Shares of Diamond Power Infrastructure Ltd, a prominent small-cap stock, witnessed a sharp 5% rise during intraday trading on Friday, December 5. This surge was a direct reaction to the company announcing a major new order win, reinforcing its position as a key player in the power cable manufacturing sector.
Details of the Major Order Win
The catalyst for the stock movement was a significant contract announced on Thursday. Diamond Power Infrastructure received a Letter of Intent (LoI) from Adani Green Energy Limited. The order involves the supply of specialized power cables for two major renewable energy projects.
The company will supply 2,126 kilometres of 33KV High Voltage (HV) cables and 3,539 kilometres of 3.3KV Solar Medium Voltage (MV) cables. These cables are destined for the Khavda project in Gujarat and a project in Rajasthan. The total value of this substantial contract is a staggering ₹748 crore.
In a crucial clarification, the company stated that this is not a related-party transaction. It confirmed that neither the promoters nor promoter group companies have any interest in Adani Green Energy, the entity that awarded the order. The execution of this order is scheduled to begin in January 2026 and must be completed within 12 months.
A Second Big Win from the Adani Group
This latest contract marks the second major order secured by Diamond Power Infrastructure from the Adani Group in less than a month. Earlier, on November 24, the company bagged a ₹276 crore order from Adani Energy Solutions.
That order was for supplying 7,668 km of AL-59 Zebra Conductor, specifically for the Khavda project. The back-to-back orders from a large conglomerate like Adani underscore the company's technical capabilities and reliability as a supplier for critical national infrastructure projects.
Company Profile and Stock Performance
Diamond Power Infrastructure is a leading manufacturer of a wide range of power cables, including Low Voltage (LV), Medium Voltage (MV), and Extra High Voltage (EHV) cables and conductors. Its products are essential for power generation, transmission, distribution, and various industrial applications.
The company's clientele includes:
- Government distribution companies (discoms)
- Private discoms
- Private EPC contractors
- Industrial clients
- Export markets
The stock has been a phenomenal multibagger, delivering a 1,220% return to investors over the last two years. It hit an all-time high of ₹193.60 in October 2024. However, since reaching a one-year high of ₹185 in July, the stock has seen some profit booking, correcting by about 23%.
While the short-term trend may appear weak, the securing of two large orders worth over ₹1,000 crore combined significantly bolsters its long-term growth outlook. The company was acquired through the NCLT process by the GSEC-Monarch Group, marking a successful turnaround story.
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