Power Microcaps Gain Attention Despite Concentrated Risks and Losses

Two small Indian companies recently listed shares connected to the power industry.

MV Electrosystems makes equipment that helps electric trains use overhead electricity.

Anawil Wire and Engineering makes steel towers for wind turbines.

MV Electrosystems has a large potential order book, but it is not yet profitable and depends heavily on Indian Railways.

Anawil is profitable and growing, but much of its business comes from a few customers and Karnataka.

Both companies have had cash tied up in inventory or working capital.

Madhuri Madhusudan Kela’s percentage ownership in MV Electrosystems fell because the company issued new shares, not because she sold shares.

Mukul Agarwal already owned part of Anawil before it listed.

The article suggests watching several quarters of results before forming an investment view.