📌 At a glance:
Chennai-based Supreme Power Equipment Ltd. reported a 52% YoY surge in H2 net profit, a 32.84% rise in full-year PAT, and is sitting on a juicy ₹116 Cr order book. But with the stock now trading at ₹139.15, the big question is — has this transformer stock already burned through its fuse of upside?
🔧 About the Company
| Detail | Information |
|---|---|
| Name | Supreme Power Equipment Ltd. (SUPREMEPWR) |
| Listed On | NSE Emerge (IPO in Dec 2023) |
| HQ | Chennai, Tamil Nadu |
| Sector | Power & Distribution Transformers |
| Credit Rating | CRISIL BBB-/Stable (Long), A3 (Short) |
| Order Book | ₹116 Cr (as of May 21, 2025) |
| Client Base | TANGEDCO, private EPCs, solar infra firms |
Tamil Nadu ke bijli ke transformer se leke equity investor ke portfolio tak — Supreme Power ab full voltage pe hai 🔌.
📊 FY25 Financials (Consolidated)
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Total Income (₹ Cr) | ₹149.54 | ₹113.59 | 🔼 +31.65% |
| EBITDA (₹ Cr) | ₹29.07 | ₹23.33 | 🔼 +24.60% |
| Net Profit (₹ Cr) | ₹18.60 | ₹14.00 | 🔼 +32.84% |
| EPS (₹) | ₹7.44 | ₹7.12 | 🔼 +4.49% |
H2 FY25 alone saw net profit rise to ₹11.47 Cr (from ₹7.54 Cr last year) — an eye-popping +52% growth.
🔥 Operational Highlights
- 🏗️ New Plant 70% Complete — post-commissioning will expand capacity significantly
- ⚙️ Focus shifting to larger, higher-margin transformers
- 📦 Order book visibility of 9–18 months across solar, utility, and private EPC segments
- 🏆 Winner of “Best Emerging MSME – Listed Company” at MSME Ratna Awards 2024
📦 Big Orders Won in FY25
| Client | Order Value (₹ Cr) | Type | Delivery Time |
|---|---|---|---|
| TANGEDCO | ₹6.05 | 16 kVA distribution transformers | 18 months |
| Chennai EPC #1 | ₹22.26 | Oil-cooled transformers | 9 months |
| Chennai EPC #2 | ₹10.02 | Transformer components | 4 months |
| Solar Coimbatore | ₹3.45 | Outdoor transformers for solar use | Fast track |
| Danya Electric (subsidiary) | ₹4.71 | Power infra project execution | Rolling |
📈 Total Disclosed Order Wins: ₹46.49 Cr
🧾 Total Order Book: ₹116 Cr
🧠 EduInvesting Take
✅ What’s Good:
- Margin-rich product mix, capacity expansion = future-ready
- FY25 earnings show consistency + growth
- Public sector + private clients = diversified exposure
- Positive brand momentum post MSME award
❗ But Here’s The Shock:
At CMP ₹139.15, you’re paying 18.7x earnings — and that’s not cheap for a transformer business.
🔮 Updated Valuation
| Metric | Value |
|---|---|
| FY25 EPS | ₹7.44 |
| CMP (Confirmed) | ₹139.15 |
| Current P/E | 18.7× |
| Conservative FV (15×) | ₹111.60 |
| ⚠️ Overvaluation Zone | +25% above FV |
In short: Markets are already pricing in FY26 growth, expansion benefits, and more orders.
It’s no longer a hidden gem. It’s more like a showroom piece — shiny, loved, and slightly overpriced.
🗨️ What the CMD Said
Mr. Vee Rajmohan (CMD):
“Robust order book, transformer upgrades, and plant expansion give us confidence for sustained growth.”
Translation: “We’ve done the hard part. Now let’s hope the valuations don’t short-circuit before delivery.”
🧾 Supreme vs Peers (Quick Take)
| Company | Revenue FY25 | Net Profit | P/E (approx) |
|---|---|---|---|
| Supreme Power | ₹149.54 Cr | ₹18.60 Cr | 18.7× |
| Voltamp Transformers | ₹1,300 Cr+ | ₹175 Cr+ | 17× |
| V-Guard Industries | ₹4,200 Cr+ | ₹280 Cr+ | 27× |
➡ Supreme is growing fast, but priced near its much larger peers.
📅 FY26 Outlook
- ⚙️ New plant launch will be key for operating leverage
- 🌞 Solar and private infra orders expected to grow
- 📊 We’ll track margin expansion, not just top-line
- 🧾 Expect stronger disclosures post full year of listed operations
🧾 Final Verdict
| Metric | Value |
|---|---|
| CMP | ₹139.15 |
| EPS (FY25) | ₹7.44 |
| P/E | 18.7× |
| FV (15x EPS) | ₹111.60 |
| Verdict | 📉 Fully Priced In |
Supreme Power has transformed from an SME IPO curiosity to a full-on investor darling.
But at this CMP, you’re no longer early — you’re the guy buying the inverter after the lights are back on.
🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: Supreme Power Equipment, FY25 results, transformer stock India, SME IPOs 2023, ₹116 Cr order book, Tamil Nadu power infra, EPS ₹7.44, CMP ₹139.15, power infra multibaggers, emerging MSME winners
