In recent weeks, despite a turbulent stock market, Transformers & Rectifiers (India) has shown remarkable resilience, with its shares hitting the 5% upper circuit limit for three consecutive trading sessions. This impressive performance has led to an overall gain of 15%, pushing the stock price to ₹519. The surge in stock value can be attributed to the company’s exceptional results for the March quarter, which exceeded analysts’ expectations.

Strong Financial Performance Drives Stock Rally

On Tuesday, the company unveiled a staggering increase in its consolidated net profit, which more than doubled to ₹94.20 crore for the quarter ending March 2025, up from ₹39.93 crore in the same quarter last year.

• Revenue Growth: Consolidated revenue rose significantly by 32.96% year-on-year, reaching ₹683.42 crore.
• EBITDA Gains: The EBITDA reached ₹140 crore, with margins expanding by 540 basis points to 19.4%, showcasing enhanced operational efficiency.

For the entire fiscal year FY25, Transformers & Rectifiers reported a net profit of ₹216.44 crore, compared to just ₹47.01 crore in FY24—a remarkable increase of nearly 4.5 times.

Promising Future Outlook

At the close of the March quarter, the company boasted an impressive order book of ₹5,132 crore. Looking ahead, Transformers & Rectifiers has set a goal for FY26 to achieve an order book target of ₹8,000 crore, indicating a projected 56% year-on-year growth and an operating margin target of 16-17%.

Over the medium term, the company has ambitious plans to reach $1 billion in annual revenues within the next three to four years, driven by robust sector growth and strategic initiatives. According to Nuvama Institutional Equities, the company outperformed Q4FY25 EBITDA and PAT estimates by 20% and 13% respectively, fueled by a 32% increase in sales and margin improvements.

Impressive Long-Term Returns

After experiencing a slow start to CY25, with negative performance in January and February, the stock rebounded in March with a remarkable 39% surge. So far this month, it has maintained its upward trend, gaining an additional 2%.

Reflecting on its long-term performance, Transformers & Rectifiers’ shares have skyrocketed from ₹28 to ₹519, marking a staggering rise of 1,842%. Over the past five years, the stock has soared from just ₹3.45 to ₹519, representing an extraordinary gain of 15,000%.

• Investment Growth: An initial investment of ₹1 lakh at the beginning of this period would now be valued at approximately ₹1.50 crore.

About Transformers & Rectifiers (India)

Transformers & Rectifiers caters to a diverse range of industries, including power generation, railways, renewable energy, and industrial manufacturing. With a robust presence in the Indian market, the company has also successfully expanded its reach to various international markets, exporting its products to Asia, Africa, the Middle East, and beyond. Its extensive product lineup includes a variety of power transformers, rectifiers, and specialty transformers.

In a market characterized by fluctuations, Transformers & Rectifiers stands out as a beacon of potential for investors looking for promising small-cap stocks.