A Little-Known Stock that Quistly delivered 15,000% Returns –nd Still has Room to Run

In this article, we spotlight a company that has quietly hit the sweet spot for near a decade. It has delivered consistent annual growth, remained profile throughout, generated exceptional returns on every rupee of capital deployed, and rewarded its investors with a staggering 15,000% Five years.

The Kicker? Even after this run, the stock is still trading at a discount.

Shilchar Technologies Ltd: A CONSISTENT COMPONDER

With a market cap of 6,029 Crore, Shilchar is a Technology Manufacturer focused on two broad verticles: electronics and telecom, and power and distribution transformers. Recently, it has also expanded into producing ferrite transformers.

The stock’s performance over the last five years has been born short of spectacular. Form 35 per share in June 2020 to 5,220 as 23 June 2025, Shilchar has delivered an almost unbelievable 15,000% return.

To put it in personal, 1 Lakh Invested Five Years ago Would be Wort Around 1.5 Crore Today, Excluding the Impact of a Recent 2: 1 Stock Split and Any Other Bonuses or Splits Along

In fy25, the company reported a 61% year-on-year increase in earnings per share, jumping from 80 to 129. But this is just one part of a much deeper story.

The Secret: Shilchar’s ‘Circle of Wealth’

At first glance, shilchar’s business may Seem Straightforward –it Generates Revenue Entrely from its transformer segment, manufacturing power transformers, distriers, distromers, Inverter Duty Transformers For Solar, Generator Transformers For Wind, Hydro Transformers, and Furnace Transformers.

But behind this seemingly narrow business lies what can be called shilchar’s circle of wealth-a self-adjusting cycle that quietly pores its growth.

Take sales, for instance. Even with this single product segment, shilchar’s revenue has been on a steady upward trend over the past five financial years, compounding at an impressive 54%. This sharp risk in sales has been driven larger by expenses, which climbed from 19% of total reveal in fy21 to 56% in fy22, before settling at 43% in fy25.

Strong sales have naturally translated into risk operating profits. Shilchar’s Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) Has Grown at a Remarkable Compounded Rate of 128% Between Fy20 and FY25.

And Strong Operating Profits Have LED to Surging Net Profits. Over the past five financial years, net profit has compounded at a Substanti 151%. The company has remained consistently Profitable for more than a decade.

With robust sales and profits in place, management’s capital discipline has further strengthened this growth cycle. Shilchar’s return on Capital Employed (ROCE) Currently Stands at an impressive 71% – One of the highest among industry peers.

Put simply, for every 100 Invested, The Company Generates 71 in Profit. These rights are then reinvested to grow the business further, pay down any obligations, or reward sharehlders through dividends.

Efficient Capital Use has allowed shilchar to eliminate debt entrely. While Being Debt-Free Reduces Financial Risk and Preserves ShareHolder Value, It also also also means the company relieves elective on internal accruals for expansion, which people LIMIT LIMIT LIMIT LIMIT LIMIT LIMITE GOROTH in the future.

In Short: Zero Debt, Consistent Rising Sales, SOARING DEALES, And Industry-LADING CAPITAL EFFICINCY-Chall of it has combined to drive shilchar’s extraordinary 15,000% Share Price Surge Over the Past Five Years.

Operational Excellence Meets Profitability

Shilchar also boasts a high return on equity (Roe) of 53%, meaning that for every 100 of Equity Invested by Sharelders, The Company Generates 53 in Profit. A Strong Roe Signals Management’s Efficiency in Deploying Capital and Enhances The Prospects of Strong Sharehlder Returns.

Over the past five years, shilchar have maintained a consistent average Roe of 44% – A Level Widely Seen as a Hallmark of Financial Strength and PRUDENT MANAGEMENT, Suggesting the Company is conference Creating Significant Value for its sharehlders.

The company has steadily expanded its asset base as well, with fixed assets growing from 39 Crore in FY20 to 59 Crore in FY25, Indicating a Continued Commitment to Capital Expenditure and Capacity Expensation.

Shilchar’s Debt-Free Status, Combined with Its Strong Profitability, Suggests that these expanses are being funded entryly through internal accruals. In addition, the board’s recent recommendation of a 1: 2 bonus issues a strategy to broaden the equity base without Resorting to External Borrowing, Likely to Support Fature Capacity enhancements.

