During the Thursday trading session, the shares of one of the Leading electrical equipment and transformer companies in India jumped upto 2.5 percent in the days trade following acquisition of a controlling stake in Posco Poggenamp Electrical Steel Private Limited.
Price action
With the market capitalization of Rs.15,371 Crores on Thursday, the shares of Transformers and Rectifiers Ltd jumped upto 2.5 percent making a days high at Rs.1,045 compared to its previous closing price of Rs.1,020.10
What happened
The Shares of Transformers and Rectifiers Ltd surged by upto 2.5 percent to Rs 1,045 on Thursday following acquiring a controlling stake in Posco Poggenamp Electrical Steel Private Limited by paying through cash consideration (money) for the shares and the acquisition is expected to be completed within 7 days of signing the Share Purchase and Shareholders agreement.
The main reason for this acquisition is that Transformers and Rectifiers Ltd (TARIL) need to become fully integrated CRGO steel manufacturing transformers and the exact financial size of the deal is still under review and is confidential at this time.
ColdRolled Grain-Oriented (CRGO) steel, is an essential material used primarily in the cores of transformers. It is engineered to have a specific grain structure that reduces energy loss during the magnetic flux process in transformers.
About the company
Transformers and Rectifiers Limited (TARIL) specializes in the manufacturing of transformers and power equipment was founded in 1994, TARIL plays a key role in the power sector by providing reliable solutions for power transmission and distribution.
The company manufactures a wide range of products, including transformers, reactors, and related equipment,designed to meet the demands of high voltage systems, ranging from low to ultra-high voltage applications. It is used in sectors such as power generation, industrial applications, and infrastructure projects ,catering to both domestic and international markets, It has unexecuted order book of worth Rs.3,500 Crores.
Financials
The company’s revenue rose by 83.3 percent, from Rs. 258.12 crore in Q2FY24 to Rs 473.31 crore in Q2FY25. Meanwhile, Net profit increased from a profit of Rs 1.61 crores to a profit of Rs 45.25 crore during the same period.
Key Financial ratios
Transformers and Rectifiers Limited (TARIL) has a Return on Equity (RoE) of 10.95 percent and a Return on Capital Employed (RoCE) of 15.87 percent and Furthermore, the company’s debt-to-equity ratio is 0.22.
Stock Performance
The stock has provided impressive returns of about 449.47 percent over the last year, along with an impressive 55 percent gain in the last three months of 2024, it has continued to perform strongly.
Written by Sridhar J
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