Transformers & Rectifiers India shares hit the 5% upper circuit limit at ₹620 apiece on 24 May 2024. This surge comes after the company announced a significant order win worth ₹161 crore, breaking a five-day losing streak.
The remarkable performance of TRIL’s stock, which has delivered a multibagger return of 167% in less than five months, continues to draw attention from investors and industry analysts alike.
The company revealed in an exchange filing on Thursday that it had secured an export order from AL Anwaar International for a “T&R” MAKE 90 MVA, 132/33 KV Transformer with fittings and accessories.
This substantial order adds to the company’s impressive track record of securing high-value contracts. In February, TRIL bagged an order worth ₹232 crore from the Power Grid Corporation of India, further solidifying its position as a leading player in the transformer manufacturing industry.
TRIL’s success in obtaining these orders has significantly bolstered its unexecuted order book, which stood at 44,594 MVA valued at ₹2,581 crore as of March 31.
This strong order book is a testament to the company’s ability to attract and execute large-scale projects, reflecting its robust operational capabilities and market reputation.
The broader transformer industry is currently experiencing a surge in demand, driven by various sectors such as railways, renewables, green energy, and power.
The Central Electricity Authority has projected a total investment of ₹7.42 lakh crore from 2022 to 2030 for upgrading distribution infrastructure, highlighting the significant growth opportunities within the sector.
The Indian transformer market is expected to grow at a CAGR of 12–14%, providing a favorable backdrop for companies like TRIL to expand their market presence.
TRIL has reported impressive results for Q4FY24, with a 306% increase in consolidated net profit, reaching ₹35.95 crore. The company’s revenue from operations also saw a notable rise, increasing to ₹500 crore from ₹425 crore in the same period last year. For the entire fiscal year, TRIL’s net profit rose by 16% year-on-year to ₹56.09 crore, although revenue from operations decreased to ₹1,291 crore from ₹1,396 crore in FY23. These results underscore the company’s ability to maintain profitability and operational efficiency despite challenging market conditions.
The long-term performance of TRIL’s stock has been nothing short of extraordinary. Over the past five years, the shares have generated an astounding return of nearly 5448%, reflecting the company’s consistent growth and strong market position. This impressive track record has made TRIL a favorite among investors seeking high-growth opportunities in the transformer manufacturing sector.
As the company continues to capitalize on the growing demand for transformers and related products, it is well-positioned to strengthen its market position and drive long-term value for its shareholders.
