Aniket PujariMultibagger small-cap stock: Diamond Power Infrastructure saw its shares locked at the 5% upper circuit limit in intraday trade on Monday, March 24, reaching ₹99 apiece, after the company secured a significant order from Adani Green Energy.
In today’s exchange filing, the company informed investors that it had received a letter of intent from Adani Green Energy Limited worth ₹215 crore for the supply of conductors for the Khavda Power Project in Gujarat.
This was the second major order for the company in less than a week. On Thursday, the company received a letter of intent from Associated Power Structures Limited worth ₹175 crore for the supply of AL-59 Conductors as per GETCO Technical Specifications.
Diamond Power Infrastructure is a small-cap stock with a market capitalization of ₹6,500 crore. It is a leading manufacturer of power cables, including LV, MV, EHV, and conductors. Its products play a critical role in power generation, electricity transmission and distribution, and various industrial applications.
DPIL was acquired through the NCLT process by the GSEC-Monarch Group. The company’s business operations span across India, with a large manufacturing plant in Vadodara spanning 110 acres. The company is in the process of re-commissioning its production facility in phases and expects to complete the process by September 2025.
The company supplies cables to government distribution companies (discoms), private discoms, private EPC contractors, industrial clients, and export markets. During FY24, DPIL identified significant growth opportunities in the solar and electric vehicle (EV) sectors, driven by rising demand for renewable energy solutions and electric mobility.
According to various reports, the Indian wire and cable market surged to approximately ₹750 billion in FY 2022-23, up fromRs 335 billion in FY 2014-15. The industry is estimated to have registered a volume growth of around 10% between FY15 and FY23.
Looking ahead, the sector is expected to grow at a CAGR of 13% through FY27, reaching ₹1,200 billion, fueled by higher government spending on infrastructure, growth in the real estate sector, and increased private capital expenditure.
Stock up over 4,300% in 5 years despite recent dip
The stock has witnessed profit booking since reaching its peak of ₹190 per share in October last year, losing 48% of its value. Despite this steep decline, the stock continues to deliver stellar returns, gaining over 100% in the last year. Over the past five years, it remains up by an impressive 4,360%.
Earlier in March, the company announced the commencement of commercial production at its first rod mill to manufacture Next Generation AL 59 Wire Rods. The facility, operated by DICABS NextGen Special Alloys Private Limited, a wholly owned subsidiary, is located in Vadodara and has a processing capacity of 80 metric tons per day (2,400 metric tons per month).
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
