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Business News/ Markets / Stock Markets/  Multibagger Transformers and Rectifiers (India) share price hits upper circuit post Q4 results: scales all time high
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Multibagger Transformers and Rectifiers (India) share price hits upper circuit post Q4 results: scales all time high

Stock Market today - Multibagger Transformers and Rectifiers (India) share price were locked in upper circuit post its Q4 performance. The share price also scaled all time highs

Multibagger Transformers and Rectifiers (India) share price hits upper circuit post Q4 results:Premium
Multibagger Transformers and Rectifiers (India) share price hits upper circuit post Q4 results:

Stock Market Today: Transformers and Rectifiers (India) Ltd share price that gained 5% on Wednesday to scale all time highs as it also hit upper circuit limit.

Transformers and Rectifiers (India) share price has gained more than 600% in last one year to give multibagger returns to investors 

A strong performance during the March'2024 quarter further boosted investor confidence.

Transformers and Rectifiers total income from operations at consolidated level rose 18% year on year and around 38% sequentially to 514 Crore. 

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The reported net profits at 41.93 Crore for Transformers and Rectifiers India, grew more than 4 folds from 9.66 crore in the year ago quarter

As per analysts the adjusted net profit stood at 39.9 Crore that grew 342.7% year-on-year and 156% sequentially.

The strong gains in net profit for Transformers and Rectifiers India has been fueled by strong improvement in the net profits.

 Analysts attributed Transformers & Rectifiers India  3.5 times  year-over-year rise in net profits to an strong 18% year on year increase in revenue and a 640 basis points year-on-year increase in Ebitda margins to 14%. Notably Ebitda margins in Q3 Fy24 stood at 10.4%.

Ebitda stands for Earnings before interest, tax, deprecation and amortisation . Also 100 basis points (bps) make 1%.

The healthy order book of Transformers and Rectifiers India keep analysts positive on the forward prospects of the stock as analysts also say that order mix is also leading to improvement in margins. The strong order book adds to good revenue visibility too.

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Analysts at Nuvama Institutional Equities in the post result review said that “With a strong backlog of 2580 Crore to be executed over 15 months) and an order pipeline of 17000 Crore-plus (with 20% strike rate), management is guiding for FY25 revenue of  more than 2000 Crore and operating margins of 12.5–13%"

Analysts at Nuvama Institutional Equities estimate Transformers and Rectifiers India to clock a 99%-plus earnings per share compounded annual growth over FY24–27 as Transformers and Rectifiers India  is one of the few suppliers of High Voltage transformers in India.

They are factoring in a 25% new orders compound annual growth rate  (CAGR) over FY24–27 in their estimates and operating margins of  14–15%.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

 

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ABOUT THE AUTHOR
Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 10 Apr 2024, 03:20 PM IST
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