Transformers and Rectifiers India Secures Rs 726 Crore Orders, Shares Surge 4%

Transformers and Rectifiers India Ltd.

Transformers and Rectifiers India Secures ₹726 Crore Orders, Stock Surges 4%

Transformers and Rectifiers India (TRIL), a prominent manufacturer of heavy electrical equipment, has made an important announcement regarding its latest orders.

The company has secured orders worth ₹726 crore from Gujarat Energy Transmission Corporation (GETCO) for the supply of auto transformers and bus reactors.

These orders represent a significant milestone for the company and will be executed over the next 18 months.

The news has had a marked impact on the company’s stock price, which surged during trading, reflecting investor optimism about its future prospects.

Stock Performance: A Roller-Coaster Ride

The stock market response to this development has been overwhelmingly positive, as seen in the sharp rise in the stock price of Transformers and Rectifiers India.

On the morning of the announcement, shares opened at ₹384.25 on the Bombay Stock Exchange (BSE). As trading progressed, the stock experienced a significant surge, peaking at ₹405, marking an impressive 8% jump from its opening price.

However, by the close of trading, the stock had settled at ₹390.20, still reflecting a strong 4% gain for the day.

Despite the fluctuations during the trading session, the market capitalization of Transformers and Rectifiers India reached ₹11,700 crore at the close.

The overall increase of 4% for the day highlights the positive sentiment surrounding the company’s growth potential, largely driven by the substantial order win.

Over the last 12 months, Transformers and Rectifiers India’s stock has experienced remarkable growth, climbing by 135%.

However, the stock has faced a pullback of approximately 34% in 2025 so far, which could reflect broader market conditions or investor caution.

Nevertheless, the company’s performance in securing such a significant order offers optimism for future growth and performance.

A Multibagger Stock: Exponential Returns Over 5 Years

Transformers and Rectifiers India is fast gaining a reputation as a multibagger stock due to its phenomenal performance over the past few years.

Investors who had purchased shares five years ago have seen their investments grow exponentially. As of March 17, 2020, the stock was priced at just ₹3.38, meaning that in the last five years, the company’s share price has increased by a jaw-dropping 11,444%.

This unprecedented growth has turned early investors into significant wealth creators.

The company’s stock has gained momentum, particularly over the past two years, during which its value skyrocketed by around 1,200%.

This meteoric rise reflects both strong fundamentals and market confidence in the company’s ability to secure large orders in the highly competitive electrical equipment industry.

The market performance of Transformers and Rectifiers India highlights a strong track record of delivering value to shareholders, which has further solidified its standing in the stock market.

As of February 17, 2025, the company’s promoters hold a 64.36% stake in the business, demonstrating their commitment to and confidence in the company’s long-term success.

The face value of the stock is ₹1, and the circuit limits on BSE are set at ₹412.20 for the upper circuit and ₹337.30 for the lower circuit, both reflecting a 10% fluctuation limit.

Financial Results: Robust Growth

Beyond the impressive stock performance, Transformers and Rectifiers India has also posted strong financial results in the latest fiscal quarter.

For the October-December 2024 period, the company’s consolidated net profit surged by an impressive 253% year-on-year, reaching ₹55.48 crore compared to ₹15.72 crore in the same quarter the previous year.

This growth underscores the company’s ability to not only secure large contracts but also efficiently manage its operations to deliver superior profitability.

The profit attributable to the company’s owners was recorded at ₹54.73 crore in Q3 FY2024, reflecting substantial growth from the ₹15.48 crore reported in Q3 FY2023.

This performance highlights the company’s ability to expand its bottom line significantly, driven by increased revenues and improved operational efficiency.

In addition to its profit growth, the company’s consolidated revenue from operations for the December 2024 quarter rose by 51% year-on-year, totaling ₹559.36 crore compared to ₹369.35 crore during the same period in 2023.

The increase in revenue is a strong indicator of the growing demand for the company’s products, particularly auto transformers and bus reactors, which are crucial components in the electrical transmission and distribution sector.

However, it is important to note that total expenses also increased, rising to ₹494.59 crore from ₹350.44 crore in the same quarter the previous year.

This increase in costs is largely attributed to the higher scale of operations required to meet growing demand and fulfill the large orders the company has secured.

Despite the rise in expenses, the strong increase in revenue and profit demonstrates the company’s ability to manage its growth efficiently.

Strong Order Book and Future Outlook

The recent ₹726 crore order from Gujarat Energy Transmission Corporation adds a significant amount of revenue visibility for the company over the next 18 months.

Auto transformers and bus reactors are vital for ensuring the efficient transmission and distribution of electrical power, and GETCO’s decision to award this contract is a testament to the company’s technical capabilities and reputation in the industry.

With this order, Transformers and Rectifiers India is set to further strengthen its position in the power and energy sector, particularly in the high-demand areas of power transmission and grid infrastructure.

The company’s ability to secure large-scale orders from major players like GETCO reflects its strategic focus on expanding its footprint in the growing Indian power sector.

Additionally, the company’s impressive financial track record and strong order backlog indicate that its growth trajectory is likely to continue in the coming years.

As power transmission and distribution projects are expected to grow in line with India’s energy needs, Transformers and Rectifiers India is well-positioned to capture a larger share of this lucrative market.

Final Remarks

Transformers and Rectifiers India has demonstrated impressive growth, both in terms of stock price and financial performance.

The company’s recent order win worth ₹726 crore from Gujarat Energy Transmission Corporation adds further strength to its already robust order book.

With its strong market position, high-quality products, and a track record of multibagger returns, the company is poised for continued success in the coming years.

For investors, the stock remains an attractive proposition, especially given its substantial historical returns and continued growth prospects.

As the company moves forward with its ambitious projects, the coming months and years could present more opportunities for growth and market expansion.

The latest developments further affirm that Transformers and Rectifiers India is a company to watch closely in the evolving electrical equipment sector.