There is a lot of movement in the stock market. In this, selected shares are in focus. Shares of Transformers and Rectifiers (India) Ltd (NSE: TRIL), a company in the electric equipment sector, are also in focus.
Domestic brokerage firm has given an upside target of 68 percent with a buy opinion on the stock.
The triggers for the rise in the stock have also been mentioned. However, today (March 12) the stock has hit a lower circuit of 5 percent.
Why is TRIL Stock Under Watch?
TRIL share is likely to rise in T&D capex due to increasing manufacturing, power demand, electrification, and green transition.
Under this, there will be a potential capex of Rs 2.4 lakh crore in the next 3 to 4 years. There may be a capex of Rs 36000 crore in transformer.
The special thing is that a good increase in the demand for high voltage (HV) transformers is expected.
Expected Growth In New Orders
Only 6 to 7 HV transformer suppliers are in India.TRIL is a leading supplier in this.
Let us tell you that HV transformer is a high entry barrier business. 70% of the company’s total sales come from HV transformers.
Talking about valuation, it is set to achieve an EPS CAGR of more than 85% in FY24-27E.
Also, orders worth Rs 2572 crore will be booked, which will be almost double the income in FY23.
According to the brokerage report, new order growth of 25-30% is expected every year.
Brokerage Strategy On Shares
TRIL shares closed at Rs 331 on March 12, which was trading at the lower circuit on Tuesday at Rs 307.85. A brokerage has initiated coverage of the stock, with a Buy rating.
The share has been given an upside target of Rs 575, which is 68 percent above the current price.
Brokerage has given an upside target of Rs 702 on the share in a bull case.
About Transformers and Rectifiers India Ltd
Transformers and Rectifiers Limited, a company based in India, manufactures power transformers, rectifiers, and furnace transformers.
The Company manufactures a variety of transformers for both the domestic market and the international one.
The Company provides a wide range of power converters, ranging from low voltage (5 MVA) up to high voltage (1200 KV AC), and from small to large power ratings (500MVA).
The Company’s product range of rectifier transformers includes instrument transformers and bushing current transformers.
The distribution transformer range includes 250 kilovolt amperes (kVA), 4000 kVA, and 11 to 33kV.
Furnace Transformers include electric arc transformers, submerged furnace transformers, and ladle refinery furnace transformers.
Fundamental Analysis of Transformers and Rectifiers India Ltd
| Market Cap | ₹ 4,853 Cr. |
| Current Price | ₹ 331 |
| 52-wk High | ₹ 397 |
| 52-wk Low | ₹52.2 |
| Stock P/E | 347 |
| Book Value | ₹ 26.7 |
| Dividend | 0.04 % |
| ROCE | 14.8 % |
| ROE | 10.8 % |
| Face Value | ₹ 1.00 |
| P/B Value | 12.6 |
| OPM | 7.79 % |
| EPS | ₹ 0.94 |
| Debt | ₹ 383 Cr. |
| Debt to Equity | 1.01 |
Transformers and Rectifiers India Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹340 | ₹376 |
| 2025 | ₹380 | ₹398 |
| 2026 | ₹405 | ₹432 |
| 2027 | ₹437 | ₹459 |
| 2028 | ₹465 | ₹480 |
| 2029 | ₹500 | ₹576 |
| 2030 | ₹600 | ₹634 |
Transformers and Rectifiers India Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 74.91% |
| Mar 2023 | 74.91% |
| June 2023 | 74.91% |
| Sept 2023 | 74.91% |
| Dec 2023 | 69.65% |
| FII Holding | |
| Dec 2022 | 0.00% |
| Mar 2023 | 0.02% |
| June 2023 | 0.03% |
| Sept 2023 | 0.56% |
| Dec 2023 | 3.48% |
| Public Holding | |
| Dec 2022 | 25.09% |
| Mar 2023 | 25.07% |
| June 2023 | 25.07% |
| Sept 2023 | 24.53% |
| Dec 2023 | 26.87% |
Transformers and Rectifiers India Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹855 Cr |
| 2020 | ₹701 Cr |
| 2021 | ₹742 Cr |
| 2022 | ₹1,158 Cr |
| 2023 | ₹1,220 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹5 Cr |
| 2020 | ₹1 Cr |
| 2021 | ₹8 Cr |
| 2022 | ₹14 Cr |
| 2023 | ₹15 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.72 |
| 2020 | 0.87 |
| 2021 | 0.72 |
| 2022 | 0.91 |
| 2023 | 0.84 |
Last 10 Years’ Profit Growth:
| 10 Years: | 24% |
| 5 Years: | 50% |
| 3 Years: | 367% |
| Current Year: | -56% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 3% |
| 5 Years: | 4% |
| 3 Years: | 6% |
| Last Year: | 11% |
Sales Growth Over 10 Years:
| 10 Years: | 10% |
| 5 Years: | 14% |
| 3 Years: | 25% |
| Current Year: | -6% |
Conclusion
This article is a complete guide about Transformers and Rectifiers India Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.
