TRIL: Over 4500% return in less than 4 years! Nuvama sees more upside in this small-cap stock
Transformers & Rectifiers India have been a goldmine for investors, as they have been delivering consistent returns with each passing year. The shares, which were trading at a value of ₹6.95 apiece in April 2020, have zoomed 4633% to trade at the current value of ₹330 apiece. Each year since CY20, the stock has yielded returns of over 50%, with CY23 seeing the highest yearly gain at 314%.
As of CY24, it's already up by 43%. Notably, on January 25, it reached a new all-time high of ₹397.30 apiece. Looking ahead, the stock is anticipated to continue its winning streak, with projections from brokerage firm Nuvama Institutional Equities suggesting it could surpass the ₹550 mark.
Also Read: Suzlon Energy, Inox Wind shares down up to 30% from 52-week highs; is now a good time to buy? In its latest note, the brokerage has initiated coverage on the stock with a 'buy' rating and set a target price of ₹575 apiece, which reflects an upside of 74% from the stock's latest closing price. The brokerage's optimistic outlook on the company is fueled by the increasing demand for transformers, driven by the expansion of renewable and thermal power capacity to meet the growing energy needs of the country. "As India continues to grow its manufacturing base from 17% of GDP to 25% targeted by FY25/26E, the focus on urbanisation, electrification, and digital automation, would all result in power demand growing by 6–7% over this decade, not to forget optionality from railways, industrial corridors, mining, and green hydrogen, among others.
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