Transformers & Rectifiers India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Transformers and Rectifiers (India) Limited (TARIL) is navigating a critical transition phase, marked by aggressive capacity expansion and strategic entry into the nuclear power segment. Management's commentary highlights a robust order book of ₹6,630 crore and a target for 25% revenue growth in FY27, driven by strong demand across power and renewable sectors. However, operational bottlenecks due to infrastructure upgrades pose execution risks that could impact near-term performance. Vista's financial outlook reflects these dynamics, projecting stable margins and a fair valuation, with an expected upside of approximately 26%. The company's ambitious goal of achieving US$1 billion in revenue over the next three years, supported by significant investments in backward integration, aligns with the industry's growth trajectory, particularly in the context of government infrastructure initiatives. While the macro environment remains mixed, with inflationary pressures and cautious investor sentiment, the long-term outlook for TARIL is bolstered by favorable industry trends. Over the next 12-24 months, key opportunities include leveraging operational efficiencies from backward integration and capitalizing on the growing demand for transmission infrastructure, while watchpoints include raw material price volatility and competition from international players
Why We Like This Stock
- Robust order book and strong demand from power and renewable sectors support revenue growth
- Strategic investments in capacity expansion and backward integration are expected to enhance operational efficiency and margins
- Favorable industry trends, including government infrastructure initiatives, provide a solid foundation for long-term growth
Things To Watch Out For
- Operational bottlenecks from infrastructure upgrades may hinder near-term financial performance
- Raw material price volatility poses risks to margins and profitability
- Intense competition from international players could pressure market share and pricing power
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,291 | 2,017 | 2,509 | 2,549 | 2,845 |
| Profit Before Tax (Cr.) | 64 | 282 | 363 | 379 | 420 |
| PBT Margin | 4.9% | 14.0% | 14.5% | 14.9% | 14.8% |
| Net Profit (Cr.) | 42 | 206 | 264 | 276 | 297 |
| Earnings Per Share | 1.3 | 6.8 | 8.5 | 8.9 | 9.9 |
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 also offers distribution transformers, including energy efficient transformers, transformers with packaged substations, copper and aluminum 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. It serves power transmission, cement, paper and pulp, metal processing, mining, railways, pharmaceutical, petrochemical, distribution, and green energy industries. 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.