Rs 29 to Rs 287: This debt-free stock turned into a multibagger in three years; down 8% from record high

Shares of TD Power Systems Ltd have delivered multibagger returns in the last three years. The power sector stock, which closed at Rs 29.21 on January 8, 2021 surged to a high of Rs 287.50 in the current session, clocking 884.25% returns during the period.

In comparison, Sensex has surged 46.64% during the period. TD Power Systems stock has gained 99.72% in a year and zoomed 223% in two years. The company had zero borrowings at the end of September 2023 quarter.

In the previous session, TD Power Systems shares ended at Rs 278.40 on BSE. TD Power Systems stock opened higher at Rs 282.95 in the current session. Market cap of the firm stood at Rs 4422.74 crore on BSE.

The stock hit its 52-week low of Rs 121.45 on February 7, 2023 and a record high of Rs 307.90 on December 14, 2023. Since then the stock has lost 8%. Total 0.17 lakh shares of the firm changed hands amounting to a turnover of Rs 48.68 lakh in Tuesday’s session. Later, the stock closed 1.22% higher at Rs 218.80 on BSE.

Abhijeet from Tips2trades said, “TD Power Systems is sideways to bullish on the Daily charts with strong resistance at Rs 300. A daily close above this resistance could lead to target of Rs 327 in the near term. Support will be at Rs 258.”

In terms of technicals, the relative strength index (RSI) of TD Power Systems stands at 56, signaling it’s trading neither in the overbought nor in the oversold zone. TD Power Systems shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

TD Power Systems logged a net profit of Rs 32.8 crore in the September 2023 quarter compared with Rs 19.9 crore in the corresponding quarter of the last fiscal. Revenue in the September quarter rose to Rs 276.5 crore against Rs 219 crore in the corresponding quarter of the last year. Operating profit climbed to Rs 47.2 crore in the September quarter against Rs 25.7 crore in the corresponding quarter of the last year.

TD Power Systems is an India-based manufacturer of air-condition (AC) generators and electric motors for various applications, which are specifically designed and tailor-made to suit the needs of the customers based on their requirements and specifications. The company’s products include generators, motors, replacement, refurbishment and spares.