Transformers & Rectifiers India (TRIL), a prominent player in the transformer manufacturing sector, has seen its shares continue to rally for four consecutive days. On Friday, October 11, the company’s stock was locked at ₹720 per share, reaching the 5% upper circuit limit.
This notable surge in share price is a result of several factors, including TRIL’s ongoing success in securing new orders and its outstanding financial performance for the September quarter. The company reported a staggering 1,274% increase in standalone net profit, reaching ₹42.18 crore, compared to just ₹3.07 crore from the same period last year. Revenue from operations was also impressive, amounting to ₹445.93 crore, a YoY increase of 75%, while EBITDA soared by 260% YoY to ₹42.42 crore.
In the September quarter, TRIL secured new orders totaling ₹1,031 crore, bringing its total order book to ₹3,500 crore as of September 2024. Among the significant contracts obtained were a 420 kV three-phase reactor with synthetic organic ester insulating fluid from Power Grid and a 175 MVA EAF transformer order from ArcelorMittal. Furthermore, the company indicated ongoing negotiations for prospective orders worth an impressive ₹18,500 crore, as highlighted in their Q2FY25 investor presentation.
On October 3, TRIL received a substantial order valued at ₹565 crore from Power Grid Corporation for the provision of transformers and reactors ranging from 80 MVAr to 500 MVA and from 420 kV to 765 kV. In addition, during September, it clinched contracts from Rajasthan Rajya Vidyut Prasaran Nigam and SPIL, while in August, it secured orders worth $14 million from Linxon Global Sweden. These developments reflect TRIL’s strategic positioning in a thriving market.
The transformer industry is witnessing a pronounced uptick in orders, driven primarily by robust demand from sectors such as railways, renewable energy, and green technologies. This optimistic outlook positions TRIL favorably as it strives to enhance its market share and capitalize on burgeoning growth opportunities.
The Central Electricity Authority (CEA) has projected an ambitious total investment of ₹7.42 lakh crore from 2022 to 2030 for modernizing distribution infrastructure. Beyond this, various factors are expected to significantly bolster the demand for transformers, projecting a CAGR growth of 12-14% in the Indian transformer market until 2030, thereby offering further opportunities for companies like TRIL.
With a strategic focus on the Transmission & Distribution (T&D) sector, TRIL is well-positioned amid these favorable industry dynamics, aiming to bolster its market presence and expand its reach year over year.
Consistent Growth: A Wealth Creator
Investors have witnessed remarkable returns as TRIL’s shares have displayed a consistent upward trajectory since July 2022, yielding substantial benefits to shareholders. The stock price has surged from ₹29.25 to its current trading figure of ₹780, equating to a phenomenal return of 2,566% over this period.
This year alone, the stock has increased by 237%, contributing to a staggering 314% rise in the calendar year 2023. When looking back over the last five years, TRIL has delivered multi-bagger returns for three of those years, showcasing a solid track record of success. Over the past decade, the company’s stock has consistently provided excellent returns to investors.
Engaged in the production and sale of a diverse range of transformers—such as power, distribution, furnace, rectifier, and specialized transformers—TRIL is positioned at the forefront of the industry, ready to leverage upcoming growth opportunities.
Disclaimer: The insights and recommendations outlined in this article reflect the viewpoints of individual analysts and do not represent the stance of any official entity. It is advisable for investors to consult with certified experts before making any investment decisions.
