The shares of this smallcap power stock, engaged in manufacturing various kinds of transformers has jumped 4.5 percent after the company announced that it has acquired a 51 percent stake in Posco-Poggenamp Electrical Steel Private Limited (PPESPL)
Price Action
With a market capitalization of Rs 13,866.91 crore, the shares of Transformers and Rectifiers (India) Limited surged 4.4 percent in Thursday’s trading session and made an intraday high of Rs 939.95 per share compared to its previous closing price of Rs 898.25 per share.
The stock reiterated from its day’s high and was trading at Rs 915.10 which is 1.9 percent higher than the previous closing price.
What Happened
Transformers and Rectifiers (India) Limited has acquired 1.37 crore equity shares of Posco-Poggenamp Electrical Steel Private Limited (PPESPL), representing a 51 percent controlling stake, through a Share Purchase and Shareholder’s Agreement.
With an annual processing capacity of 24,000 tonnes, PPESPL is one of the leading producers of CRGO laminations for transformers and reactors. By acquiring such a stake PPESPL, Transformers & Rectifiers (India) secures complete control over CRGO processing, which enhances the quality and consistency of the essential electrical steel in their supply chain.
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Company Overview
Headquartered in Ahmedabad, Transformers and Rectifiers (India) Limited is a leading Indian manufacturer of transformers and reactors. Its product range includes single-phase power transformers (up to 500MVA, 1200kV), mobile substations, earthing transformers, and transformers for solar and green hydrogen applications among many others.
Operating on a B2B model, it serves sectors such as power generation, transmission and distribution. With an installed capacity of approximately 40,000MVA, the company has a global presence in over 25 countries.
As of Q3 FY25, the company has a strong order book of Rs 3,686 crore with an inflow of Rs 631 crore in Q3 FY25 alone. About 47 percent of the total customer wise order book comes from Central Utilities, 10 percent from State Utilities and the remaining 43 percent from Industrial customers.
Financial Highlights
In Q3 FY25, the company reported a 51 percent year on year increase in revenue to Rs 559 crore. This was accompanied by a whopping 252 percent increase in net profits to Rs 55 crore, year on year.
Written by Shwetha Sairam
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