1:1 Bonus Share & Rs 3,686 Crore Order Book: Transformers Company Bags New Order Worth Rs 362,00,00,000 From Various Clients Across India

The stock gave multibagger returns of 155 per cent in just 1 year, 2,375 per cent in 3 years and a whopping 9,400 per cent in 5 years.

Transformers & Rectifiers India Limited has secured orders worth Rs 362 crore from various entities including Power Grid Corporation of India Limited, Megha Engineering & Infrastructures Limited, KEC International Limited, Avaada Electro Private Limited, Adani Energy Solution Limited, Torrent Power Limited, and Rajasthan Rajya Vidyut Prasaran Nigam Limited. These orders primarily involve the supply of EHV Power Transformers. The delivery of these transformers is expected to be completed within the next financial year. Importantly, neither the promoter, promoter group nor any group companies have any interest in the entities that awarded these orders.

About the Company

Transformers & Rectifiers India Limited manufactures a wide range of transformers. The company's products include power generation, transmission, and distribution transformers. The company has a market cap of over Rs 17,000 crore and has delivered good profit growth of 57.2 per cent CAGR over the last 5 years. As of December 31, 2024, the company has an order book of Rs 3,686 crore, Order Inflow Q3FY25 is Rs 631 crore and Inquires under Negotiation are worth Rs 19,000 crore.

According to Quarterly Results, the net sales increased by 51 per cent to Rs 559.36 crore and net profit increased by 252 per cent to Rs 55.52 crore in Q3FY25 compared to Q3FY24. In its half-yearly results, the net sales increased by 72 per cent to Rs 1,342.90 crore and net profit increased by 2,126 per cent to Rs 122.41 crore in 9MFY25 compared to 9MFY24. The company reported net sales of Rs 1,291 crore and net profit of Rs 47 crore in FY24.

The Company proposes to issue bonus Equity Shares to its shareholders in the proportion of 1:1, i.e., one bonus equity share of Re 1 for every one existing equity share of Re 1 fully paid-up, held as on the record date, subject to shareholder approval. This would increase the paid-up equity share capital from 15,00,82,917 shares to 30,01,65,834 shares, aggregating to Rs 30,01,65,834. The actual number of bonus shares issued will be determined based on the fully paid-up equity shares held by shareholders on the record date.

On Wednesday, shares of Transformers & Rectifiers India Limited hit a 5 per cent upper circuit to Rs 898.95 per share from its previous closing of Rs 856.15 per share. The stock gave multibagger returns of 155 per cent in just 1 year, 2,375 per cent in 3 years and a whopping 9,400 per cent in 5 years. Investors should keep an eye on this small-cap stock under their watchlist. 

Disclaimer: The article is for informational purposes only and not investment advice.