Share Trading Tips

Transformer & Rectifiers (Rs. 399.00) (Code : 532928) :-

After reporting disappointing performance in the last 2~3 quarters, Transformer & Rectifiers has finally reported rocking performance for Q4FY10. The sales and profit for the quarter grew by 60% and 55% respectively against the corresponding period last year. Company is one of the few manufacturers in the country manufacturing the entire range of transformers namely power generation, transmission and distribution transformers, industrial transformers such as furnace transformers, and special transformers such as mobile substation, rectifiers, testing transformers etc. Infact, it is among the largest manufacturer of furnace transformers in India. To cater the rising demand, company has recently expanded its capacity aggressively. In May’09 its Greenfield plant in Moraiya (Ahmedabad) with an installed capacity of 16000 MVA went on stream which tripled the company’s production capacity to 23200 from 7200 MVA. Although it may take couple of years for the company to reach 100% capacity utilization, still it will witness a drastic increase in volume for FY11. For entire FY10 it recorded 20% increase in sales to Rs 523 cr and nearly 15% rise in PAT to Rs 50 cr posting an EPS of Rs 38 on current equity of Rs 12.90 cr. For FY11 it has the potential to post an EPS of more than Rs 65. Keep accumulating at sharp declines