Sharing some notes from tracking exports for last 1 yr+ at high level
- Real kicker for them is exports of Power n distribution transformers (supported by huge demand supply mismatch), which have way higher KVA ratings (and they supply directly to Energy giants MNCs - something other Transformer players are yet to crack/scale ) ,
- custom magenetics is a long standing client & exports fall under below HS code, less than 1 KVA (more in telecom & electronics transformers) - this is likely very small in overall scheme of things
- per concall of exports - US are arnd 30% while 70% type is in Middle east, most of tools tracks US side shipments
Promoters deserve credit for getting global approvals and having invested in plant during down cycle years here - all of this is culminating in numbers delivery from last many qtrs (6-7).
investors like @sharemarketgen_ , @T11 and other VPers here have identified the trend way early and got on the ride, and kept sharing info/AGM notes right from times when mkt cap < 300-400 cr , totally different thing as to how many actually continue to hold it given solid rise & a legacy narrative to bucket sector in cyclical etc(however length of cycle is something mkt has surprised many) !! Been a solid learning for self as well.
Transformer sector dynamics and promoter commentaries clearly support tailwinds to persist for some time to come, though names seem to be getting in well discovered zone now.
D - invested
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