Indo Tech gets 'transformed'

Indo Tech Transformers is buzzing loud today on the back of a new order. The stock, opened almost 1.5% higher at Rs.1815 and rose 5% to an intraday high at Rs.1881.35. Its 52-week high is at Rs.3792.90. The stick has a low float and its 2-week average volume of trade is less than 4000 shares.

The company, which makes power and distribution transformers, announced the receipt of a purchase order for nine 125 MVA transformers, valued at Rs.78.39 crore plus applicable taxes.

The company’s current order book stands at Rs.450–500 crore, providing 6–12 months of revenue visibility.

While this is a significant order, it is modest compared to total annual revenues (Rs.400–450 crore). Short-term impact on stock may be limited.

Demand in coming months is expected to remain strong due to government capex and renewable energy projects. But risks include execution delays, raw material cost pressures, and sector cyclicality.

Thus the stock is likely to reflect near-term order flow and operational performance, with investor focus on order execution and margin sustainability.