The Hindu Business Line : Indo Tech: Betting on growth

With sound growth prospects (CAGR of 25 per cent) and a strong order book position (around Rs 172 crore as on November 30, 2006), market outlook on Indo Tech Transformers appears to be positive.

The optimism is based on the fact that the demand for transformers in the next couple of years would continue to outstrip supply. Dealers said that in comparison to the broad market fall over the past two trading sessions, the counter has marked relatively lower losses.

The stock, which closed 2.30 per cent weaker at Rs 235.65 on the BSE on Tuesday, has gained more than 14 per cent month-on-month. Indo Tech has a strong customer base in South India with State Electricity Boards of Tamil Nadu, Kerala and Andhra Pradesh being its prime customers. It also caters to EPC contractors such as L&T, ABB and Reliance Energy.

Outlook for the next two-three years seems to be good, due to large demand-supply gap. As a result, the company is ramping up its capacity. Analysts tracking the company expect it to report revenues of Rs 124 crore in fiscal 2007 and around Rs 203 crore in fiscal 2008.

Deeptha Rajkumar

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