1. 🌟 At a Glance

Akanksha Power, a relatively unknown SME player in the electrical infra space, is trying to punch above its ₹200 Cr market cap. It makes transformers, vacuum contactors, and switchboards. But behind the dry product line lies a wild cocktail of AI green data centers, Schneider Electric contracts, and renewable forays. Is this a slow-charging multibagger or a high-voltage circuit breaker?

2. ✨ Introduction with Hook

Picture this:
An SME stock that builds switchgear for substations, signs AI solar data center deals in Nigeria, and casually partners with Schneider Electric?

Is it a power infra company or a LinkedIn influencer?

Akanksha Power went from ₹183 to ₹99 in under a year, but its order wins and expansion into smart metering + renewables could spark a turnaround.

3. 🔬 Business Model (WTF Do They Even Do?)

• Core manufacturing:
  • Electrical panels: MCC, PCC, VFD panels
  • Transformers: CT, PT, RVT
  • Vacuum Contactors: For capacitor switching
• Clients: Utilities (MSEDCL), OEMs, private infra firms, smart grid projects
• Geographies: India + recent Africa push (Nigeria, AI Data Center)
• Revenue Mix (FY23): 54% from electrical panels
• Service Add-ons: Power quality solutions (PQS), SCADA-ready setups

4. 📈 Financials Overview — Profit, Margins, ROE, Growth

• FY25 Revenue: ₹77.7 Cr (up from ₹53.2 Cr in FY24)
• Net Profit: ₹4.29 Cr (vs. ₹2.66 Cr)
• EBITDA: ₹8.09 Cr | EBITDA Margin: 10.4%
• ROCE: 11.4% | ROE: 7.78%
• EPS: ₹2.19
• 5Y Profit CAGR: 38% | Sales CAGR: 30%

Margins are holding steady, growth is strong, but ROEs are modest.

5. 💲 Valuation — Is It Cheap, Meh, or Crack?

• CMP: ₹99.2 | P/E: 45x
• Market Cap: ₹194 Cr
• Book Value: ₹33.7 | P/B: 2.94x
• EV/EBITDA: ~23.5x (steep for electricals)

Fair Value Range:

• Base case: 25x EPS of ₹2.19 = ₹54
• Bull case: 40x EPS = ₹88
• FV Range: ₹54 – ₹88

Stock is expensive right now. Needs earnings to double for rerating.

6. 🌟 What’s Cooking — News, Triggers, Drama

• June 2025: Secures long-term ₹12 Cr/year Schneider Electric contract
• April 2025: Gets ₹21.6 Cr RDSS order for PQS from Maharashtra discom
• Nigeria angle: AI-enabled solar data center and 5MW green infra via JV
• Jan 2025: Acquires 52% in Famous Power Ltd (renewables entry)
• Oct 2024: Tech transfer deal with TDK India for smart metering sensors
• Preferential Allotments: 2 rounds at ₹144/share (current price ₹99)

Basically, they’re acting like a midcap in SME clothing.

7. 💳 Balance Sheet — How Much Debt, How Many Dreams?

• Total Debt: ₹26.8 Cr (up from ₹14.4 Cr)
• Equity: ₹19.6 Cr
• Reserves: ₹46.4 Cr
• D/E: 0.57x (safe but rising)
• Assets: ₹115.6 Cr
• Investments: ₹23.9 Cr (Famous Power + financial)

Mild leverage + aggressive capex = high ambition mode.

8. 💵 Cash Flow — Sab Number Game Hai

• FY25 CFO: -₹2.92 Cr (operating cash negative) 🔴
• CFI: -₹14.4 Cr (capex & acquisitions)
• CFF: +₹25.3 Cr (via preferential + debt)
• Net Cash Flow: +₹7.96 Cr

Cash flow is entirely funding-led. Profit ka paper trail hai, cash ka nahi.

9. 🔢 Ratios — Sexy or Stressy?

• ROCE: 11.4% | ROE: 7.78%
• OPM: ~10.4% (stable)
• Debtor Days: 188 ❌
• Inventory Days: 109 ❌
• CCC: 199 days — disco dancer levels of delay
• Asset Turnover: 0.67x

Strong gross margins, but working capital cycle is a serious drag.

10. 📊 P&L Breakdown — Show Me the Money

• FY25 Sales: ₹77.69 Cr
• EBITDA: ₹8.09 Cr | Margin: 10.4%
• Net Profit: ₹4.29 Cr
• EPS: ₹2.19
• No dividends. Reinvesting mode ON.

11. 🏋️ Peer Comparison — Who Else in the Game?

The valuation assumes it will grow into a Genus or Shilchar. Risky assumption unless cash flows improve.

12. 👤 Miscellaneous — Shareholding, Promoters

• Promoters: 57.5% (down 3.3% in Mar 2025)
• FII: 0.25% (tiny, declining)
• DII: 0.00% (gone)
• Public: 42.25% (retail absorption post allotment)
• Shareholders: 1,286 (tight float)
• No pledging

13. 🧱 EduInvesting Verdict™

Akanksha Power is that ambitious IIT grad from a Tier 3 town — full of drive, solid in theory, but still struggling with the practicals.

• Orderbook? Solid.
• Innovation? Check.
• Execution? In progress.
• Cash Flow? Missing.

If they pull off their data center + Schneider + renewable plan without frying the balance sheet, it could be the next Genus Power in the making.

Right now, it’s priced like a future hero, but playing like a talented underdog.

FV Range: ₹54 – ₹88

Tags: Akanksha Power, SME Stock, Electrical Infra, Schneider Electric, AI Data Centers, Smart Metering, RDSS Orders, EduInvesting 13-Point Format

✍️ Written by Prashant | 🗓️ July 8, 2025