Transformers and Rectifiers (India) (NSEI:TRIL) - Share price, News & Analysis

Q: What is the Fair Price of TRIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

TRIL (₹28.8) is trading above our estimate of [[fair value]] (₹0.72)

TRIL fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	5/6
Financial Health	2/6
Dividends	1/6

TRIL Stock Overview

Transformers and Rectifiers (India) Limited, together with its subsidiaries, manufactures, sells, and exports transformers in India and internationally.

Rewards

Earnings grew by 98.2% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (₹4B)

Transformers and Rectifiers (India) Competitors

Ram Ratna Wires

BSE:522281

₹3.7b

De Nora India

BSE:590031

₹4.5b

Swelect Energy Systems

BSE:532051

₹4.8b

Salzer Electronics

BSE:517059

₹2.8b

Price History & Performance

Summary of all time highs, changes and price drops for Transformers and Rectifiers (India)
Historical stock prices
Current Share Price	₹28.80
52 Week High	₹46.60
52 Week Low	₹23.60
Beta	1.51
1 Month Change	-3.03%
3 Month Change	-12.60%
1 Year Change	-8.28%
3 Year Change	141.00%
5 Year Change	-17.31%
Change since IPO	242.25%

Recent News & Updates

Jun 18

Do Transformers and Rectifiers (India)'s (NSE:TRIL) Earnings Warrant Your Attention?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Mar 03

Here's What To Make Of Transformers and Rectifiers (India)'s (NSE:TRIL) Decelerating Rates Of Return

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Shareholder Returns

	TRIL	IN Electrical	IN Market
7D	6.5%	3.5%	3.0%
1Y	-8.3%	13.1%	0.3%

Return vs Industry: TRIL underperformed the Indian Electrical industry which returned 14.1% over the past year.

Return vs Market: TRIL underperformed the Indian Market which returned 0.6% over the past year.

Price Volatility

Is TRIL's price volatile compared to industry and market?
TRIL volatility
TRIL Average Weekly Movement	6.9%
Electrical Industry Average Movement	6.6%
Market Average Movement	7.0%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: TRIL is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TRIL's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	516	Satyen Mamtora	https://www.transformerindia.com

Transformers and Rectifiers (India) Limited, together with its subsidiaries, manufactures, sells, and exports transformers in India and internationally. It provides power transformers, such as generator transformers, unit and station auxiliary transformers, interconnecting transformers, and trackside transformers for railways; and rectifier transformers, including six and twelve pulse transformers with IPT, as well as transformers for bridge connection and railway traction. The company also offers distribution transformers, energy efficient transformers, transformers for solar and wind applications, and transformers for mines applications, as well as hermitically sealed and conservator type of construction transformers.

Transformers and Rectifiers (India) Fundamentals Summary

How do Transformers and Rectifiers (India)'s earnings and revenue compare to its market cap?
TRIL fundamental statistics
Market Cap	₹3.82b
Earnings (TTM)	₹139.90m
Revenue (TTM)	₹11.58b

27.3x

P/E Ratio

0.3x

P/S Ratio

Is TRIL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRIL income statement (TTM)
Revenue	₹11.58b
Cost of Revenue	₹9.24b
Gross Profit	₹2.34b
Other Expenses	₹2.20b
Earnings	₹139.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.06
Gross Margin	20.23%
Net Profit Margin	1.21%
Debt/Equity Ratio	89.0%

How did TRIL perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

9%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TRIL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TRIL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TRIL. This is calculated by dividing TRIL's market cap by their current preferred multiple.
What is TRIL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹3.82b

TRIL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	9.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does TRIL's PE Ratio compare to its peers?

TRIL PE Ratio vs Peers

The above table shows the PE ratio for TRIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.7x
522281 Ram Ratna Wires	7x	n/a	₹3.7b
590031 De Nora India	29x	n/a	₹4.5b
532051 Swelect Energy Systems	14.7x	n/a	₹4.8b
517059 Salzer Electronics	12.2x	n/a	₹2.8b
TRIL Transformers and Rectifiers (India)	27.3x	n/a	₹3.8b

Forward PE

Price-To-Earnings vs Peers: TRIL is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (15.7x).

Price to Earnings Ratio vs Industry

How does TRIL's PE Ratio compare vs other companies in the IN Electrical Industry?

Price-To-Earnings vs Industry: TRIL is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the Indian Electrical industry average (19.7x)

Price to Earnings Ratio vs Fair Ratio

What is TRIL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TRIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TRIL's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of TRIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TRIL (₹28.8) is trading above our estimate of fair value (₹0.72)

Significantly Below Fair Value: TRIL is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRIL's PEG Ratio to determine if it is good value.

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Future Growth

How is Transformers and Rectifiers (India) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.7%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Transformers and Rectifiers (India) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Transformers and Rectifiers (India)'s track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Transformers and Rectifiers (India) competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Transformers and Rectifiers (India) performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

1.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRIL has high quality earnings.

Growing Profit Margin: TRIL's current net profit margins (1.2%) are higher than last year (1%).

Past Earnings Growth Analysis

Earnings Trend: TRIL's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: TRIL's earnings growth over the past year (98.2%) exceeds its 5-year average (1% per year).

Earnings vs Industry: TRIL earnings growth over the past year (98.2%) exceeded the Electrical industry 47.6%.

Return on Equity

High ROE: TRIL's Return on Equity (3.9%) is considered low.

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Financial Health

How is Transformers and Rectifiers (India)'s financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TRIL's short term assets (₹9.1B) exceed its short term liabilities (₹6.7B).

Long Term Liabilities: TRIL's short term assets (₹9.1B) exceed its long term liabilities (₹742.3M).

Debt to Equity History and Analysis

Debt Level: TRIL's net debt to equity ratio (76.2%) is considered high.

Reducing Debt: TRIL's debt to equity ratio has increased from 63.4% to 89% over the past 5 years.

Debt Coverage: TRIL's debt is not well covered by operating cash flow (0.6%).

Interest Coverage: TRIL's interest payments on its debt are not well covered by EBIT (1.2x coverage).

Balance Sheet

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Dividend

What is Transformers and Rectifiers (India) current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TRIL's dividend (0.35%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: TRIL's dividend (0.35%) is low compared to the top 25% of dividend payers in the Indian market (1.85%).

Stability and Growth of Payments

Stable Dividend: TRIL's dividend payments have been volatile in the past 10 years.

Growing Dividend: TRIL's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.4%), TRIL's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: TRIL is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Satyen Mamtora (47 yo)

11.17yrs

Tenure

₹4,362,300

Compensation

Mr. Satyen Jitendra Mamtora has been the Managing Director of Transformers & Rectifiers (India) Ltd. since April 28, 2011. Mr. Mamtora served as Joint Managing Director of Transformers & Rectifiers from Ap...

CEO Compensation Analysis

Compensation vs Market: Satyen's total compensation ($USD55.21K) is above average for companies of similar size in the Indian market ($USD38.25K).

Compensation vs Earnings: Satyen's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TRIL's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: TRIL's board of directors are seasoned and experienced ( 12.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31