Transformers & Rectifiers hits 5% upper circuit in weak market; check why

Various funds bought stakes in Transformers & Rectifiers after promoter Jitendra Mamtora sold 2.7 million shares

Transformers & Rectifiers (India) shares were locked in 5-per cent upper circuit on the BSE on Tuesday, logging an all-time high of Rs 857.75 per share. The stock gained after various funds bought stakes in the company on Monday.

At around 2:06 PM, the stock was still locked in its  5-per cent upper circuit. In comparison, the BSE Sensex was down 0.28 per cent at 81,747.59 around the same time. 

As per the data provided by the stock exchanges, Stallion Asset (0.4 million shares), Pru World FD Inc (0.61 million shares), PGIM Funds Plc (0.067 million shares), New York State Teachers Retirement System (1.36 million shares), and Societe Generale (0.24 million shares), along with Advanced Series Trust - AST Prudential Growth Allocation Portfolio (0.25 million shares), bought stakes in the company at a price of Rs 780.3 per share. This translates into a cumulative stake of 1.8 per cent.

On the other hand, promoter Jitendra Mamtora sold 2.7 million shares via a block deal at Rs 780.3 per share on the NSE, which implies 1.8 per cent stake. At the end of the September quarter, Mamtora held 33.1 per cent stake in the company.

Transformers & Rectifiers (India) Q2 FY25 results

The company reported its second quarter (Q2FY25) results on October 8, 2024. Transformers and Rectifiers (India) Ltd registered a significant year-on-year (Y-o-Y) rise in net profit 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.

The company's revenue rose 79.4 per cent to Rs 461 crore as against Rs 257 crore in the corresponding quarter of the previous fiscal. It saw a rise in other income to 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.

In the past one year, Transformers & Rectifiers India shares have gained 90 per cent as against Sensex's rise of 23 per cent.