Technical chart study
Monthly chart
as per monthly chart pattern we can see that stock was trading with lower highs and higher lows from past 10 years, as per chart pattern we can say that it has developed symmetrical chart pattern and even given a successful breakout at 300 level, and able to surpass past two lower tops or you can say able to give 14 years high. “whenever bigger trend change pattern appears at bottom or top stock tend to move in that direction to get new high or low.
so strong price breakout and strong volume backing in past 3 months suggest that, there is strong development going on in company and thus investor betting at current price with strong volumes as its a long term breakout.
Weekly chart
even if we study weekly chart then we can see pattern breakout of “ascending triangle” and price has taken target of pattern. and reason we posted weekly chart is to see that breakout has happen with strong volumes and price still sustaining upside, even on daily chart its moving with flag pattern.
and as far as chart pattern concern our simple assumption is, recently strong changed its long term pattern on monthly chart, even strong patterns on weekly and daily chart with strong volumes and its only suggest us one thing that there are some changes or development are happening within company and its effect we are seeing on price and volume.
as per triangle pattern it should go till 570-600 level, and then after it should even go for fresh high above 865.50, and if able to sustain beyond this then next can be 1600-1800 zone possible and this can even take 2-3 years.
Fundamental outlook
About company
Indo Tech Transformers Ltd. is a leading transformer manufacturer in India. It was founded in 1976 and is headquartered in Kancheepuram, Tamil Nadu. The company offers a complete line of transformer products for the generation, transmission, and distribution of electric power. Indo Tech Transformers has a strong track record of quality and reliability, and its products are used by customers all over the world.
Some of the key features of Indo Tech Transformers include:
- State-of-the-art manufacturing facilities
- Accredited testing lab
- Experienced and qualified team
- Commitment to quality and reliability
- Wide range of products
- Global reach
Indo Tech Transformers is a major player in the Indian transformer market, and it is well-positioned to continue to grow in the years to come. The company is committed to providing its customers with the best possible products and services, and it is confident that it will continue to be a leader in the transformer industry.
Here are some additional details about Indo Tech Transformers:
- Parent organization: ProlecGE
- Revenue (2022): INR 5.5 billion
- Employees: 1,500+
- Products: Power transformers, distribution transformers, inverter transformers, converter transformers, special application transformers
- Customers: Utilities, industries, government agencies
- Locations: India, Middle East, Africa, Southeast Asia
Developments and future
Indo Tech Transformers is constantly developing new products and technologies to meet the needs of its customers. Some of the key developments that the company is working on include:
- Advanced manufacturing techniques to improve the efficiency and reliability of transformers
- New materials that can withstand higher temperatures and voltages
- Smart transformers that can be remotely monitored and controlled
- Transformers that can be used in renewable energy applications
Indo Tech Transformers is also investing in research and development to stay ahead of the curve in the transformer industry. The company is confident that these developments will help it to continue to grow and succeed in the years to come.
Here are some of the future trends that could impact Indo Tech Transformers:
- The growth of renewable energy
- The increasing demand for power in developing countries
- The need for more efficient and reliable transformers
- The development of new materials and technologies
Indo Tech Transformers is well-positioned to capitalize on these trends. The company has a strong track record of innovation, and it is committed to providing its customers with the best possible products and services. I am confident that Indo Tech Transformers will continue to be a leader in the transformer industry in the years to come.
SORT analysis of Indo Tech Transformers Ltd
Strengths:
- Strong track record of quality and reliability
- Wide range of products
- Global reach
- Commitment to innovation
- Experienced and qualified team
- State-of-the-art manufacturing facilities
- Accredited testing lab
Opportunities:
- Growth of renewable energy
- Increasing demand for power in developing countries
- Need for more efficient and reliable transformers
- Development of new materials and technologies
Threats:
- Competition from international players
- Changes in government regulations
- Economic downturn
- Natural disasters
Recommendations:
- Continue to invest in research and development
- Expand into new markets
- Partner with other companies to develop new products and technologies
- Stay ahead of the curve on regulatory changes
- Implement risk management strategies to mitigate the impact of threats
Expectations and possibilities in coming years
- The company will continue to grow its market share in India and other developing countries.
- It will expand its product range to include more renewable energy-related products.
- It will invest in research and development to develop new materials and technologies for transformers.
- It will partner with other companies to develop new products and technologies.
- It will stay ahead of the curve on regulatory changes.
- It will implement risk management strategies to mitigate the impact of threats.
Overall, I believe that Indo Tech Transformers Ltd. is well-positioned for future growth. The company has a strong track record, a wide range of products, and a global reach. It is also committed to innovation and is investing in research and development. I believe that these factors will help the company to continue to grow and succeed in the years to come.
Here are some specific examples of how Indo Tech Transformers could grow in the next 2-4 years:
- The company could expand its manufacturing capacity to meet the growing demand for transformers.
- It could open new sales and distribution offices in key markets.
- It could acquire other transformer companies to expand its product range and reach.
- It could develop new products and technologies to meet the needs of its customers.
Indo Tech Transformers is facing some challenges, such as competition from international players and changes in government regulations. However, I believe that the company is well-positioned to overcome these challenges and continue to grow in the years to come.
Fundamental Data analysis on yearly results
Market Cap ₹ 480 Cr.
Current Price ₹ 462
High / Low ₹ 481 / 164
Stock P/E 18.7
Book Value ₹ 161
ROCE 17.3 %
ROE 16.3 %
Face Value ₹ 10.0
Industry PE 35.8
Profit growth 111 %
Promoter holding 75.0 %
EPS ₹ 24.2
ROE 3Yr 10.4 %
Qtr Profit Var 218 %
Opert Prft Gwth 38.3 %
Overall market cap is nearly 500 cr and having sales of nearly 370 cr last year with the profit margin more than 8% and thus its providing good ROCE and ROE percentage. Even its showing profit growth of 111% and from FY14 to FY19 company was in loss only, we seen good turnaround from FY20 and within next 3 years company able to grow its profit by 1340% and thats a good and huge growth if we compare with past 5 years performance.
below is data and growth chart of past 10 years financial data, which can surly give us insight about companies growth and future.
above fundamental graph clearly shows that till 2020 expenses were more than sales and thus before 2020 company was in loss, but after 2020 as soon as expenses lowering down, company started to generate operational income and able to grow it in good speed in coming years. and thus we can see that price rising with eps and pe.
Final outlook
As we studied technical chart which indicate us about strong trend change on longer term with its continuation, then after fundamental data given us outlook of its growth prospect, and basic info about company also indicate that company and its people working hard and growing in their own sector with different possibilities.
with the combination of above data we expect that technically and fundamentally stock should perform very-well for coming years and this can even lead price multiplication so one can look to invest in such a good stock and sector, and as per our study it show that its a value buy at 400-460 range with possible up move till 800-1600-2800 in coming 3-5 years, and strong support zone is at 250 level to take care about.