The shares of Transformers and Rectifyers (India) Limited saw a tremendous rise on Monday, March 17.
- The stock rose over 8% to an intra-day high of ₹ 405.
- The reason for this surge is orders worth Rs 726 crore received from Gujarat Energy Transmission Corporation Limited (GETCO).
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The company gets an order of 726 crore – what is details?
Transformers and Rectifyers India Limited said in the information given to the stock exchange:
- The order includes the construction of auto transformers and bus reactors.
- Also, other related works have also been assigned.
- This project will have to be completed within 18 months (from the date of Loi release).
New plant for solar energy – 150 transformers will be built every month
The company’s managing director Satyen Mamtora told that:
- A new transformer plant is being set up for solar energy and green hydrogen projects.
- 150 transformers will be produced every month.
- The rating of these transformers will be around 12.5 MVA (Megavolt ampere).
Extension Scheme – Capacity will increase up to 70,000 MVA
- The company’s total production capacity is about to reach 15,000 MVA.
- The Moraiya plant is planned to increase the capacity of 20,000 MVA.
- The total production capacity will reach 65,000-70,000 MVA over the next few years.
What does market data say?
- The annual demand for transformers in India is 4.5 lakh MVA.
- The current supply is limited to 3.8 lakh MVA only.
- The company has received inquiries for 18,000 MVA and hopefully
- In the next two quarters, 20% of the inquiry can be converted into a strong order.
Will this stock move forward?
There are strong order books and expansion plans behind the recent rise in shares.
- If the company does its order delivery properly, the stock may be seen further.
- Solar energy and green hydrogen projects will also benefit growth.
