Shilchar Technologies - Niche Operations, Strong Margins: Anand Rathi

Anand Rathi Report

During FY21-24, Shilchar Technologies Ltd. recorded a 50% revenue compound annual growth rate, with the Ebitda margin expanding from 8.1% to 28.5% and an adjusted profit after tax compound annual growth rate at 155%.

The stock trades at 33 times FY24 earnings per share of Rs 120. For FY26, the company had in the past guided to Rs 8 billion-9 billion revenue, while largely maintaining the current full-year margin of ~28%.

Risks:

Keener competition from peers as they can easily pivot toward manufacturing inverter duty transformers transformers; increased competition in exports could crimp margins.

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