alone, the banal has surged impressively by 6168 percent, climbing from ₹99 successful June 2021.

Recent performances person further underscored Shilchar's stellar way record, with gains of 577 percent implicit the past twelvemonth and a singular 145 percent year-to-date successful 2024.

The banal has shown a beardown show this year, with gains successful 5 retired of the 7 months. July unsocial saw a robust summation of implicit 12 percent successful conscionable 4 trading sessions, pursuing a 9.5 percent emergence successful June. However, it faced a setback successful May with a diminution of astir 22 percent. Prior to that, April marked a important rally of 68 percent aft a flimsy dip of 3.2 percent successful March. The affirmative inclination began earlier successful the year, with gains of 17.5 percent successful February and 33.5 percent successful January.

The banal is presently conscionable 5.5 percent distant from its grounds precocious of ₹6,769.50, deed connected April 24, 2024. Meanwhile, it has soared 614 percent from its 52-week debased of ₹895.

Shilchar Technologies Limited engages successful the manufacture and merchantability of transformers and parts successful India. It provides powerfulness and organisation transformers, and electronics and telecommunication transformers for star and upwind energy. The institution besides exports its products. Shilchar Technologies Limited was formerly known arsenic Shilchar Electronics Limited. The institution was incorporated successful 1986 and is based successful Vadodara, India.

Brokerage location Anand Rathi precocious visited Shilchar Technologies’ Vadodara works and engaged with its management. A specialised firm, Shilchar focuses connected supplying transformers, including inverter work transformers (IDT) and organisation transformers, chiefly for the star and upwind sectors successful renewable energy. While susceptible of manufacturing transformers up to 132kV, the bulk of its accumulation remains focused connected 66kV and lower, noted the brokerage.

Approximately 50 percent of its gross comes from exports, with an mean realisation of astir ₹1 cardinal per MVA. The institution is expanding its capableness by 3,500 MVA from its existent 4,000 MVA to conscionable increasing request successful some home and planetary renewable vigor markets. Anand Rathi believes Shilchar Technologies is well-positioned to payment from the ongoing superior expenditure successful the renewables sector.

The brokerage noted that from FY21 to FY24, Shilchar Technologies achieved a robust 50 percent compound yearly maturation complaint (CAGR) successful revenue, with the EBITDA borderline expanding importantly from 8.1 percent to 28.5 percent. Adjusted nett aft taxation (PAT) besides grew astatine a compound yearly maturation complaint of 155 percent.

Currently, the banal is trading astatine 33 times the FY24 net per stock (EPS) of ₹120. Looking guardant to FY26, the institution antecedently guided gross expectations successful the scope of ₹800 crore to ₹900 crore, portion aiming to support its full-year borderline of astir 28 percent.

However, risks identified by the brokerage see intensified contention from peers perchance entering the inverter work transformer (IDT) manufacturing segment, and accrued competitory pressures successful the export marketplace that could interaction margins.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.