Transformers and Rectifiers hits 4th straight upper circuit; here's why

Shares of Transformers and Rectifiers hit another 5 per cent upper circuit on Friday, locking at Rs 778.05 per share. The stock has constantly hit the 5 per cent upper band in the last four trading sessions, zooming 20 per cent. This started after the company announced its financial results on October 8, 2024. 

Transformers and Rectifiers (India) Ltd reported a significant year-on-year (YoY) rise in net profit, with an increase of 2,731 per cent to Rs 45.3 crore for the second quarter ending on September 30, 2024. In the same quarter of the previous fiscal, the company had posted a net profit of Rs 1.6 crore.

Revenue from operations surged 79.4 per cent to Rs 461 crore, compared to Rs 257 crore in the corresponding quarter of the previous fiscal. The company also saw a rise in other income, which stood at Rs 11.8 crore, up from Rs 1.1 crore in the same period last year.

At the operating level, earnings before interest, tax, depreciation, and amortisation (Ebitda) for the second quarter amounted to Rs 68 crore, up from Rs 19 crore in the same period last fiscal. The Ebitda margin improved to 14.8 per cent in the reporting quarter, compared to 7.4 per cent in the corresponding period of the previous year.

During the quarter, Transformers and Rectifiers (India) secured new orders worth Rs 1,031 crore. Among the notable orders, Power Grid awarded the company a contract for a 420kV three-phase reactor using synthetic organic ester insulating fluid, a specialised product for advanced electrical insulation. Additionally, the company received an order from Arcelor Mittal Mexico for a 175 MVA Electric Arc Furnace (EAF) transformer.

Transformers and Rectifiers share price history

Transformers and Rectifiers share price has outperformed the market as it has risen 226 per cent year to date, while gaining 361.3 per cent in the last one year. In comparison BSE Sensex has risen 12.5 per cent year to date and 22.4 per cent in a year. 

The company has a total market capitalisation of Rs 11,677.20 crore. Its shares are trading at a price to earnings multiple of 101.54 times at an earning per share of Rs 7.30.