desidata
20-05-2008, 07:00 AM
Compiled Report
Transformers & Rectifiers India Ltd. (TRIL), formerly known as Triveni Electric Company, is a 13-year old Gujarat-based company established in 1995. Its name was changed to the present one in 1995. The company’s business mainly comprises of manufacturing and selling of various kinds of transformers such as power, distribution transformers, furnace transformers, rectifier transformers and specialised transformers. The company’s two manufacturing facilities are situated at Changodar and Odhav both in Ahmedabad, Gujarat. Jitendra U. Mamtora is the chairman and managing director of the company.The company entered the capital market during December 2007 with its IPO of 29,95,000 equity shares of Rs.10 each at a premium of Rs.455 per share. The issue evoked adequate response from the investing public.
The company acquired the Odhav unit in 2006 as part of its expansion plans. In 2006, TRIL enhanced the production capacity of its plant at Changodar from 4000 MVA p.a. to 6000 MVA p.a. With a view to effectively augment its production capacities, the company has initiated several expansion and de-bottlenecking procedures to facilitate expansion like installation of new winding machines, separate oven for coil drying, segregation of dispatch area along with 100 MT capacity EOT crane etc.
Subsidiaries: During the year, the company acquired 100% stake of M/s. Transweld Mechanical Engineering Works Ltd. and 51% of Transpares Ltd., which are now its subsidiaries.
Expansion: The company has also firmed up an expansion project involving setting up of a new unit at Changodar with a capacity to manufacture transformers up to 400 KV Class in the first phase having an installed capacity of around 8000 MVA p.a. The company has already started implementing the said project, which is targeted to become operational by June 2008. This will increase its production capacity from 7200 MVA to 15200 MVA p.a.
Clientele: TRIL’s clientele includes State Electricity Boards like Gujarat Electricity Board, Tamil Nadu Electricity Board, Rajasthan Electricity Board, Kerala Electricity Board, Karnataka Power Transmission Corporation, Maharashtra State Electricity Board, Himachal Pradesh State Electricity Board, Meghalaya State Electricity Board and Uttar Pradesh Power Corporation. In the private sector, its clientele includes L&T, Chennai, Siemens, ABB, NTPC, NEG-Micon, Areva T&D, Torrent AEC Power, Shah Alloys, Rohit Ferro Tech, Prakash Industries, Suzlon Energy and Jai Balaji Group etc.
Exports: The company exports transformers to Nepal, UAE, Indonesia, Pakistan, Bangladesh, Ghana, Sri Lanka, Kenya, UK, Zimbabwe, Phillipines, Kazakhastan, Dakar (Africa), Saudi Arabia, Australia, Tanzania, Iran, Bhutan, South Africa, Zambia and Azerbaijan.
Performance: For FY07, the company registered net sales of Rs.218 cr. with net profit of Rs.16.66 cr. posting an EPS of Rs.18.23.
Financials: The company has an equity base of Rs.12.92 cr. with a book value of Rs.138.97.
Share Profile: The share of TRIL with a face value of Rs.10 is listed both on the BSE and NSE under the B group. Its share price touched a high of Rs.938.50 and a low of Rs.345.50. At its current market price of Rs.426, it has a market capitalization of about Rs.500 cr. It has a high beta value of 1.5, which implies that it is a stock with high volatility.
Dividends: The company has been paying dividends as shown: 2006-07 - 18%; 2005-06 - 15%.
Shareholding Pattern: The promoters’ holding in the company is 76.82% while the balance 23.12% is held by non-corporate promoters, institutions, mutual funds and the Indian public. Among mutual funds, SBI Magnum, UTI, Canbank, Principal, ING Vysya, Escorts, Birla Sunlife, HDFC, ABN Amro, Tata and JM Financial have added the company’s shares to their different schemes.
Prospects: The company is operating in the high growth infrastructure segment viz. Power Generation and Distribution, which is poised for a sustained, long-term growth. Accordingly the company’s prospects are really bright.
Further, the company has orders worth Rs.308 cr. in hand. It has had prestigious orders from reputed government and non-government bodies.
Conclusion: TRIL is engaged in the high growth and high margin business of power and distribution transformers, which has a very bright future given the Central Government’s mission of ‘power for all by 2012’.
