Goal: ₹9,835
CMP: ₹8,173.35
Shilchar Applied sciences operates within the area of interest phase of producing transformers, particularly inverter obligation transformers (IDT) and distribution transformers, catering primarily to the renewable power sector (photo voltaic and wind).
It has the potential to provide transformers with voltage scores of as much as 132kV, although its focus stays on manufacturing transformers rated 66kV and under, which represent nearly all of its output. Roughly 50 per cent of its income is derived from exports, with common realisations of round ₹10 lakh per MVA.
To fulfill rising demand in each home and worldwide renewable power markets, the corporate has expanded its manufacturing capability by 3,500 MVA.
The corporate has set an income goal of ₹550 crore for FY25, aiming to additional scale as much as ₹750–800 crore in FY26. EBITDA margins are anticipated to stay robust at 25–28 per cent over the subsequent two years, reflecting operational effectivity.
We advocate a ‘Purchase’ score for Shilchar Applied sciences with a goal value of ₹9,835. This displays a P/E a number of of 34.5x, based mostly on an estimated EPS of ₹285.08 for FY27E. The corporate’s robust development prospects, pushed by 4X capability enlargement alternative, improved EBITDA margin and beneficial demand in renewable power sector.
