Transformers are devices used in electrical power networks to transmit electrical energy between circuits via electromagnetic induction. They can raise (step up) or lower (step down) voltage levels, increasing efficiency in power transmission and distribution while assuring a safe and dependable energy supply.
The transformer industry is seeing a revolutionary increase, driven by India’s inflated power consumption and the 500 GW green energy transition by 2030, which has prompted a restoration of transmission and distribution.
Moreover, the capex forecast in the power transmission segment alone is expected to be Rs 4.75 trillion by 2027, as per the Central Electricity Authority’s draft National Electricity Plan (Volume II).
According to the Indian Electrical and Electronics Manufacturers Association’s (IEEMA) forecasts, the power and distribution transformer segments would expand by 14% and 21%, respectively, in 2022-23, driven by revived domestic demand.
In India, alternating current (AC) transformation capacity has continuously expanded over the years, reaching 1,217.58 GVA at 220-765 kV levels in March 2024. Between 2018-19 and 2023-24, the AC transformation capacity expanded at a compound annual growth rate (CAGR) of 6.8 percent.
Here are the few transformer sector stocks that gave significant returns in the past six months:-
Transformers and Rectifiers (India) Ltd
Transformers and Rectifiers (India) Limited is an Indian firm that makes power, furnace, and rectifier transformers. The company manufactures transformers for the domestic and foreign markets.
With a market capitalization of Rs 11,522.03 crore, the shares closed at Rs 808.20 per share, increased around 0.25 percent as compared to the previous closing price.
The business specializes in the design and manufacture of transformers with voltage classes ranging from 5kV to 1,200kV and capacities ranging from 0.5MVA to 500MVA. The firm has an unexecuted order book of Rs 2,582 crore, with Rs 2,050 crore of new order intake for the year and Rs 412 crore of new order inflow in the quarter.
The stock has given a multi-bagger return of 328.68 percent in just six months and 904.34 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 10.04 lakh.
Bharat Bijlee Ltd
Bharat Bijlee Limited is an Indian electrical engineering firm. The company’s major products include transformers, electric motors, magnet technology machines, drives, and automation systems. It also does turnkey projects (switchyards). Its business segments include Power Systems and Industrial Systems.
With a market capitalization of Rs 5,424.37 crore, the shares closed at Rs 4,799.00 per share, increased around 9.11 percent as compared to the previous closing price.
The firm has a cutting-edge factory with a manufacturing capacity of 18,000 MVA and a fully functional testing laboratory that was NABL-approved in 2014. It provides up to 200MVA, 200kV, and 3-phase transformers to State Electricity Boards, Utilities, PSUs, Industries, and international clients.
The stock has given a multi-bagger return of 145.57 percent in just six months and 211.27 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 3.11 lakh.
Indo Tech Transformers Limited
Indo Tech Transformers Limited is an Indian transformer manufacturing firm. The company manufactures power and distribution transformers, as well as special application transformers, mobile sub-station transformers, and substations.
With a market capitalization of Rs 1,845.49 crore, the shares closed at Rs 1,737.75 per share, decreased around 0.72 percent as compared to the previous closing price.
The firm has production facilities in Kancheepuram, Tamil Nadu. Over 56000 transformers of various ratings up to 245 KV are in service at various substations and industries throughout India and the world.
The stock has given a multi-bagger return of 187.37 percent in just six months and 329.99 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 4.29 lakh.
Shilchar Technologies Ltd
Shilchar Technologies Limited is an India-based company that manufactures and distributes power transformers, as well as electronics and telecommunications transformers. Transformers & Parts is the Company’s primary business segment.
With a market capitalization of Rs 4,358.72 crore, the shares closed at Rs 5,715.00 per share, increased around 3.50 percent as compared to the previous closing price.
Shilchar Technologies Ltd has a manufacturing capacity of 4000 MVA per annum to produce distribution transformers ranging from 5 KVA to 3,000 KVA and power transformers ranging from 3,000 KVA to 50,000 KVA.
The stock has given a multi-bagger return of 136.97 percent in just six months and 518.12 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 6.18 lakh.
Written by:- Abhishek Singh
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