Synopsis:
A small cap company’s shares hit 10 percent upper circuit today’s trading session after world bank news.
A small cap company that is a manufacturer of Power, Furnace and Rectifier Transformers, is in the spotlight today after being removed from debarred by the World Bank, drawing strong market attention.
With a market capitalization of Rs. 9,551.28 crore, the shares of Transformers & Rectifiers India Limited were trading at Rs. 318.2, hit 10 percent Upper circuit from its previous closing price of Rs. 289.30.
What’s the News?
As per sources, The World Bank has removed the Company from its list of Debarred Firms and Individuals and has granted an extension for submitting the Company’s response in the sanctions case, with the new deadline set for 12 January 2026.
Q2FY26 Results
The company reported revenue of Rs. 460.03 crore in Q2 FY26, which is almost flat YoY (down 0.33 percent) compared to Rs. 461.54 crore in Q2 FY25 , while sequentially it declined by 13.09 percent from Rs. 529.33 crore in Q1 FY26.
Profit for Q2 FY26 stood at Rs. 37.35 crore, down 18.64 percent YoY from Rs. 45.91 crore in Q2 FY25 and sharply lower by 44.65 percent QoQ from Rs. 67.46 crore in Q1 FY26, reflecting margin pressure and reduced profitability both annually and sequentially.
Other Updates
The company has a strong operational profile with an installed capacity of around 40,000 MVA and a global presence in over 25 countries. It is currently negotiating inquiries worth over Rs. 18,700 crore, holds an unexecuted order book of Rs. 5,472 crore, and has secured new order inflows of Rs. 592 crore in Q2.
About the company
Transformers and Rectifiers (India) Limited is an Ahmedabad-based transformer manufacturer, founded in 1981, that produces a wide range of power, distribution, rectifier, furnace, specialty transformers, as well as shunt and series reactors. Its product portfolio includes generator, auxiliary, and trackside transformers; energy-efficient and hermetically sealed distribution transformers; multi-pulse rectifier transformers; and various furnace and specialty transformers for industrial applications.
A return on equity (ROE) of about 23.4 percent, a return on capital employed (ROCE) of about 28 percent and debt to equity ratio at 0.23 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 38.6x, which is lower than its industry P/E of 45.2x.
Written By Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
