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Shares of this transformer company zoomed 15 per cent in a single trading session; do you hold it?
Tushar Jain
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Shares of this transformer company zoomed 15 per cent in a single trading session; do you hold it?

Shares of the company skyrocketed up to Rs 51.4, an increase of almost 15 per cent.

Shares of Transformers and Rectifiers India Ltd opened the day at Rs 45.95 and reached a high of Rs 52.85. The stock price has increased by 15 per cent so far today. The 52-week high for the company is Rs 52.85, and the 52-week low is Rs 25. Today on the BSE, the stock saw a surge in volumes that were about 2.59 times.

Transformers and Rectifiers (India) Ltd is in the business of producing power, furnace, and rectifier transformers. The total installed capacity of the company's three units in the state of Gujarat is 33,200 megavolt ampere (MVA). These plants are located in the cities of Odhav (1,200 MVA), Changodar (12,000 MVA), and Moraiya (20,000 MVA). TRIL can be found in all classes and sizes of transformers, ranging from power transformers with ratings of up to 500 MVA and 1150 KV to distribution transformers with ratings of up to 5 MVA and 33 KV. 

The company has a technological partnership with Zaporozhtransformator (ZTR), located in Ukraine, for the production of 765 kilovolts (KV) class transformers. It also has a partnership with Fuji Electrical Co Ltd (Fuji), located in Japan, for the production of 420 KV class transformers and up to 765 KV class shunt reactors. Finally, it has a partnership with Jiangsu Jingke Smart Electrical Co Ltd for production.

The top line of the company is expanding at a compound annual growth rate of 11 per cent over the past three years. It reported a revenue of Rs 1225 crore for the trailing twelve-month period. Additionally, the TTM operating profit margin has improved from 6.1 per cent to 6.4 per cent. During FY 22 of the corporation, the cost of the raw materials was equal to 84 per cent of the entire sales. The revenue for the FYQ1 increased by 30.0 per cent on a year-over-year basis, coming in at Rs 282 crore. From the previous quarter's operating profit margin of 4.8 per cent, the margin for the most recent quarter came at 8.1 per cent. Because of this, the net profit for the year increased by 126 per cent quarter over quarter, and by 1638 per cent quarter over quarter sequentially. 

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