Transformers & Rectifiers Stock Skyrockets 5% on Strong Q2 Performance, Surges 237% in 2024

Shares of Transformers & Rectifiers India (TRIL), a major transformer manufacturer, hit the 5% upper circuit at ₹720 per share on Friday, October 11, continuing their upward momentum for the fourth day in a row.

This surge in the company’s stock price is driven by strong quarterly results and a series of new orders. In the second quarter of FY25, TRIL reported a huge 1,274% increase in standalone net profit, reaching ₹42.18 crore, compared to just ₹3.07 crore in the same quarter last year. The company’s revenue from operations rose 75% year-on-year (YoY) to ₹445.93 crore, and its EBITDA jumped 260% YoY to ₹42.42 crore.

New Orders and Expanding Order Book

In the same quarter, TRIL secured ₹1,031 crore worth of new orders, bringing its total order book to ₹3,500 crore by the end of September 2024. Some of the major orders include a contract for a 420 kV three-phase reactor from Power Grid and a 175 MVA transformer for ArcelorMittal. The company also announced that it is in talks for additional orders worth ₹18,500 crore, as mentioned in its Q2FY25 investor presentation.

In October, TRIL received a ₹565 crore order from Power Grid Corporation for the supply of transformers and reactors. The company also secured deals in September from Rajasthan Rajya Vidyut Prasaran Nigam and SPIL, along with a $14 million order from Linxon Global Sweden in August.

Strong Industry Growth

The transformer industry is seeing a rise in demand, particularly from sectors like railways, renewable energy, and power distribution. The Central Electricity Authority (CEA) expects an investment of ₹7.42 lakh crore by 2030 to upgrade India’s power distribution network. This demand is likely to boost the transformer market, which is projected to grow at a CAGR of 12–14% until 2030.

TRIL is positioned well to benefit from this growth in the Transmission & Distribution (T&D) sector, with plans to strengthen its market presence in the coming years.

Impressive Stock Performance

TRIL’s stock has been on a steady upward trend since July 2022, with no significant corrections. During this time, the stock has risen from ₹29.25 to ₹780, delivering a massive 2,566% return to investors. In 2024 alone, the stock is up 237%, contributing to a total rise of 314% for calendar year 2023.

The company has consistently provided strong returns to its shareholders, earning the status of a “multibagger” stock. Over the past five years, TRIL has delivered high returns in three of those years, and the trend of impressive performance continues.

Company Background

Transformers & Rectifiers India (TRIL) manufactures and sells various types of transformers, including power, distribution, furnace, and specialised transformers. The company has been a key player in the transformer industry, positioning itself as a leader in this growing sector.