TD Power switches 'on'

TD Power Systems, which makes transformers for ACs is on a jolly good ride today. The stock is showing good volumes with price rising over 4.5% at Rs.345 levels, with an intra day high at Rs.353.75. Its 52-week high is at Rs.375.

The stock has got the go-ahead from the RBI for 100% FII investment limit from the current limit of 49% of the paid up capital. This 100% buying permit was allowed after passage of resolutions by its board of directors and a special resolution by shareholders to enhance the limit for purchase of its equity shares and convertible debentures by FIIs. RBI has informed that purchases could be made through primary market and through stock exchanges in the Bengaluru based company.

33% of the company’s orders are for exports and its current order book is at Rs.370 crore. The company recently commissioned a new plant to produce electric generators from 55 megawatt to 200 megawatt but demand is not as robust as expected and orders for these industrial AC generators are expected to come in 3-40% below estimates. But in current fiscal, it expects 60% of the topline to come from exports