Electrifying Investor Portfolios: How Olectra Greentech Gave 733% Returns In 5 Years

Published by Trinkerr Academy on

Your ₹1 lakh would have snowballed into ₹7.43 lakhs in 5 years had you invested in this stock! This small-cap stock has given 733% returns in the last five years, i.e., 1.5x growth. Let’s take a look at this company.

💼 Stock: Olectra Greentech Ltd.


⚡ About The Company
Olectra Greentech was incorporated in 1992. The company is primarily engaged in the manufacturing of composite polymer insulators and electrical buses. The stock was trading at ₹72.60 apiece on July 21, 2017 and the CMP is ₹604.9 as of July 19, 2022. The price of each share has more than doubled from last year when it was trading at ₹242 per share (as of July 19, 2021).

⚡ Claim to Fame
Olectra Greentech Ltd. is India’s largest manufacturer of electric buses and has set up the country’s biggest electric bus factory with a capacity of 10,000 units on the outskirts of Hyderabad. It is also one of the key players in making the most of the government’s incentives for the clean and renewable energy sector. The company manufactures flagship products, Olectra K6, K7, and K9 buses.

⚡ Revenue Breakdown
▪️ Electric Bus: 70%
▪️ Composite Polymer Insulators: 30%

⚡ Reasons Behind Its Growth
▪️ Net Sales at ₹268.10 cr in March 2022, up by 85.21% from ₹144.75 cr in March 2021.

▪️ Quarterly Net Profit at ₹17.47 cr in March 2022, up by 93.97% from ₹9 cr in March 2021.

⚡ The Path Ahead
▪️ Has delivered good profit growth of 34.42% CAGR over the last 5 years.

▪️ Is virtually debt-free.

▪️ Has shown strong revenue growth of 19.74% for the past 3 years.

▪️ Can benefit from the Indian government’s push toward green energy wherein it has cleared a ₹12,031 crore plan to set up infrastructure to transmit electricity from renewable energy projects as it seeks to boost the output from green sources and meet half of the nation’s energy requirement from them by 2030.


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