Stock Analysis: Transformers & Rectifiers India Ltd

Apr 11, 2025

Introduction:
Transformers and Rectifiers (India) Ltd. is a manufacturer of Power, Furnace and Rectifier Transformers. The company is a leading Indian manufacturer of transformers & reactors. Its product portfolio includes Single-phase power transformers up to 500MVA & 1200kV Class, Furnace Transformers, Rectifier & Distribution Transformers, Specialty Transformers, Series & Shunt Reactors, Mobile Sub Stations, Earthing Transformers, etc. It operates on a B2B model, catering to power generation, transmission, distribution, & industrial sectors.

Fundamentals:
Market Cap: ₹ 16,348 Cr.;
Stock P/E: 77.2 (Ind. P/E: 46.35); 👎
ROCE: 23.4% 👍 ; ROE: 28.0% 👍;
PEG Ratio: 0.17 👍; (Stock price is fairly valued relative to its growth prospects)
3 Years Sales Growth: 20% 👍
3 Years Compounded Profit Growth: 148% 👍
3 Years Stock Price CAGR: 210% 👍

Technicals:
The stock has given a good breakout of over 52% from the 355 levels in March 2025.
The stock price is trading above all the important resistance levels like 20 EMA(Black Line), 50 EMA (Orange Line), and 100 EMAs (Blue Line)
Bullish Momentum - Above Short, Medium and Long Term Moving Averages
We can expect good movement if it crosses the current price level of 544 in the weekly chart.
Resistance levels: 544, 598, 651
Support levels: 410, 377, 307
16.07% away from 52 week high
117.84% away from 52 week low
Outperformer - Transformers and Rectifiers India up by 29.33% v/s NIFTY 50 up by 1.47% in last 1 month

Pros:

• Good quarterly growth in the recent results
  
• Effectively using its capital to generate profit - RoCE improving since last 3 year
  
• Growth in Net Profit with increasing Profit Margin (QoQ)
  
• Company low Debt
  
• Increasing Revenue every quarter for the past 3 quarters
  
• FII Increasing their shareholding in the last quarters
  

Cons:

• DIIs decreased their shareholding last quarter
  

Dec 2, 2025

Trade active

An analysis of TARIL was made in April 2025 when the price was above 500.
Significant changes happened in the intermittent period, and the stock has been beaten down significantly.
The stock P/E has decreased significantly, and rerating is happening.
Market Cap: ₹ 16,348 Cr.;
Stock P/E: 31.3 (Ind. P/E: 47.04); 👍
ROCE: 28% 👍 ; ROE: 23.4% 👍;
PEG Ratio: 0.3 👍; (Stock price is UNDERVALUED relative to its growth prospects)
3 Years Sales Growth: 20% 👍3 Years of Compounded Profit Growth: 148% 👍3 Years Stock Price CAGR: 210% 👍
Note:
From the valuation perspective, the stock seems attractive.
However, continuous fall is a cause of concern.
A positive sign is that FII have marginally increased their holding from 10.94 (June 2025) to 11.21 (Sept 2025).
Despite the current difficulties, the company has a substantial order book.
The completion of the 15,000 MVA capacity expansion is anticipated between December 2025 and March 2026.