The Indian transformer market is expected to grow at a compound annual growth rate (CAGR) of 4.7 percent between 2024 and 2030, reaching $57.8 billion. One of the primary drivers of the power transformer market is the global increase in power demand.
The Central Electricity Authority projects that capital expenditure (capex) in the power transmission sector alone could reach approximately Rs. 4.75 trillion by 2027, indicating substantial investment in upgrading and expanding the grid infrastructure.
Following are a few transformer stocks with P/E less than the industry P/E:
1. Bharat Bijlee Limited
With a market cap of Rs. 2,882.8 crores, the shares of a leading electrical engineering company in India slumped nearly 2.7 percent to Rs. 2,523, during Tuesday’s morning trading session.
The stock has a P/E ratio of 22, compared to the industry’s P/E ratio of 44.8, indicating that the stock is trading at a lower price or in other words, the stock is undervalued.
In Q3 FY25, the company’s revenue from operations grew by around 21.2 percent YoY to Rs. 514 crores, while the net profit grew by nearly 36.6 percent YoY to Rs. 41 crores.
Established in 1946, Bharat Bijlee Limited is engaged in the business of manufacturing of transformers, electric motors, elevator systems, drives and automation, along with providing turnkey solutions for EHV switchyards, HV and MV substations, electrical balance of plant, and more.
2. Shilchar Technologies Limited
With a market cap of Rs. 3,940 crores, the shares of a premier brand of power & distribution transformers over the last 4 decades slumped nearly 3.4 percent to Rs. 5,158.05, during Tuesday’s morning trading session.
The stock has a P/E ratio of 34.4, compared to the industry’s P/E ratio of 44.8, indicating that the stock is trading at a lower price or in other words, the stock is undervalued.
In Q3 FY25, the company’s revenue from operations grew by around 30.5 percent YoY to Rs. 154 crores, while the net profit grew by nearly 34.6 percent YoY to Rs. 35 crores.
Shilchar Technologies Limited is engaged in the business of manufacturing of “Distribution & Power Transformers” as well “Electronics & Telecommunication Transformers.
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3. Apar Industries Limited
With a market cap of Rs. 22,839.7 crores, the shares of India’s largest and the world’s third-largest transformer oils manufacturer moved down by nearly 3.2 percent to Rs. 5,603, during Tuesday’s morning trading session.
The stock has a P/E ratio of 28.6, compared to the industry’s P/E ratio of 44.8, indicating that the stock is trading at a lower price or in other words, the stock is undervalued.
In Q3 FY25, the company’s revenue from operations grew by around 17.6 percent YoY to Rs. 4,716 crores, while the net profit fell by nearly 19.7 percent YoY to Rs. 175 crores.
Apar Industries Limited operates in the diverse fields of electrical and metallurgical engineering offering value-added products and services in power transmission conductors, petroleum specialty oils, power & telecom cables and house wires.
4. Voltamp Transformers Limited
With a market cap of Rs. 6,298 crores, the shares of the leading manufacturer of energy-efficient and customised industrial application transformers slumped nearly 2 percent to Rs. 6,151.05, during Tuesday’s morning trading session.
The stock has a P/E ratio of 19.3, compared to the industry’s P/E ratio of 44.8, indicating that the stock is trading at a lower price or in other words, the stock is undervalued.
In Q3 FY25, the company’s revenue from operations grew by around 18.6 percent YoY to Rs. 484 crores, while the net profit fell by nearly 23 percent YoY to Rs. 73 crores.
Voltamp Transformers Limited is engaged in the business of design, manufacture, and supply of various kinds of transformers, with a strong presence across all industry segments including power, steel, cement, oil & gas, chemical and petrochemical, data centres, and green energy.
Written by Shivani Singh
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