Multibagger stock Transformers & Rectifiers locked in 5% upper circuit for 2nd straight session. Here’s why | Stock Market News
Source: Live Mint
Shares of Transformers & Rectifiers India (TRIL), a leading transformer manufacturer, were locked in the 5% upper circuit limit for the second straight day on February 20, reaching ₹405 apiece.
The uptick in shares followed a domestic order for the supply of transformers worth ₹166.45 crore. On Tuesday, the company informed investors through an exchange filing that it had secured an order from Hyosung T&D India Private Limited for the supply of single-phase coupling transformers and single-phase transformers for TBCB projects, which will be delivered by the next financial year.
This is the second order for the company in a month. In mid-January, the company bagged an order worth ₹362 crore from multiple clients, including Power Grid Corporation of India and KEC International.
In a separate filing to the exchanges, the company announced that its subsidiary, TARIL Switchgear Private Limited, had launched 245 kV High Voltage Bushings and successfully completed a Short Circuit Test on an Inverter Duty Transformer.
Meanwhile, TRIL also reported achieving a milestone with the successful completion of a Short Circuit Test on an 8.8 MVA 33/2X0.690 kV Inverter Duty Transformer with aluminium winding, conducted at CPRI (Central Power Research Institute), Bangalore. Inverter Duty Transformers are primarily used for renewable energy transmission.
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The company’s shares have experienced a consistent upward trend since July 2022, without any significant corrections, providing substantial returns to shareholders. During this period, the stock price has surged from ₹14.65 to ₹405, resulting in an impressive return of 2,664%.
The remarkable surge in Transformers & Rectifiers’ share price is driven by strong order wins, robust financial growth, and rising power demand in India. Additionally, the company is capitalizing on the expansion of hydrogen energy capacity, increasing product inquiries, and a steady inflow of orders from both domestic and international markets.
During the December-ending quarter (Q3FY25), the company secured new orders worth ₹631 crore and has an unexecuted order book of ₹3,686 crore, as per the company’s earnings filing. Additionally, it stated that ₹19,000 crore worth of inquiries are under negotiation.
It posted a 52% YoY jump in its consolidated revenue from operations to ₹559 crore, while net profit improved by 243% YoY to ₹55 crore.
TRIL serves a wide range of sectors, including power generation, transmission & distribution, railways, renewable energy, infrastructure, industrial manufacturing, and more. The company has a strong domestic presence in India and has successfully expanded globally, exporting products to various countries across Asia, Africa, the Middle East, and beyond.
Its diverse product range includes power transformers up to 500 MVA & 1200 kV Class, furnace transformers, rectifiers, and distribution transformers, as well as specialty transformers.
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