Rs 5 To Rs 70: Multibagger Power Sector Stock Rallies 1300% In 2-Years, Buy?

Leading small cap stock operating in Power sector, Transformers & Rectifiers (India) Ltd is in news. The stock hit its new 52-week high today and has already given multibagger returns in last 6 months at 128%. The stock has rallied from Rs 5 apiece (April 1, 2020) to Rs 70 apiece (January 11, 2023) in 2 years 9 months.

ICICI Direct has assigned buy call to the stock with a target price of Rs 86 apiece indicating a return of 23% if it is bought at current market price of Rs 70 apiece. Check key details below:

1. Transformers & Rectifiers (India) Ltd Stock Performance

The last trading price of the stock is Rs 70 apiece with an intraday gain of 10%. The stock also hit its new 52-week high in trade on January 11, 2023. The company has a market capitalisation of Rs 940 crore. The stock's 52-week high is Rs 71 apiece and 52-week low is Rs 25 apiece, respectively.

2. Transformers & Rectifiers Return

The stock has rallied sharply over the years. The stock was priced Rs 5 as of April 1, 2020 and since then it has surged to Rs 70 apiece as of January 11, 2023. It has given 1300% return in 2 years and 9 months.

In last 1 year, it has given 107% return, 792% return in last 3-years, and 67% return in last 5-years. It has given multibagger returns in last 6-months at 128%.

3. ICICI Direct Recommends Buy

According to ICICI Direct, "After many years of stagnant performance, growth prospects are looking bright across all parameters. Revenue CAGR of 20% in FY22- 24E coupled with margins hitting 10.8% in FY24E will enable TRIL to post its best ever profitability performance. We initiate coverage under I-Direct Nano format with a BUY rating. We value TRIL at Rs 86 i.e. 15x on FY24E EPS."

4. About Transformers & Rectifiers (India) Ltd

It is a renowned manufacturer of transformers up to 1200 kV class. TRIL has a wide range of transformers, like power & distribution transformers, furnace transformers, rectifier transformers & special transformers. The small cap company was incorporated in 1994 and operates in Power sector.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.