Transformers and Rectifiers India Ltd (TARIL)TARIL is a small-cap power equipment manufacturer specializing in transformers up to 400kV. It has a strong order book and benefits from government infrastructure and power sector capex. In FY24, revenue grew 25% YoY, with improving margins (8–9%) and profit turnaround. Debt levels have reduced, and cash flows improved. However, the business remains cyclical and exposed to raw material price volatility. With increasing demand from renewables and railways, growth prospects are positive, but valuations and execution risks warrant cautious optimism.
