1. At a Glance
TD Power Systems makes generators. But not the kind your neighbor rents for a wedding. We’re talking 200 MW beasts that run steam, hydro, and diesel plants. With a 30% ROCE, no debt, and a promoter exit twist — this one’s got volts, jholts, and jolts.
2. Introduction with Hook
TD Power is what happens when you mix German engineering precision with Indian stock market enthusiasm and a pinch of “plot twist” — a promoter who walked out during the rally.
- FY25 Net Profit: ₹175 Cr
- FY25 Revenue: ₹1,279 Cr
- ROCE: 30.4%, ROE: 22.3%
- Market Cap: ₹7,760 Cr | P/E: 44.4
From loss-making in FY17 to 11.2x EPS growth in 5 years, this is your classic “turnaround, now fully loaded with free cash flow.”
3. Business Model (WTF Do They Even Do?)
TDPS makes alternators — also known as AC generators. These are used to convert mechanical energy from turbines into electrical energy. Clients include:
- Thermal power plant EPCs
- Hydro power developers
- Diesel/Gas engine OEMs
- Wind turbine manufacturers
Capacity Served:
- Steam/Gas: 1–200 MW
- Hydro: up to 35 MW
- Diesel/Gas Engines: up to 20 MW
- Wind: Customized
Sales Mix:
- Domestic: ~50%
- Exports (Europe/US/Asia): ~50%
Moat: Precision engineering + certifications + global client base.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 872 | 1,001 | 1,279 |
| EBITDA (₹ Cr) | 134 | 171 | 235 |
| Net Profit (₹ Cr) | 97 | 118 | 175 |
| ROCE (%) | 22% | 25% | 30.4% |
| ROE (%) | 17% | 19% | 22.3% |
YoY Growth FY25:
- Revenue: +28%
- EBITDA: +37%
- Net Profit: +48%
- EPS: ₹11.18
5. Valuation
A. P/E Based:
- EPS FY25 = ₹11.18
- Peer P/E = 35–45x
- FV Range = ₹391 – ₹503
B. EV/EBITDA Based:
- FY25 EBITDA = ₹235 Cr
- EV/EBITDA = 15–18x
- EV = ₹3,525 – ₹4,230 Cr
- Net Debt: NIL
- Equity Value ≈ EV
- FV/Share: ₹450 – ₹540
C. P/BV Based:
- Book Value: ₹55.1
- P/B Range (RoE > 20%): 4.5–6.0x
- FV Range: ₹248 – ₹330
Fair Value Range: ₹420 – ₹510
(Valuation now catching up with performance — finally.)
6. What’s Cooking – News, Triggers, Drama
🚨 Major Trigger:
- Promoters sold >7% stake in June 2025 — holding now at 26.88%.
- Meanwhile, FII holding jumped to 23.7%. Clearly someone’s confident.
🛠️ Orders + Expansion:
- Massive order inflow in export markets
- CAPEX visible — CWIP jumped to ₹17 Cr
🎯 Key Risks:
- Promoter exit = red flag for some
- High working capital cycle (189 days)
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital (₹ Cr) | 31 | 31 | 31 |
| Reserves (₹ Cr) | 573 | 674 | 829 |
| Borrowings (₹ Cr) | 0 | 0 | 12 |
| Net Worth (₹ Cr) | 604 | 705 | 860 |
| Total Assets (₹ Cr) | 903 | 1,038 | 1,364 |
Verdict:
- Clean BS with minimal leverage
- Promoter stake exit didn’t impact operational aggression
- Book Value = ₹55.1 — trending up 20%+ CAGR
8. Cash Flow – Sab Number Game Hai
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO (₹ Cr) | 89 | 84 | 40 |
| CFI (Investing) (₹ Cr) | -13 | -34 | -34 |
| CFF (Financing) (₹ Cr) | -89 | -16 | -7 |
| Net Cash Flow (₹ Cr) | -13 | 34 | -1 |
Red Flag Alert:
Operating cash declined sharply in FY25 despite record profit. Working capital eating the wallet?
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 22 | 25 | 30.4 |
| ROE (%) | 17 | 19 | 22.3 |
| Debtor Days | 113 | 112 | 125 |
| Inventory Days | 123 | 139 | 165 |
| CCC (Days) | 154 | 173 | 189 |
| WC Days | 100 | 104 | 124 |
Insights:
- ROCE on 🔥
- Working capital on 🔥 too — in a bad way
- Operating efficiency needs attention to sustain cash flow
10. P&L Breakdown – Show Me the Money
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 872 | 1,001 | 1,279 |
| EBITDA (₹ Cr) | 134 | 171 | 235 |
| EBITDA Margin (%) | 15.4% | 17.1% | 18.4% |
| Net Profit (₹ Cr) | 97 | 118 | 175 |
| EPS (₹) | 6.2 | 7.58 | 11.18 |
| Dividend (₹/share) | 1.00 | 1.20 | 0.65 |
Commentary:
- EPS growth is compounding at 40%+
- Margins inching up with scale
- Final dividend reduced = conserving for growth?
11. Peer Comparison
| Company | CMP ₹ | P/E | ROCE % | PAT (Cr) | Sales (Cr) | OPM % | P/BV | ROE % |
|---|---|---|---|---|---|---|---|---|
| ABB India | 5,647 | 63.3 | 38.7 | 1,889 | 12,267 | 18.9% | 16.9 | 28.8 |
| Siemens India | 3,128 | 59.3 | 23.6 | 1,879 | 17,507 | 12.0% | 9.0 | 17.7 |
| CG Power | 668 | 111 | 37.5 | 947 | 9,909 | 13.3% | 26.5 | 27.6 |
| TD Power Systems | 497 | 44.4 | 30.4 | 175 | 1,279 | 18.4% | 9.0 | 22.3 |
Conclusion:
TDPS is punching above its weight. ROCE & OPM rival ABB. But valuation is still on the “reasonable” side compared to CG/Siemens.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun 2023 | Jun 2024 | Jun 2025 |
|---|---|---|---|
| Promoters | 58.43% | 34.26% | 26.88% |
| FIIs | 2.61% | 17.79% | 23.70% |
| DIIs | 16.33% | 26.9% | 25.29% |
| Public | 22.62% | 21.02% | 24.13% |
- Plot Twist: Promoters offloaded 32% in 2 years
- FII Takeover: From 2.6% → 23.7%
- Public Participation: Increasing again as smart money piles in
13. EduInvesting Verdict™
TD Power Systems is a rare engineering story: lean, profitable, global, and debt-free. The business has been built like their generators — for long life, heavy duty, and low noise. And now, it’s delivering turbocharged earnings too.
Yes, the promoter dilution raises eyebrows, but institutional investors clearly don’t mind — they’re queuing up like it’s a power-packed IPO every quarter.
Verdict:
Powering profits, electrifying growth, but now at “fully valued” voltage. Let’s hope the working capital doesn’t short-circuit the engine.
Metadata
– Written by EduInvesting Research | 19 July 2025
– Tags: TD Power Systems, Electrical Equipment, AC Generators, Engineering Stocks, ROCE Leaders, Midcap Manufacturing
