Small Cap Proxy for Green Energy & Data Centers ?

Описание: In this video, we deep-dive into a high-growth power equipment manufacturer that is emerging as a strong proxy for the global data center and AI boom. As global technology giants like Amazon, Microsoft, Google, and Meta accelerate massive capital expenditure on data centers, the power requirement for AI infrastructure is rising exponentially—and this company stands right at the center of that trend.

The company currently has a robust order book secured for the next 18–24 months, providing strong revenue visibility. Over the last five years, operating performance has improved significantly, with operating margins expanding from ~7% in 2020 to ~18% by 2025. Operating profits have grown sharply from ₹30 crore to over ₹235 crore, and the company is expected to deliver around ₹325 crore in operating profits in FY26.

Despite ongoing delays in the India–US trade deal, the company remains well-positioned. Around 15–20% of revenues come from the US market, and in case of prolonged trade uncertainty, the company has a Plan B in place. It operates a manufacturing facility in Turkey, enabling exports to the US at a significantly lower tariff (~15%) compared to India (~50%), ensuring competitiveness and margin protection.

In its FY25 annual report, management made a powerful statement:
“When world power is down, we power up.”
This highlights the company’s critical role in global energy infrastructure.

The company manufactures steam, hydro, gas, and wind-based generators, making it a diversified player across power generation technologies. In addition to generators, it also manufactures industrial motors, a segment that delivers higher margins. Currently, motor revenues stand at around ₹160 crore, with management targeting a scale-up to ₹500 crore in the coming years.

So far, the company has supplied 7,604 generators across 111 countries, underlining its strong global footprint. With the upcoming commissioning of its third manufacturing plant in Bengaluru, total installed production capacity will expand to ₹2,500 crore, enabling the next phase of growth.

Revenue diversification remains strong, with 60% of revenues from exports and 40% from the domestic market. Globally, competition in this niche segment is extremely limited, with only a few players from Europe and Japan, and this is the only manufacturer from India operating at this scale.

This video covers:

Data center & AI power demand theme

Order book visibility and margin expansion

Export strategy and tariff arbitrage

Manufacturing capacity expansion

Motors business growth opportunity

Watch the video for a detailed understanding of the company’s business model, growth strategy, and long-term potential.

Join Tiny Titans -
https://valueeducator.com/tiny-titans/

Join Emerging Titans -
https://valueeducator.com/emerging-ti...

Disclosure
SNM Value Educator Research Services LLP is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000019789.

Standard Warning
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer
Registration granted by SEBI, enlistment with RAASB and certification from NISM in no way guarantee performance of the Research Analyst or provide any assurance of returns to investors.

Check out my other videos:
Next Mega Trend | Don't Miss This Sector:   • Next Mega Trend | Don't Miss This Sector  

Follow me on :
Twitter :   / valueeducator  
Instagram :   / valueeducator  
Facebook :   / valueeducator  
Email: [email protected]

#greenenergy #smallcapstocks #valueeducator

Timelines -
00:00 Introduction
2:30 Business Model
3:10 Products
4:20 Manufacturing Plants
5:00 Order Book
6:10 Capex in AI
8:10 Competitive Structure
9:20 Steam generators
9:50 Hydro generators
10:30 Motors Division
11:20 UK Design Centre
12:40 Cost competitive Products
13:50 Balance sheet and Growth Guidance
15:40 Conclusion