GE Power India shares soared by 7.5% on December 16, following the extension of a ₹18.27 crore purchase order from MP Power Generating Co.. The order involves supplying boiler parts for the Sanjay Gandhi Power Station and is expected to be completed within the next three and a half months.
Order Details and Impact on Stock
The recent purchase order extension boosted investor confidence, propelling GE Power’s stock upward. Around noon, shares were trading at ₹442 on the NSE, with a significant spike in trading activity. Nearly three lakh shares were traded, surpassing the one-month daily average of two lakh shares.
The company’s strong stock performance has been a highlight of 2024, with its share price nearly doubling year-to-date.
Quarterly Financial Performance
In its July-September 2024 quarter, GE Power India reported mixed financial results:
- Net Sales: Declined by 39% year-on-year, dropping to ₹217.42 crore from ₹354.21 crore in the same period last year.
- Net Profit: Increased by over 8%, rising to ₹66.87 crore, compared to ₹61.85 crore in the previous year.
Despite the decline in sales, the rise in profit highlights improved cost management and operational efficiency.
What’s Driving GE Power’s Growth?
- Order Book Expansion:
The extended purchase order for boiler parts reflects the company’s strong ties with public sector clients like MP Power Generating Co.. - Stock Momentum:
The sharp rise in trading volumes and consistent returns show growing investor interest in GE Power’s future prospects. - Resilience in Profitability:
Even with a decline in sales, the company’s ability to increase profits demonstrates robust operational strategies.
Key Highlights of the Purchase Order
- Client: MP Power Generating Co.
- Project: Supply of boiler parts for Sanjay Gandhi Power Station.
- Order Value: ₹18.27 crore.
- Execution Timeline: To be completed in 3.5 months.
Conclusion
GE Power’s recent purchase order extension and rising stock price signal strong market confidence in the company. Despite challenges in net sales, the firm’s growth in profit and strategic execution of projects position it well for the future. Investors should keep a close eye on this stock as it continues to gain momentum.
