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Business News/ Markets / Stock Markets/  Transformers & Rectifiers stock hits 5% upper circuit on 161 crore order win

Transformers & Rectifiers stock hits 5% upper circuit on ₹161 crore order win

Transformers & Rectifiers India (TRIL) shares hit 5% upper circuit limit at ₹620 apiece after significant order win of ₹161 crore.

Transformers & Rectifiers: The shares have delivered a multibagger return of 167% in less than five months. (Pixabay)Premium
Transformers & Rectifiers: The shares have delivered a multibagger return of 167% in less than five months. (Pixabay)

Snapping a five-day losing streak, shares of Transformers & Rectifiers India (TRIL), a leading transformer manufacturer, hit the 5% upper circuit limit today, reaching 620 apiece following a significant order win.

In an exchange filing on Thursday, the company announced that it received an export order from AL Anwaar International for a "T&R" MAKE 90 MVA, 132/33 KV Transformer with fittings and accessories, worth 161 crore.

In February, the company secured an order worth 232 crore from the Power Grid Corporation of India. Over recent months, TRIL has received multiple orders, bringing its unexecuted order book to 44,594 MVA valued at 2,581 crore as of March 31, according to the company's Q4 earnings report. 

Also Read: Multibaggers: 3 shipbuilding stocks including Cochin Shipyard gained between 200% and 725% in a year

The transformer industry is currently experiencing a surge in orders, with a particularly optimistic demand outlook in sectors such as railways, renewables, green energy, and power. 

The Central Electricity Authority (CEA) estimates a total investment of 7.42 lakh crore from 2022 to 2030 for upgrading distribution infrastructure.

Beyond the CEA's distribution plan, various other factors are anticipated to significantly contribute to the transformer sector's demand until 2030. The Indian transformer market is expected to grow at a CAGR of 12–14%.

Positioned strategically within these industry dynamics, the company said it aims to capitalise on forthcoming growth opportunities in the Transmission & Distribution (T&D) sector, strengthening its market position year on year.

In Q4FY24, the company reported a 306% surge in its consolidated net profit, reaching 35.95 crore, while its revenue from operations increased to 500 crore, up from 425 crore in the same period last year.

For the entire fiscal year, net profit rose by 16% YoY to 56.09 crore, although revenue from operations decreased to 1,291 crore, compared to 1,396 crore in FY23.

Also Read: Nifty 50 tops 23k mark; can Indian stock market sustain gains?

Meanwhile, the shares have delivered a multibagger return of 167% in less than five months, climbing from 235 to 620 apiece. Over the previous calendar year, the stock achieved a return of 315%. In terms of long-term performance, the shares have generated an astounding return of nearly 5448% over the past five years. 

Also Read: Multibagger: HBL Power Systems stock soared 1254% in 3 years, jumped over 5360% in a decade

Transformers & Rectifiers is engaged in the business of manufacturing and selling various kinds of transformers, such as power and distribution transformers, furnace transformers, rectifier transformers, and specialised transformers.


Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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Published: 24 May 2024, 03:00 PM IST
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