*AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:* 28.06.2020

T D POWER SYSTEMS LTD

CMP 120 ENTRY 110 TO 1115 STOPLOSS 90 TARGET 250++ TIME: 36 MONTHS

TDPS is one of the leading manufacturers of AC Generators in the world with products in the output range of 1 MW to 200 MW for prime movers, such as steam turbines, gas turbines, hydro turbines, diesel engines, gas and wind turbines. Company also manufactures special application generators for Geo Thermal & Solar thermal applications. Company focuses on manufacturing custom-designed generators for its customers who are based all over the world. Since inception, company has manufactured 4,496 generators, including generators exported to 73 countries, with aggregate output capacity of 32,632 MW. Companyhas also completed 110 TG island projects & 14 BTG projects with aggregate output capacity of 3,243 MW. Company has three manufacturing facilities in Bangalore, backed by captive power/water supplies and a well-developed ancillary vendor network. TDPS has its own technology for generators up to 55 MW and is a licensee of Siemens AG for 2 Pole generators from 55 MW up to 200 MW.

With an equity capital of Rs.30.93 crore and reserves of Rs.394.07 crore, TDPS's share book value works out to Rs.137.39. The promoters hold 58.55% of the equity capital, mutual funds hold 17.36% and FPIs hold 2.69% which leaves 21.40% stake with the investing public.

During FY20, it reported 835.63% higher PAT of Rs.29.94 crore on 12.17% higher sales of Rs.514.89 crore and an EPS of Rs.9.76. At CMP, TDPS trades at PE ratio of just 12.3x earnings. It paid 20% dividend for FY19, paid 15% interim dividend for FY20 and declares 7.5% final dividend for FY20.Last year company has completed buyback of Rs.30 crore at Rs.256 per share.

 Its recent high rate was Rs.233 which was formed in February 2018. Stock almost corrected 48.5% from recent high. Government to curb import of heavy electric equipment from China which is highly beneficiary for heavy electric equipment companies like T D Power Systems.