This industrial stock is trending on September 23

The company produces, designs, constructs, and provides maintenance for technologically sophisticated goods and systems used in the power grid.

On September 23, the market is trading in the red. At 11:47 am, the S&P BSE Sensex is trading at 58542.45, down 0.98% on the day, while NIFTY50 is down 0.93% and trading at 17466. About sectoral performance, Healthcare is the top gainer, while Financials and Auto are among the top losers on the day. Regarding stock-specific action, Schneider Electric Infrastructure is among the top gainer in BSE group ‘A’.

Shares of Schneider Electric Infrastructure have surged 10.71% and are trading at Rs 184.55, as of 11:47 am. The stock opened at Rs 168.45 and so far, has made intraday high and low of Rs 188.3 and Rs 167.7, respectively.

Schneider Electric Infrastructure is engaged in the business, which is one of the key drivers toward a more resilient and sustainable carbon-neutral future.

It produces, designs, constructs, and provides maintenance for technologically sophisticated goods and systems used in the power grid. Among its clients are Torrent Power, Mazagon Dock, and Tata Projects. The company also works to build out the infrastructure for EV charging in India.

Talking about company financials, the sales growth has remained poor, where 10-year CAGR growth stood barely at 1%. In FY22, the company reported sales at Rs 1530 crore and a net profit of Rs 28 crore. Before FY22, for nine years, the company generated no profits.

However, the latest June quarter remains good for the company where it recorded a sale of Rs 371 crore, 28.9% YoY growth from Rs 288 crore sales in Q1FY22. The net profit for Q1FY23 stood at Rs 27 crore.

About the shareholding pattern, 75% of the company’s stake is owned by the promoters, 0.27% by FIIs, 2.2% by DIIs, and the rest 22.53% by non-institutional investors.

The company has a market capitalisation of Rs 4423 crore and belongs to S&P BSE small-cap Index. The stock is trading at a TTM PE multiple of 56.76x.