Transrail Lighting’s shares surged by 7% following CRISIL’s upgrade of its long-term rating
Shares of Transrail Lighting were highly sought after on Thursday following the company’s credit rating upgrade from CRISIL. The share price of Transrail Lighting surged by 7.5% to Rs 713.55 per share on the BSE during Thursday’s intraday trading.
CRISIL Ratings, a domestic credit rating agency, raised Transrail Lighting’s rating on long-term bank facilities to ‘CRISIL A+/Stable’ from ‘CRISIL A/Positive’ and reaffirmed its ‘CRISIL A1’ rating on short-term bank facilities.
The upgrade in the long-term rating reflects the company’s improving business risk profile due to its expanding scale of operations, strong order book, and healthy operating profitability. CRISIL stated that Transrail’s revenue is projected to grow by over 20% in fiscal 2025, driven by robust execution of the order book, which stood at Rs 10,213 crore as of June 30, 2024. Additionally, the company has secured the lowest bidder (L1) status for several orders, ensuring a healthy revenue outlook in the medium term.
Furthermore, Transrail’s Earnings before interest, tax, depreciation, and amortization (EBITDA) are expected to remain strong in the medium term. The company’s business risk profile will benefit from its advanced technological capabilities, expanding market presence, established clientele, and promising prospects in both international and domestic transmission and distribution (T&D) as well as domestic non-T&D business, according to CRISIL.
Furthermore, the rating agency highlighted that the recently completed initial public offering (IPO) in December 2024, which raised Rs 400 crore, along with a pre-IPO of Rs 50 crore in September 2024, will strengthen Transrail’s financial risk profile and enhance key debt metrics. Transrail Lighting currently boasts a total market capitalization of Rs 9,210.63 crore. As of 11:25 AM, the company’s stock price was trading 3.3% higher at Rs 686.05 on the BSE, while the BSE’s Sensex was down 0.51% at 77,747.67.
Transrail is a leading EPC company that has been providing turnkey solutions globally for over 38 years in areas such as Transmission, Distribution, Substations, Rural Electrification, and Railways. They specialize in outdoor lighting solutions and have established themselves as a key player in the industry.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
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.