Transformers & Rectifiers India
Stock Snapshot
Price Performance
Vista Outlook
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Transformers and Rectifiers (India) Limited (TARIL) is positioned for substantial growth, driven by a robust order book of ₹6,630 crore and strategic investments in capacity expansion and backward integration. Management's target of 25% revenue growth for FY27, alongside a planned capacity increase of 22,000 MVA, underscores their commitment to enhancing operational efficiency and market share. The company's focus on high-voltage and niche transformer applications, supported by NABL-accredited testing capabilities, positions it favorably against competitors. Despite potential headwinds from raw material price volatility and intense competition, TARIL's proactive measures in order-linked input procurement mitigate these risks. Vista's financial outlook reflects a stable margin environment and a strong balance sheet, with manageable leverage and healthy cash flow generation. The anticipated industry growth, particularly in data centers and renewable energy integration, aligns with TARIL's strategic initiatives, reinforcing the expected upside in valuation. Over the next 12-24 months, key opportunities include leveraging government infrastructure initiatives and expanding into high-demand segments, while watchpoints include execution risks related to capacity expansion and market competition
Why We Like This Stock
- Robust order book of ₹6,630 crore and a target of 25% revenue growth for FY27
- Strategic investments in capacity expansion and backward integration to enhance operational efficiency
- Favorable industry dynamics driven by government infrastructure initiatives and demand for renewable energy
Things To Watch Out For
- Potential risks from raw material price volatility impacting margins
- Execution delays in capacity commissioning and backward integration projects
- Intense competition in the power equipment sector may pressure market share
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,291 | 2,017 | 2,509 | 2,558 | 3,097 |
| Profit Before Tax (Cr.) | 64 | 282 | 363 | 430 | 502 |
| PBT Margin | 4.9% | 14.0% | 1446.8% | 16.8% | 16.2% |
| Net Profit (Cr.) | 42 | 206 | 264 | 313 | 354 |
| Earnings Per Share | 1.3 | 6.8 | 8.5 | 10.1 | 11.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Nuvama | ▼ Reduce | 295 | 22-Apr-2026 |
Company Overview
Show Company Profile
Transformers and Rectifiers (India) Limited, together with its subsidiaries, manufactures and sells transformers in India. The company provides power transformers, such as generator transformers, unit and station auxiliary transformers, small and medium power transformers, and trackside transformers for railways; and rectifier transformers, including 6 and 12/24 pulse transformers with IPT, as well as transformers for bridge construction. It offers distribution transformers, including energy efficient transformers, transformers with packaged substations, copper and aluminium wounds, hermitically sealed type transformers, and transformers with corrugated cooling fins. In addition, the company provides furnace transformers consisting of electric arc furnace and submerged arc furnace transformers, ladle refining furnace transformers, induction furnace transformers, and DC arc furnace transformers; specialty transformers, including testing and earthing transformers and transformers having multiple secondaries; and shunt and series reactors. It exports its products. The company was formerly known as Triveni Electric Company Limited and changed its name to Transformers and Rectifiers (India) Limited in March 1995. Transformers and Rectifiers (India) Limited was founded in 1981 and is based in Ahmedabad, India.