Diamond Power shares surge after major order win

Shares of Diamond Power Infrastructure reached the 5% upper circuit limit on March 24 after the company received a ₹215 crore order from Adani Green Energy. The stock price climbed to ₹99 each following the announcement. This order is for the supply of conductors for the Khavda Power Project in Gujarat. The recent order is the second major deal for Diamond Power in just under a week. Earlier, the company secured a ₹175 crore contract from Associated Power Structures for AL-59 Conductors. Diamond Power is a small-cap stock with a market value of ₹6,500 crore and is a known producer of power cables and conductors. The company's operations are spread across India, with a large manufacturing plant in Vadodara. They are currently re-commissioning their production facility and aim to finish by September 2025. Diamond Power supplies cables to government distributors and private contractors, as well as exports. The Indian wire and cable market has grown significantly, reaching about ₹750 billion in FY 2022-23. The sector is expected to expand further, driven by government investment and increased private spending. Despite recent profit taking, Diamond Power's stock has still gained over 100% in the past year. It is up by an impressive 4,360% over the last five years. In March, the company started commercial production at a new rod mill which will produce AL 59 Wire Rods.