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Shares of the small-cap company Transformers & Rectifiers India Ltd locked in a 5 percent upper circuit in Friday’s trading session after securing multiple domestic and export orders worth Rs. 359 crores. Over the past year, the stock has delivered a massive 697 percent return to shareholders.
With a market capitalization of Rs. 8,833 crores, Transformers & Rectifiers’ shares began Friday’s trading session on a high note at Rs. 614.50, hitting the 5 percent upper circuit compared to the previous close of Rs. 589.20 apiece. This bullish movement followed the company’s announcement in an exchange filing about receiving three significant orders worth Rs. 359 crores. Among these, an export order from AL Anwaar International for transformers worth Rs. 161 crores stood out, along with a domestic order from the Adani Group for Rs. 179 crores and another from L&T Group for Rs. 19 crores.
The Adani Group order includes the design, engineering, manufacture, and testing of 6 units of 500 MVA 400 kV transformers, 3 units of 125 MVAR 400 kV reactors, and 16 unit transformers, all to be completed within 18 months from the notification of the award. The L&T Group order involves the design, engineering, manufacturing, and testing of one 250MVA transformer, with the project expected to be completed within 15 months from the notification of the award.
Financially, Transformers & Rectifiers reported a 39 percent revenue increase from Rs. 369.35 crores in the December quarter to Rs. 512.7 crores in the March quarter. Net profits soared by 165 percent, from Rs. 15.72 crores to Rs. 41.62 crores during the same period. Over the year, the company recorded its highest-ever order inflow of Rs. 2,050 crores, including 11 percent from export orders. As of March 31st, 2024, it had an unexecuted order book of Rs. 2,582 crores.
The product-wise order book for FY24 includes Power Transformers (66 percent), Reactors (29 percent), Furnace Transformers (3 percent), Distribution Transformers (2 percent), and Rectifier Transformers (1 percent). The company’s robust customer base features prominent names like Adani Renewables, Tata Power, KEC International, JSW, PowerGrid, Jindal Steel & Power, NTPC, and Torrent Power.
Transformers & Rectifiers aims to increase its export share from the current 11 percent to 15 percent in the near term, targeting 20-25 percent by FY27. Additionally, it plans for capacity expansion and backward integration to enhance operational excellence.
Founded in 1994 and headquartered in Gujarat, Transformers & Rectifiers specializes in designing and manufacturing a comprehensive range of transformers for both domestic and international markets, including Power, Distribution, Furnace, Rectifier Transformers, and Shunt Reactors. The recent surge in its share price reflects strong market confidence, driven by significant business finance developments and strategic growth plans in the stock market.