In terms of Valuation, the stock is currently trading at a price-to-earnings (pe) ratio of 41x, close to the current industry of 44X. However, Shilchar’s Own 10-Year Median Pe Stands at 16X, Compared to the Industry’s 10-Year Median of 28x-Indicating that the stock has been significant re-rating over the year.

As of April 2025, The Company’s Order Book Remains Robust at Over 400 Crore. Shilchar is also exploring entry Into Higher MVA/KV Class Transformers as Part of its expansion plans.

In short, nearly every indicator seems to be working in the company’s favor. But as Always, Risks Remain.

Sustainable, Unbroken Growth?

While The Headline Numbers May Look Highly Attractive, Every Company Carries Its Own Set of Risks – Band Shilchar Technologies is No Exception. One Area of ​​Concern is Receivables Management. The company’s debtor days Increased from 86 in FY24 to 134 in FY25, Indicating Slower Collection of Payments, Which Cold Cold Create Liquidity PressureSed Promptly.

Working Capital Days Have also Stretched Significantly – Forrom 77 Days in Fy24 to 144 Days in Fy25 -Mening The Company is Taking MUCH LONEGER TO CORKIT Its Working Capital ITO Reveneue, Furrent Ravenue Liquidity Concerns.

In addition, with approximately 44% of its revionue coming from expenses, shilchar remains exposed to currency flutics and geopolitical risks that would impact Profitabality IF Global Conditions Unfavorable.

Another Potential Red Flag for some investors is the company’s low dividend yield of 0.16% and a payout ratio of just 9%. Despite Strong Profit Growth and a Debt-Free Balance Sheet, Such Modest Payouts May Deter Certain Income-Focused Investors.

Yet, there are compeling positives as well. In Shilchar’s Latest Investor Presentation, Chairman and Managing Director Ajay Shah Said, “We have achieved full capacity utilization ahead of schedule, as demonstrated by our stag Q4 Performance, Anticipated Reaching This Milestone By FY26; however, on a run-also Basis, We Accompiled It In Q4 Itself. Our domestic business.

The same presentation notes that, based on this year’s performance, the board has recommended a final divide of 12.5 per equity share, Subject to ShareHolder Approval, Along with A 1: 2 Bonus Issue.

Overall, supported by Strong Profitability, Healthy Gross and Operating Margins, and Its Highest-Ever Quarterly and Annual Profits, Shilkar Appears Well-Opers Well-Opers Well-Opers Its growing focus on renewable energy transformers and expenses, Combined with Government-LED Grid Grid Modernization Initiatives, Further Strengthens Its Long-TERM Propects.

Conclusion

Shilchar Technologies have delivered strong performaance across every key metric – Sales Growth, Operating Profits, and Net Income – WHILE MINTAINAL MINTAINAL ACEPTINAL EFFCITAL AFFCICINCY, REFTERCECINCY 71% Return on Capital Employed. Backed by a Healthy Order Book and Management’s Confidence in its Expantion Plans, The Company offers a Compeling Propostion for Investors.

That said, these strengths do not come without risks. As Always, Past Performance is No Guarantee of Future Results. In a global environment marked by uncertainty – form tariff wars to cold wars to actual wars – Investors MUST Remain Vigilant, Especially Given Shilchar’s Significant

How Shilchar Technologies Navigates The Near and Long Term will be closed. For now, Thought, the stock is trading at a 15% discount from its all-time high, making it an intriguing name to track.

Suhel khan is an equity market Enthusiast with 10+ Years of Experience in Reading and Analysing Indian Financial Markets. Former Head of Sales & Marketing at a Leading Mumbai-Based Equity Research Firm, He Has a Knack of Finding Stocks Running Under the Radar. He now dedicates his time study and writing about a range of stocks from the biggest bluechip to the almost unknown ons.

Note: We have relied on data from www.screner.in, www.trendlyne.com, and www.tijorifinance.com Throughout this article. Only in cases where the data was not available, have used an alternate, but widely used and accepted source of information.

Disclosure: The Author does not hold shares in any of the companies discusing. The views expressed are for informational purposes only and should be considered investment advice. Readers should conduct their own research and consult a financial professional before making investment decisions.