Transformer stock jumps 5% after receiving ₹565 Cr order from Power Grid - Trade Brains

by Trade Brains | Oct 3, 2024 | 12:18 pm | News, Trending News | 0 comments

Transformer stock engaged in designing and manufacturing the entire range of transformers jumped upto 5 percent in the day’s trade upon receiving a new work order worth Rs. 565 Crores from Power Grid Corporation of India Limited.

With a market capitalization of Rs. 10,055 Crores, the shares of Transformers & Rectifiers (India) Limited were trading at Rs. 671 per equity share, up 3 percent from its previous day’s close price of Rs. 651.75. It has delivered a return of 310 percent in a year.

Transformers & Rectifiers (India) Limited engaged in designing and manufacturing entire range of transformers has received a new work order from Power Grid Corporation of India Limited for a consideration of Rs. 565 Crores.

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The said work order is for the Manufacturing and supplying of Transformers and Reactors with range of 80 MVAr to 500 MVA and 420kV to 765 kV Class and the order is to be delivered by 2025-2026.

Transformers & Rectifiers (India) Limited is engaged in designing and manufacturing the entire range of transformers viz Power, Distribution, Furnace, Rectifier Transformers & Shunt Reactors for both domestic and international markets.

It caters to various industries like Power Transmission, Distribution, Petrochemicals, Pharmaceutical, Cement, Mining, Railways, Green Energy, Paper & Pulp, Metal Processing and many more.

As of Q1FY25, Transformers & Rectifiers (India) Limited has an unexecuted order book worth Rs. 2,926 Crores and has Inquiries under negotiations worth Rs. 17,500 Crores.

It has a strong customer base with well-known players like Adani Renewables, Tata Power, KEC International, JSW, PowerGrid, Jindal Steel & Power, NTPC, Siemens Energy, Torrent Power, and many More.

The product-wise order book breakup as of Q1FY25 consists of Power Transformers 64.79 percent, Reactors 27.55 percent, Furnace Transformers 2.09 percent, Distribution Transformers 3.78 percent, Rectifier Transformers 0.88 percent, and others 0.87 percent

Its revenue from operations grew by 107 percent from Rs. 156 Crores in Q1FY24 to Rs. 322 Crores in Q1FY25, accompanied by a loss of Rs. 12 Crores to a profit of Rs. 21 Crores.

In terms of Return ratios, it has delivered a return on equity(ROE) of 9.33 percent and a return on capital employed (ROCE) of 14.8 percent. It has maintained a debt-to-equity ratio of 0.46

Written by: Bharath K.S

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