Despite a weak market, the share price of Transformers & Rectifiers India (TRIL) has rallied by 11.3% to ₹311.85, taking its two-day gain to 30%. This surge in stock price is supported by a significant increase in trading volumes, with 34 million shares changing hands on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The recent stock market trend has been a relief for shareholders who witnessed the stock's biggest one-way crash in recent times. The share price had dropped by nearly 40% between November 10 and December 12, due to multiple negative news flows, including a weak performance in the September quarter and allegations of corruption and fraud linked to a $486 million project in Nigeria.
The company's net profit declined by 24% to ₹34 crore in the September quarter, compared to ₹45 crore in the same period last year. Revenue from operations remained flat at ₹460 crore, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped by 27% to ₹51.3 crore, with margins contracting by 398 basis points to 11.15%.
Although the stock price has recovered sharply from its recent lows, it still trades nearly 48% below its recent highs. However, the company's long-term trend remains strong, with a massive 926% return over the past three years and an extraordinary 6,500% gain over the last five years. TRIL operates across various sectors, including power generation, transmission and distribution, railways, renewable energy, infrastructure, and industrial manufacturing.
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