Transformers and Rectifiers India Soars 10% on Healthy Growth Outlook

Shares of Transformer and Rectifier India (TRIL) touched a multi-year high of Rs 70.75 in intraday trade on Wednesday, rising 10% on the BSE on heavy volume on healthy growth prospects. The stock is trading at its highest level since 2008. It hit an all-time high of Rs 91 on January 1, 2008.

At 10:10 am, TRIL was quoted 9.5% higher at Rs 70.15, while the S&P BSE Sensex gained 0.16%. The average off-exchange volume on the NSE and BSE more than doubled to 2.6 million shares or 2% of the total share capital.

TRIL is a leading manufacturer of transformers up to 1200 kV class. TRIL has a wide range of transformers, such as distribution, furnace, rectifier, and speciality transformers. It has robust in-house design and technical expertise combined with technology partnership/joint venture relationships for 765 kV transformers and reactors.

The stock has surged 25% over the past week, outperforming the broader market, while the S&P BSE Sensex fell 1.8%. The company's market price has more than doubled, or 126%, over the past six months, compared with the benchmark index's 11% gain.

"Changes in the company's share price depend on market conditions, and the company's management has nothing to do with any such share price movement," TRIL said Tuesday, clarifying material changes in the company's security price.

Meanwhile, on December 29, 2022, TRIL informed that the company had secured an order for transformers with a total contract value of Rs 123 crore from a major utility company.

The above order is in the ordinary course of business. The company is not interested in these order-granting units, nor is it a related party transaction. With the new orders, TRIL said the company's orders stand at Rs 1,513 crore.

The company has been involved in tendering processes of more than Rs 9,000 crore for state utilities, central utilities, EPC, private, TBCB tenders, etc.

For FY22, TRIL posted a PAT of Rs 14.25 crore, a revenue of Rs 1,161 crore and an Ebitda of Rs 83.88 crore.