Strong Recovery for Transformers & Rectifiers India Stock
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).
Reasons Behind the Rally
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.
September Quarter Performance
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%.
Long-Term Performance
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.
Key Facts
- The company has a strong domestic presence in India and has successfully expanded internationally, exporting products to several countries across Asia, Africa, the Middle East, and beyond.
- TRIL's stock price has surged from ₹14.65 to ₹405 over the past few years, translating into an impressive return of 2,664%.
- We advise investors to check with certified experts before making any investment decisions.