Transformers and Rectifiers India Ltd Announces 1:1 Bonus Issue; Stock Rallies 4%
Transformers and Rectifiers: The Indian Heavy Electrical Equipment industry is witnessing a significant transformation, and Transformers & Rectifiers India Ltd (TRIL) is at the forefront of this growth. The company’s stock surged 4% to ₹852.25 per share after announcing a 1:1 bonus share issue, rewarding its shareholders and reinforcing investor confidence.
Bonus Issue Details
The board of TRIL has approved the issuance of bonus shares in a 1:1 ratio, meaning shareholders holding one equity share with a face value of ₹1 will receive an additional share of the same face value. The record date for the bonus issue has been set for February 14, 2025.
This move is expected to improve liquidity, attract new investors, and further strengthen the company’s stock performance in the long run.
Stock Price Movement
Following the announcement, TRIL’s stock saw a sharp uptick, reflecting strong investor sentiment. With a market capitalization of ₹12,800.57 crore, the stock rose 4% from its previous close of ₹822.60, reaching ₹852.25 per share.
Financial Performance: A Strong Q3FY25
TRIL has demonstrated robust financial growth, backed by a significant increase in revenue and profitability:
| Metric | Q3FY25 Figures | YoY Growth |
|---|---|---|
| Revenue | ₹545 crore | 49% ↑ |
| EBITDA | ₹87 crore | 136% ↑ |
| EBITDA Margin | 15.69% | – |
| PAT (Profit After Tax) | ₹50 crore | 276% ↑ |
| PAT Margin | 9.12% | – |
This remarkable performance is driven by higher order execution, improved operational efficiency, and cost optimization strategies.
Robust Order Book & Strategic Shift
TRIL has maintained a healthy order book, positioning itself for continued growth:
- Unexecuted orders as of December 31, 2024: ₹3,686 crore
- Inquiries under negotiation/bidding: ₹19,000 crore
- New orders in Q3FY25: ₹631 crore (vs. ₹1,000+ crore in Q2FY25)
The decline in new orders is intentional, as the company is shifting towards high-margin projects with better payment terms, ensuring long-term profitability and stability.
Strategic Developments & Expansion Plans
TRIL has taken several strategic steps to enhance efficiency, reduce costs, and expand capacity:
✅ 100% backward integration: Acquisition of a CRGO processing unit, reducing raw material costs by 4%
✅ Technology partnerships: Three new technological tie-ups to boost capabilities
✅ PGCIL approval progress: Successfully completed a 500 MVA short-circuit test, a key milestone
✅ Capacity Expansion: Increasing production capacity to 15,000 MVA, with completion expected by Feb-Mar 2025
✅ Revenue Target: Aims to achieve ₹3,500 crore in FY25 and reach $1 billion in revenue within 3-4 years
These strategic moves reflect the company’s commitment to innovation, cost efficiency, and sustainable growth.
Industry Outlook & Market Position
India’s Heavy Electrical Equipment sector is poised for rapid growth, driven by infrastructure development and increased power capacity addition. The Indian electrical equipment market is projected to grow by $76.24 billion between 2024 and 2028, at a CAGR of 14.3%.
TRIL, with its strong market presence, technological advancements, and strategic expansion, is well-positioned to benefit from this growth. The management remains optimistic, focusing on high-yield projects and profitability sustainability.
Company Profile & Financial Ratios
Transformers & Rectifiers India Ltd specializes in manufacturing power, furnace, and rectifier transformers, catering to both domestic and international markets.
| Metric | Value |
|---|---|
| Market Cap | ₹12,738 Cr. |
| Current Price | ₹848 |
| 52-Week High/Low | ₹1,300 / 302 |
| Stock P/E | 79.6 |
| Book Value | ₹73.5 |
| Dividend Yield | 0.01% |
| ROCE (Return on Capital Employed) | 14.8% |
| ROE (Return on Equity) | 9.33% |
| Debt to Equity Ratio | 0.22 |
| Industry P/E | 49.6 |
| Total Debt | ₹244 Cr. |
| PEG Ratio | 1.39 |
| Intrinsic Value | ₹99.9 |
| Graham Number | ₹134 |
| Piotroski Score | 6.00 |
| Price to Book Value | 11.5 |
| Return on Invested Capital (ROIC) | 10.6% |
Conclusion: A Promising Future for TRIL
With a strong financial performance, strategic expansions, and a 1:1 bonus share issue, TRIL is making significant strides in the industry. The company’s long-term vision of reaching $1 billion in revenue and its focus on high-margin projects position it as a key player in India’s growing energy sector.
Investors are optimistic about TRIL’s growth trajectory, making it a stock to watch in the coming years.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.