Transformers & Rectifiers (India) bonus shares: Shares of Transformers & Rectifiers (India) Ltd are showing up to 50 per cent fall in some trading apps today as all the stock turned ex-bonus, adjusting to the pre-announced corporate actions. The company had announced to issue bonuses for the eligible shareholders in 1:1 ratio, which is indicating a sharp downside in their stock price.
Shares of Transformers and Rectifiers (TARIL) settled at Rs 848 on Thursday and opened at Rs 431.05 on Friday, post the adjustment of 1:1 bonus. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting a 48-50 per cent-odd fall on the counter.
Post adjustment of bonus issue, shares of TARIL surged more than 4.15 per cent to Rs 441.65 on Friday, with its total market capitalization nearing Rs 13,000 crore mark. The stock has crumbled nearly 35 per cent from its adjusted 52-week high at Rs 650.23, hit on January 8, 2025. However, the stock is still up over 190 per cent from its adjusted 52-week low at Rs 151 hit in March 2024.
Transformers and Rectifiers India has announced to issue 15,00,82,917 bonus shares with Friday, February 14 as the record date to determine the eligibility for the same. The company announced Monday, February 17 as the deemed date of allotment and the effective listing of the bonus shall be done on Tuesday, February 18.
Announcing its Q3FY25 results in January, Transformers and Rectifiers reported a solid 250 per cent YoY jump in its consolidated net profit to Rs 55.48 crore. The company’s revenue from operations increased 51 per cent YoY to Rs 559.4 crore in the reported quarter. Besides the earnings and bonus issue, it also announced a qualified institutional placement (QIP) to raise up to Rs 750 crore.
TARIL posted Q3FY25 results in line with estimates on stellar execution and strong OPM at over 15 per cent, said Nuvama Institutional Equities. "With a strong order book and Rs 19,000-plus prospects, we find strong sales visibility, doubling over FY25–27E," it said.
Nuvama maintained buy' on tailwinds of high demand for HV transformers coupled with TARIL’s backward integration adding to our confidence of margin expansion. "We are raising FY25E/26E/27E EPS by 10 per cent/17 per cent/29 per cent, respectively and target price to Rs 1,450 at 40x FY27E PE multiple." it said. The target price by Nuvama, post adjustment shall be Rs 725.
Recently, Transformers & Rectifiers had received an order worth Rs 114 crore from RRVPNL as the company will be making power transformers of 50 MVA, 132/33 KV, said the company in its exchange filing. The delivery of transformers is expected by next financial year 2025-26, it said.
For Antique Stock Broking, Q3 results were also in-line with expectations. TARIL, it noted, is undertaking an ambitious capacity expansion program, which will not only make the company India’s largest transformer manufacturer, but also one among a few with control over key inputs through backward integration. Antique gave a target price of Rs 1,424 (Rs 712 post adjustment) for TARIL.
TARIL operates three manufacturing units in Gujarat, with a total installed capacity of 37,200 MVA. It is expanding its production capacity by 12,000 MVA, expected to be operational by Q3FY25, focusing on the renewables and green energy sectors. The order book, valued at Rs 2,582 crore as of FY24, driven by orders from solar power plants, metro projects, railways, and other sectors.