This Madhuri Kela-owned stock has surged 59% in 12 days; up 729% in 1 year

Transformers and Rectifiers (India) hit the 5 per cent upper circuit on Tuesday after the company reported 4-fold jump in Q4 net profit at Rs 35.95 crore.

Shares of Transformers and Rectifiers (India) (TRIL) hit a new high of Rs 494.25, and were locked at the 5 per cent upper circuit on the BSE on Tuesday at 10:40 am. The company had reported over 4-fold jump in net profit at Rs 35.95 crore for the March quarter (Q4FY24), on the back of strong operational performance. The company had posted a net profit of Rs 8.85 crore in Q4FY23.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) more-than-doubled to Rs 64.97 crore from Rs 30.72 crore in the year ago quarter. Margins improved to 12.93 per cent from 7.17 per cent.

Revenue from operations grew 18 per cent year-on-year at Rs 500.28 crore. The management said revenue improvement was seen due to faster execution of major orders, better production planning, improved receivables, internal control systems, etc.

The company has strong order book position of Rs 2,572 crore as on Q4FY24. The company said inquiries of domestic orders worth Rs 17,176 crore were under negotiation.

The management said the new capacity of 12,000 MVA will be operational by December 2024 for the Renewables and Green Energy sector. TRIL manufactures an entire range of transformers viz. Power, Distribution, Furnace, Rectifier Transformers & Shunt Reactors, creating a unique positioning for itself in the transformer industry.

In February 2024, TRIL was awarded orders worth Rs 232 crore from Power Grid Corporation of India to be completed in 21 months. The scope of order included designing, engineering, manufacture, testing at Manufacturers works and supply of 5 Nos of 500 MVA, 400/220/33kV, 3- Phase ICT, 5 Nos of 500 MVA 400/220/33kV, 3-Phase Auto Transformers along with all fitting, accessories for complete execution and Local Transportation, In Transit Insurance, Loading and uploading & Installation Services.

Meanwhile, in the past 12 trading days, the stock has appreciated by 59 per cent. In the past one year, it zoomed 729 per cent, as compared to 25 per cent rally in the S&P BSE Sensex. Currently, TRIL is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

According to shareholding pattern data, Madhuri Madhusudan Kela, the wife of ace investor Madhusudan Kela, held 5.58 million equity shares or 3.91 per cent stake in TRIL at the end of Q4FY24.

Meanwhile, HSBC Large & Mid Cap Fund has increased its stake in TRIL to 1.89 per cent in Q4FY24 from NIL holding at the end of December 2023 quarter (Q3FY23).