Shares of this multibagger stock under the ‘small-cap’ category hit the 5% upper circuit on Monday after receiving orders worth Rs 232 crores from Power Grid Corporation of India Limited. In the last five trading sessions, the company’s stock rose nearly 10 percent.
With a market capitalization of Rs 5,113.06 crores, the stocks of Transformers & Rectifiers (India) Limited started their trading session on Monday at Rs 345 and are currently locked in the 5 percent upper circuit registered at a price of Rs 358.65 apiece.
Such bullish stock price movements in the company’s share price were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about securing orders aggregating to Rs 232 crores from “Power Grid Corporation of India Limited” (PGCIL).
The abovementioned order is received for the purpose of designing, engineering, manufacturing, testing works, and supplying Auto Transformers along with all fitting and accessories for complete execution and local transportation, transit Insurance, loading, and uploading & Installation Services. The work order shall be completed within 21 months from the date of issue of the notification of award
Keeping a purview of six months, the company’s stock delivered multibagger returns of approximately 195 percent for its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.95 lakhs.
During the recent financial quarters, the company’s prime indicators of business such as operating revenues as well as after-tax profits rose significantly with the former taking a shift from Rs 257 crores during Q2FY24 to Rs 369 crores during Q3FY24 and the latter, keeping the timeframe the same, shifted up drastically from Rs 1 crore to Rs 15 crores.
As per the recent presentations, the company’s unexecuted order book stands at Rs 2,572 crores, out of which 62 percent is attributable to the ‘Power Transformer’ segment, 30 percent to the ‘Reactors’ segment, and the remaining to Rectifier Transformers, etc.
Transformers & Rectifiers (India) Limited is an India-based company engaged in the business of manufacturing a wide range of transformers and rectifiers. The company’s product portfolio includes power transformers, trackside transformers, distribution Transformers, Rectifier Transformers, and many more.
Written by Amit Madnani
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