CMP: ₹144.70 | Market Cap: ₹360–400 Cr (Est.) | NSE Symbol: SUPREMEPWR | FY25 EPS: ₹7.44
⚡ At a Glance
Tamil Nadu-based transformer manufacturer Supreme Power Equipment Ltd just announced its FY25 results, and it looks like they’ve plugged into the right circuit:
- Revenue: ₹149.54 Cr (+31.6% YoY)
- Net Profit: ₹18.60 Cr (+32.8% YoY)
- EBITDA: ₹29.07 Cr (+24.6% YoY)
- EPS: ₹7.44 (vs ₹7.12 last year)
But the real headline? The company’s order book now stands at ₹116 Cr — roughly 9 months of revenue in the bag.
🏭 About the Company
| 🏢 Metric | 💡 Details |
|---|---|
| Business | Power & Distribution Transformer Manufacturing |
| Founded | 1994 (as a firm), incorporated in 2005 |
| HQ | Chennai, Tamil Nadu |
| Clients | TANGEDCO, private electric utilities, solar firms |
| Units Supplied | 17,000+ transformers till date |
| NSE Listing | Listed on NSE Emerge in Dec 2023 |
SPEL is no upstart — it’s an old-school infra company with transformer oil in its veins.
📊 FY25 Financials (Consolidated)
| Metric | FY25 | FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹149.54 Cr | ₹113.59 Cr | +31.65% |
| EBITDA | ₹29.07 Cr | ₹23.33 Cr | +24.60% |
| Net Profit | ₹18.60 Cr | ₹14.00 Cr | +32.84% |
| EPS | ₹7.44 | ₹7.12 | +4.49% |
H2FY25 alone saw a profit jump of 52% to ₹11.47 Cr, even as EPS surged to ₹4.59 per share.
🔌 Operational Highlights
| Order Description | Value (₹ Cr) | Client |
|---|---|---|
| Distribution transformers (TANGEDCO) | 6.05 | TANGEDCO |
| Distribution transformers (Chennai-based) | 22.26 | Private utility |
| Transformer components | 10.02 | Reputed Chennai client |
| Outdoor transformers for solar project | 3.45 | Coimbatore-based solar firm |
| Danya Electric order (90% subsidiary) | 4.71 | Private |
- 🏗️ New Plant: 70% construction complete — to boost capacity for large transformers
- 🏆 Award: “Best Emerging MSME – Listed” at MSME Ratna Awards 2024
- ✅ CRISIL Rating: Long-term: BBB-/Stable | Short-term: A3
🧠 EduInvesting Take
Supreme is what SME infra dreams are made of — low noise, high wattage performance.
Here’s why it stands out:
- Consistent YoY growth in both revenue and profit
- Clean, asset-backed business with sector tailwinds from power demand
- New plant coming online soon, enabling larger transformers = higher margin
- Customer diversification — not just TANGEDCO dependency
But wait… why is the EPS growth only 4.5% despite PAT jumping 32%?
🕵️ Answer: Likely due to equity expansion post-IPO in Dec 2023 — dilution effect.
Still, at ₹144.70 CMP, stock trades at ~19x trailing PE — fair for an SME with clear order visibility.
💹 Forward-Looking Valuation
| Metric | FY25 Actual |
|---|---|
| EPS | ₹7.44 |
| Assumed PE Range | 18x–22x |
| Fair Value Range | ₹134–₹164 |
So at ₹144.70, you’re buying it within the fair value range, with upside if the new plant kicks in.
🧨 Risks to Watch
- Execution Risk: New facility 70% complete — delays could hit growth
- Client Concentration: Bulk of orders from southern India
- Power Sector Tender Volatility: Highly lumpy business cycles
- EPS Flattening: Equity dilution post-IPO weighing on per-share metrics
🌟 What’s Working
- Robust order book of ₹116 Cr = 9–10 months visibility
- Diversification into private clients, solar firms
- CRISIL ratings suggest solid creditworthiness
- Recognition + strong MSME credibility
🏁 Verdict
Supreme Power Equipment Ltd isn’t sexy. It’s not startup-y. But it’s doing one thing really well: selling transformers to India’s power-hungry grid.
With the new plant nearly ready and an order book humming, FY26 could be its breakout year.
If the transformers get bigger, margins will get better.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: Supreme Power Equipment, FY25 Results, SME Transformer Stocks, Tamil Nadu Infra, CRISIL Ratings, Order Book ₹116 Cr, Power Infra Growth, EduInvesting