At its current market price , the share is discounted less than 13 times its earning against the industry average P/E multiple of over 30 for the electrical equipment sector. The share is thus cheaply valued comparatively speaking. A few months ago, the TRIL share had been moving at a fast pace but owing to the current downward trend, it has retraced to the present level. In fact, the share is quoting less than its IPO price of Rs.465, which is a 17% discount to its issue price. The share may be added to one’s portfolio on every decline with a medium-to-long-term horizon
Transformers & Rectifiers India Ltd. (TRIL), formerly known as Triveni Electric Company, is a 13-year old Gujarat-based company established in 1995. Its name was changed to the present one in 1995. The company’s business mainly comprises of manufacturing and selling of various kinds of transformers such as power, distribution transformers, furnace transformers, rectifier transformers and specialised transformers. The company’s two manufacturing facilities are situated at Changodar and Odhav both in Ahmedabad, Gujarat. Jitendra U. Mamtora is the chairman and managing director of the company.The company entered the capital market during December 2007 with its IPO of 29,95,000 equity shares of Rs.10 each at a premium of Rs.455 per share. The issue evoked adequate response from the investing public.
The company acquired the Odhav unit in 2006 as part of its expansion plans. In 2006, TRIL enhanced the production capacity of its plant at Changodar from 4000 MVA p.a. to 6000 MVA p.a. With a view to effectively augment its production capacities, the company has initiated several expansion and de-bottlenecking procedures to facilitate expansion like installation of new winding machines, separate oven for coil drying, segregation of dispatch area along with 100 MT capacity EOT crane etc.
Subsidiaries: During the year, the company acquired 100% stake of M/s. Transweld Mechanical Engineering Works Ltd. and 51% of Transpares Ltd., which are now its subsidiaries.
Expansion: The company has also firmed up an expansion project involving setting up of a new unit at Changodar with a capacity to manufacture transformers up to 400 KV Class in the first phase having an installed capacity of around 8000 MVA p.a. The company has already started implementing the said project, which is targeted to become operational by June 2008. This will increase its production capacity from 7200 MVA to 15200 MVA p.a.
Clientele: TRIL’s clientele includes State Electricity Boards like Gujarat Electricity Board, Tamil Nadu Electricity Board, Rajasthan Electricity Board, Kerala Electricity Board, Karnataka Power Transmission Corporation, Maharashtra State Electricity Board, Himachal Pradesh State Electricity Board, Meghalaya State Electricity Board and Uttar Pradesh Power Corporation. In the private sector, its clientele includes L&T, Chennai, Siemens, ABB, NTPC, NEG-Micon, Areva T&D, Torrent AEC Power, Shah Alloys, Rohit Ferro Tech, Prakash Industries, Suzlon Energy and Jai Balaji Group etc.
Exports: The company exports transformers to Nepal, UAE, Indonesia, Pakistan, Bangladesh, Ghana, Sri Lanka, Kenya, UK, Zimbabwe, Phillipines, Kazakhastan, Dakar (Africa), Saudi Arabia, Australia, Tanzania, Iran, Bhutan, South Africa, Zambia and Azerbaijan.
Performance: For FY07, the company registered net sales of Rs.218 cr. with net profit of Rs.16.66 cr. posting an EPS of Rs.18.23.
Financials: The company has an equity base of Rs.12.92 cr. with a book value of Rs.138.97.
Share Profile: The share of TRIL with a face value of Rs.10 is listed both on the BSE and NSE under the B group. Its share price touched a high of Rs.938.50 and a low of Rs.345.50. At its current market price of Rs.426, it has a market capitalization of about Rs.500 cr. It has a high beta value of 1.5, which implies that it is a stock with high volatility.
Dividends: The company has been paying dividends as shown: 2006-07 - 18%; 2005-06 - 15%.
Shareholding Pattern: The promoters’ holding in the company is 76.82% while the balance 23.12% is held by non-corporate promoters, institutions, mutual funds and the Indian public. Among mutual funds, SBI Magnum, UTI, Canbank, Principal, ING Vysya, Escorts, Birla Sunlife, HDFC, ABN Amro, Tata and JM Financial have added the company’s shares to their different schemes.
Prospects: The company is operating in the high growth infrastructure segment viz. Power Generation and Distribution, which is poised for a sustained, long-term growth. Accordingly the company’s prospects are really bright.
Further, the company has orders worth Rs.308 cr. in hand. It has had prestigious orders from reputed government and non-government bodies.
Conclusion: TRIL is engaged in the high growth and high margin business of power and distribution transformers, which has a very bright future given the Central Government’s mission of ‘power for all by 2012’.
At its current market price , the share is discounted less than 13 times its earning against the industry average P/E multiple of over 30 for the electrical equipment sector. The share is thus cheaply valued comparatively speaking. A few months ago, the TRIL share had been moving at a fast pace but owing to the current downward trend, it has retraced to the present level. In fact, the share is quoting less than its IPO price of Rs.465, which is a 17% discount to its issue price. The share may be added to one’s portfolio on every decline with a medium-to-long-term horizon