150082917 Equity Shares Alloted As 1:1 Bonus Issue, Q3 Results Positive; BUY/SELL?

A significant player in the Indian transformer market, Transformers & Rectifiers (India) Ltd is an Indian company that specialises in producing and marketing a variety of transformers for both local and foreign markets, including power transformers, distribution transformers, furnace transformers, rectifier transformers, and specialised transformers. Following the distribution of 1:1 bonus shares, Transformers & Rectifiers (India)'s stock finished Monday's trading session 5% down at Rs 382.70 per share, with a market valuation of Rs 11,487.35 Cr.

Transformers & Rectifiers (India) Bonus Shares

"Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, ("SEBI LODR Regulations"), we hereby inform that the Allotment Committee of Board of Directors of Transformers and Rectifiers (India) Limited (the "Company") at its meeting held today i.e., 17th February, 2025, has allotted 150082917 fully paid-up Bonus Equity Shares of the face value of Re.1/- each in the ratio 1:1 to the eligible members of the Company whose names appeared in the Register of Members / Register of the Beneficial Owners, as on Friday, 14th February, 2025, the 'Record Date' fixed for this purpose," said Transformers & Rectifiers (India) in a stock exchange filing.

"The Bonus Equity Shares allotted as above shall rank pari-passu in all respect and carry the same rights as the existing equity shares of the company including dividends and other corporate benefits, if any, declared by the Company after the said allotment," the company further informed stock exchanges.

Transformers & Rectifiers (India) Q3 Financials

The company's net profit rose by 276% from Rs 13.4 crore in the December 2023 quarter to Rs 50.5 crore in the December 2024 quarter. Compared to the December 2023 quarter's revenue of Rs 365.30 crore, revenue from operations grew 49.27% to Rs 545.31 crore in the third quarter of the current fiscal year. In Q3FY25, Q3 EBITDA climbed to Rs 77.9 crore from the December 2023 quarter's EBITDA of Rs 34.3 crore. On an annual basis, the EBITDA margin increased from 9.38% to 14.29% in Q3FY25.

Transformers & Rectifiers (India) Share Price Target

"TARIL stock price is bearish on the Daily charts with strong support at 402.8. A Daily close below support of 381 could lead to a target of 330 in the near term," said A R Ramachandran, Independent Research Analyst.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.