Transrail Lighting Ltd: A Transmission Stock with a Massive Order Book Surpassing Market Cap
Transrail Lighting Ltd : The power transmission sector plays a crucial role in delivering electricity from generating stations to end consumers. With India’s National Electricity Plan targeting significant infrastructure expansion, the transmission sector is poised for robust growth. A standout player in this space is Transrail Lighting Ltd, a stock worth adding to your watchlist. The company boasts an order book that is more than twice its market capitalization, making it a compelling investment opportunity.
Let’s dive deeper into the company’s performance, financials, and why it deserves attention.
Why Transmission Sector is Poised for Growth
The National Electricity Plan aims to strengthen India’s transmission infrastructure significantly by 2031-32. The plan includes:
- 1,91,000 ckm of transmission lines
- 1,270 GVA of transformation capacity
- 33 GW of HVDC bi-pole links
- Inter-regional transmission capacity increase from 119 GW to 168 GW
With such large-scale expansion, companies operating in the transmission & distribution (T&D) segment are expected to see strong growth, and Transrail Lighting Ltd is one of the key beneficiaries.
Stock Price Action: Strong Momentum
Transrail Lighting Ltd’s stock has witnessed strong price action recently. On Friday, the stock surged by 7.5% intraday, touching a high of ₹524.7. It ended the day at ₹516.4, up 5.8% from the previous close of ₹488.
The stock is currently trading near its 52-week low of ₹465, offering investors an opportunity to accumulate at attractive levels.
Robust Order Book & Strong Growth Prospects
Transrail Lighting Ltd has an impressive order book of ₹15,643 crore, which is more than twice its market capitalization of ₹6,942 crore. Here’s a breakdown of its order inflow and composition:
- 49% Domestic & 51% International Orders
- Transmission & Distribution segment accounts for 90% of the total order book
- YTD order inflows have crossed ₹7,400 crore, marking a 90% YoY growth
Recently, the company secured a major ₹2,752 crore order in the power transmission sector, further strengthening its future revenue pipeline.
Capex Plans: Investing for Future Growth
To meet growing demand and expand operations, the company has approved a ₹327 crore capital expenditure plan over the next 18-24 months:
- ₹125 crore for factory expansion
- ₹115 crore for a new tower manufacturing unit
- ₹80 crore for project execution, tools, and equipment
- ₹90 crore from IPO funds for plant expansion
This strategic investment will help the company scale operations and improve efficiency, further boosting profitability.
Key Business Highlights
- Awarded 800kV HVDC Khavda-Nagpur Transmission Line Package
- Secured its first solar EPC order for an 80 MW DC project in the international market
- Bagged a 400kV DC transmission line contract in Nepal
- Successfully commissioned India’s highest natural draft cooling tower in Telangana
These developments showcase Transrail’s strong execution capabilities and its leadership position in the industry.
Financial Performance: Strong Growth Across Metrics
Transrail Lighting Ltd has reported stellar growth in its financial performance for Q3FY25:
| Metric | Q3FY24 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹837.31 Cr | ₹1,357.56 Cr | +62% |
| PAT (Net Profit) | ₹48.59 Cr | ₹93.24 Cr | +92% |
| EBITDA | ₹99.9 Cr | ₹179.8 Cr | +80% |
Such strong financials indicate robust demand for Transrail’s services and efficient execution of projects.
Stock Fundamentals & Key Ratios
Here are some of the key fundamental ratios of Transrail Lighting Ltd:
| Metric | Value |
|---|---|
| Market Cap | ₹6,942 Cr |
| Current Price | ₹517 |
| 52-Week High / Low | ₹719 / ₹465 |
| Stock P/E | 30.2 |
| Book Value | ₹95.9 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 35.0% |
| ROE (Return on Equity) | 24.1% |
| Debt to Equity | 0.55 |
| P/E Ratio | 30.2 |
| Pledged Shares | 0.00% |
| Quarterly Profit Growth (QoQ) | +69.2% |
| Intrinsic Value | ₹386 |
| RSI (Relative Strength Index) | 44.6 |
| EPS (Earnings Per Share) | ₹18.8 |
| Free Cash Flow (3Yrs) | ₹73.4 Cr |
| Debt | ₹704 Cr |
What Makes Transrail an Attractive Investment?
- Order Book Strength: ₹15,643 crore order book, over twice the market cap
- Strong Financial Performance: 92% YoY profit growth
- Industry Tailwinds: Huge growth in India’s power transmission sector
- Global Presence: Operating in 58 countries with large multilateral funding support
- Low Debt Levels: Debt to Equity at 0.55, indicating a healthy balance sheet
Final Thoughts: A Must-Watch Transmission Stock
With India’s massive infrastructure push in the power sector, Transrail Lighting Ltd is in a sweet spot for growth. A strong order book, healthy financials, and strategic expansion plans make it a potential multibagger stock in the coming years.
For investors looking to ride the transmission sector boom, Transrail Lighting Ltd is a stock to watch out for!
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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.