Multibagger power stock gains on orders worth Rs 574 crore; shares up 238% this year

Shares of Transformers and Rectifiers (India) Ltd gained over 3% today after the electrical equipment maker said it received orders worth Rs 219 crore from Power Grid Corporation of India. It also won a Rs 237 crore order from Power Grid on December 19. The company said on Tuesday it received orders for total contract value of Rs 118 crore from Uttar Pradesh Power Transmission Corporation. It has won orders worth Rs 574 crore in two days.

tril-share-price-364126">Transformers and Rectifiers stock gained 3.33% to Rs 190.35 against the previous close of Rs 184.20 on BSE. Market cap of the firm rose to Rs 2.15 lakh crore. The multibagger power stock has gained 113% in six months and risen 238% this year. In two years, the stock zoomed 564%.

In the current session, total 1.48 lakh shares of Transformers and Rectifiers changed hands amounting to a turnover of Rs 2.79 crore on BSE. Transformers and Rectifiers shares have a beta of 0.1, indicating very low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Transformers and Rectifiers stock stands at 46.8, signaling it's trading neither in the overbought nor in the oversold zone. Transformers and Rectifiers shares are trading higher than the 5 day, 10 day, 50 day, 100 day, 150 day, 200 day but lower than the 20 day and 30 day moving averages.

The order relates to designing, engineering, manufacture, testing at manufacturers works and supply of 13 Nos of 110 MVAR, 765kV, 1-Phase Reactors, 2 Nos of 125 MVAR 420kV, 3-Phase Reactor, 6 Nos of 110 MVAR 765kV, 1-Phase Reactors along with all fitting, accessories for complete execution and local transportation, in transit insurance, loading and uploading & installation services.

The work related to the order shall be completed within 15 months from date of issue of notification of award, said the firm.

Transformers and Rectifiers logged a consolidated revenue of Rs 258.1 crore in the second quarter of this fiscal against a profit of Rs 309.3 crore in the year-ago period. Net profit fell to Rs 1.6 crore during the September quarter of 2023-24 financial year from Rs 11.5 crore in the corresponding period of the previous year.

Transformers and Rectifiers (India) Limited manufactures power, furnace, and rectifier transformers. The company is a manufacturer of a range of transformers, which provides to both the domestic and the international market. The company offers a range of power transformers from medium to ultra-high voltage (1200 kV AC) and from small (5 MVA) to large power ratings (500 MVA).

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