Multibagger Stock: Transformers and Rectifiers India Ltd.

Transformers and Rectifiers India Ltd.

Multibagger Stock: ₹1.25 Lakh Turned into Over ₹1 Crore in 5 Years, with a Jaw-Dropping 1180% Return in Just 2 Years

The stock market has long been a playground for investors seeking opportunities that could provide exponential growth, and Transformers and Rectifiers India has emerged as one of the most prominent examples of such a windfall.

Over the past five years, this stock has delivered extraordinary returns, transforming small investments into massive profits. Notably, an investment of ₹1.25 lakh made five years ago would now be worth over ₹1 crore—an astounding 80-fold increase.

Additionally, its remarkable 1180% return over the past two years has further cemented its place as a standout performer in the market.

A Major Surge: 164% Growth in One Year

On February 6, 2025, shares of Transformers and Rectifiers India surged by 5%, hitting an upper circuit limit of ₹854.55 on the Bombay Stock Exchange (BSE).

The stock ultimately settled at ₹853.55 at the close of trading, marking a significant milestone. This surge has led the company’s market capitalization to soar to an impressive ₹12,800 crore, a figure that speaks volumes about the growing investor confidence in the stock.

Over the last year alone, Transformers and Rectifiers India has recorded an incredible growth of 164%.

While this year-on-year rise in stock price is already substantial, it’s the long-term returns that truly set this company apart.

Its phenomenal gains over five years have left many investors in awe, particularly those who got in early.

A 5-Year Multibagger Story: A 9577% Return

Looking back five years ago, on February 6, 2020, Transformers and Rectifiers India was trading at a modest ₹8.82 per share.

Few could have predicted the meteoric rise that was to follow. If an investor had purchased ₹25,000 worth of shares at that price, their investment would now be worth an astonishing ₹24 lakh, reflecting a jaw-dropping 9577.44% return.

But the potential for exponential growth doesn’t stop there. Here’s how various amounts would have grown if invested five years ago:

• ₹50,000 would have turned into ₹48 lakh
• ₹1 lakh would have become approximately ₹97 lakh
• ₹1.25 lakh would have surpassed the ₹1 crore mark, an incredible increase of over 80 times

This phenomenal growth highlights the stock’s ability to generate massive returns, turning relatively modest investments into life-changing amounts in just half a decade.

Exceptional Returns in 3 and 2 Years: 1873% and 1181% Growth

While the 5-year return is certainly impressive, Transformers and Rectifiers India has also delivered extraordinary gains over shorter time horizons.

In the last three years, the stock has surged by an outstanding 1873.53%, making it a stellar performer over that period as well.

For those who invested ₹50,000 just three years ago, that amount would have ballooned to around ₹10 lakh today. A ₹1 lakh investment would have appreciated to approximately ₹20 lakh, a remarkable feat by any standard.

Moreover, over the past two years, the stock has posted a phenomenal 1181% return, again making it a strong contender for those seeking short-term gains in addition to long-term investment growth.

While the stock has witnessed impressive upward movement over the last few years, it’s important to note that in early 2025, it has become 28% cheaper than its peak, presenting potential opportunities for fresh investments at more attractive prices.

Quarterly Financials: Profit and Revenue Skyrocket

The company’s growth has been bolstered by its solid financial performance, with profits and revenues surging in recent quarters.

For the October-December 2024 quarter, Transformers and Rectifiers India reported a remarkable 253% increase in net profit year-on-year, with profits rising to ₹55.48 crore from ₹15.72 crore in the same period of 2023.

The profit attributable to the company’s owners was ₹54.73 crore, signaling robust earnings.

Revenue from operations also saw an impressive boost, growing by 51% year-on-year, from ₹369.35 crore in the December 2023 quarter to ₹559.36 crore in the same period of 2024.

This remarkable growth can be attributed to a combination of factors, including strong demand for heavy electrical equipment and improved operational efficiencies.

However, while the company’s profit figures have been impressive, it’s worth noting that expenses also increased during this period.

Total expenses rose to ₹494.59 crore, up from ₹350.44 crore in the same quarter last year. Despite the higher costs, the company’s bottom-line performance has been impressive, demonstrating its ability to manage profitability even in the face of rising operational expenses.

A Promising Future: Factors Driving Growth

Several key factors contribute to the continued growth prospects of Transformers and Rectifiers India, making it an attractive pick for investors looking for high-growth opportunities.

The company specializes in manufacturing heavy electrical equipment, a sector that is seeing robust demand as India and other emerging economies continue to expand their power generation and distribution networks.

The demand for transformers, rectifiers, and related products is expected to remain strong due to ongoing infrastructure development, industrialization, and the growing need for power equipment in the renewable energy sector.

As these trends accelerate, Transformers and Rectifiers India is well-positioned to continue benefiting from both domestic and international market expansion.

Investor Sentiment and the Stock’s Future Outlook

The market has responded enthusiastically to the company’s recent performance, with the stock attracting the attention of both institutional and retail investors.

However, like any high-growth stock, there is a level of risk, especially as the stock has become 28% cheaper in early 2025, reflecting a short-term market correction.

Investors must remain vigilant and consider both the company’s strong growth trajectory and any potential risks in the broader market environment.

In addition, the company’s strong profit growth, positive revenue trends, and strategic positioning in the heavy electrical equipment sector suggest that it could continue to reward investors in the coming years.

While short-term fluctuations are to be expected, long-term investors who can weather volatility may find Transformers and Rectifiers India to be an attractive growth stock.

Final Remarks: A Multibagger for the Ages

Transformers and Rectifiers India has firmly established itself as one of the most impressive multibagger stocks of the last five years.

With staggering returns of 9577% over the past five years, 1873% over the last three years, and 1181% over just two years, it has transformed small investments into massive fortunes.

The company’s strong quarterly results, driven by a significant rise in profits and revenues, further enhance its appeal as a stock with high growth potential.

For those seeking an opportunity in the burgeoning heavy electrical equipment sector, Transformers and Rectifiers India represents a stock that has not only demonstrated past success but also holds the promise of continued growth.

Whether you are a seasoned investor or just starting your investment journey, this stock presents a unique opportunity to benefit from long-term growth and potentially earn substantial returns.