This small-cap stock belongs to an EPC company that specializes in power transmission and distribution, with integrated manufacturing facilities. The company’s strong order stands at 2.35 times the market cap, reflecting 15 percent more than its current market cap value.
Stock Price Movement:
With a market capitalization of Rs. 6,669.17 crore, the shares of Transrail Lighting Limited closed at Rs. 496.75 per equity share, down nearly around 2.11 percent from its previous day’s close price of Rs. 507.45.
Company Overview:
Transrail Lighting Limited is a top Indian company specializing in engineering, procurement, and construction projects. It has completed over 200 power projects and operates actively in India and 58 other countries worldwide.
Order Book:
The company’s total order book stands at Rs. 15,643 crore, which is approximately 134.57 percent higher than its market capitalization of Rs. 6,669.17 crore.
As of December 2024, Transrail Lighting Limited’s pending order book is valued at Rs. 11,499 crore, with the Power T&D segment contributing 90.52 percent. The company’s orders are evenly split between international (51 percent) and domestic (49 percent) markets. Including L1 projects, the total unexecuted order book rises to Rs. 15,643 crore, highlighting strong growth prospects.
Management Guidance:
Transrail Lighting Limited aims for 30 percent revenue growth in FY25, targeting approximately Rs. 5,200 crore, up from Rs. 4,000 crore in FY24. For FY26, the company expects a 25 percent increase based on FY25 results.
Additionally, the EBITDA margins are projected to remain between 12 percent and 12.5 percent, reflecting solid financial performance and a strong order pipeline.
Key Business Milestones
The company achieved key milestones in multiple sectors. In power transmission, it secured the 800kV HVDC KPS2-Nagpur line and commissioned 400kV and 220kV substations. Internationally, it won its first 80 MW solar EPC order and a 400kV transmission project in Nepal. The company also contributed to India’s bullet train project and built a 199-meter cooling tower in Telangana.
Recent quarter results and ratio:
Transrail Lighting Limited’s revenue has increased from Rs. 837 crore in Q3 FY24 to Rs. 1,358 crore in Q3 FY25, which has grown by 62.25 percent. The net profit has also grown by 89.80 percent from Rs. 49 crore in Q3 FY24 to Rs. 93 crore in Q3 FY25.
Transrail Lighting Limited’s revenue and net profit have grown at a CAGR of 21.34 percent and 22.94 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 35 percent and 24.1 percent, respectively. Transrail Lighting Limited has an earnings per share (EPS) of Rs. 18.8, and its debt-to-equity ratio is 0.55x.
Written By – Nikhil Naik
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