Transformers and Rectifiers (India) Limited (TARIL) AI Stock Analysis

• Market Cap: ₹151.37B
• Dividend Yield: 0.04%
• Average Volume (3M): 109.63K
• Price to Earnings (P/E): 59.2
• Beta (1Y): 0.94
• Revenue Growth: 52.40%
• EPS Growth: 221.33%
• Country: IN
• Employees: 553
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.20
• Shares Outstanding: 300,165,830
• 10 Day Avg. Volume: 61,560
• 30 Day Avg. Volume: 109,633
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹549.00
• Price Target Upside: 8.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ₹549.00 ▲(8.86% Upside)

The overall stock score reflects strong financial performance with notable revenue growth and profitability. However, liquidity concerns due to negative free cash flow and a high P/E ratio indicating overvaluation weigh on the score. Technical indicators suggest a neutral market position.

Positive Factors

Revenue Growth

The strong revenue growth of 59.37% indicates robust demand for TARIL's products and effective market penetration, enhancing its competitive position.

Profitability

Improved profit margins reflect efficient cost management and pricing power, contributing to sustainable long-term profitability.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future growth investments.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests that capital expenditures exceed cash generated from operations, potentially impacting liquidity and future investments.

Cash Conversion

The lower cash conversion ratio indicates that not all earnings are translating into cash, which could affect the company's ability to fund operations and growth.

Increasing Liabilities

Rising liabilities could strain the company's financial resources and necessitate careful management to avoid potential solvency issues.

Transformers and Rectifiers (India) Limited Business Overview & Revenue Model

Company Description

Transformers and Rectifiers (India) Limited (TARIL) is a leading manufacturer in the Indian electrical equipment sector. The company specializes in the production of a wide range of transformers, including power transformers, distribution transformers, furnace transformers, rectifier transformers, and specialty transformers. With a focus on quality and innovation, TARIL serves various industries such as power generation, transmission, and distribution, as well as industrial sectors requiring specialized electrical solutions.

How the Company Makes Money

TARIL generates revenue primarily through the sale of its transformers and related electrical equipment. The company's key revenue streams include contracts and orders from utility companies, industrial clients, and infrastructure projects that require customized transformer solutions. TARIL also earns income from providing after-sales services and maintenance to its customers, ensuring the longevity and efficiency of their electrical systems. Significant partnerships with government bodies and private enterprises contribute to TARIL's earnings by establishing long-term contracts and repeat business opportunities. Additionally, the company's focus on research and development allows it to offer innovative products that meet the evolving demands of the electrical industry, thereby enhancing its competitive position and financial performance.

Transformers and Rectifiers (India) Limited Financial Statement Overview

Summary

Transformers and Rectifiers (India) Limited shows strong revenue growth and profitability with improved margins. The balance sheet is solid with a low debt-to-equity ratio. However, cash flow management is a concern due to negative free cash flow, which could impact liquidity.

Income Statement

Transformers and Rectifiers (India) Limited has demonstrated strong revenue growth with a significant increase from ₹12,672.69 million in 2024 to ₹20,193.80 million in 2025, marking a 59.37% growth rate. Gross profit and net profit margins have improved to 31.43% and 10.60% respectively, showcasing enhanced profitability. The EBIT and EBITDA margins have also shown strength, standing at 14.87% and 17.94%, indicating efficient operational performance.

Balance Sheet

The company has a solid equity base with a debt-to-equity ratio of 0.23, reflecting prudent leverage management. Return on equity has improved to 17.11%, highlighting effective use of equity in generating profits. The equity ratio is at 57.31%, indicating a strong capital structure with more than half of the assets financed by equity. However, the increase in total liabilities requires monitoring to maintain financial stability.

Cash Flow

Operating cash flow has improved, but free cash flow remains negative at ₹-782.20 million, signaling potential cash flow challenges. The operating cash flow to net income ratio is at 0.73, suggesting that earnings are not fully converting to cash. The free cash flow to net income ratio is negative, indicating that capital expenditure exceeds operating cash flow, which could impact future cash reserves if not addressed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.61B	20.19B	12.67B	13.73B	11.45B	7.33B
Gross Profit	3.91B	6.35B	3.40B	2.78B	2.05B	1.76B
EBITDA	1.68B	3.62B	1.27B	1.20B	734.01M	677.56M
Net Income	771.97M	2.14B	444.97M	407.38M	139.87M	70.59M
Balance Sheet
Total Assets	0.00	21.85B	11.68B	11.86B	11.09B	9.25B
Cash, Cash Equivalents and Short-Term Investments	69.91M	4.17B	53.34M	52.49M	122.47M	11.23M
Total Debt	0.00	2.83B	2.56B	3.30B	3.25B	2.64B
Total Liabilities	0.00	9.13B	6.05B	7.85B	7.46B	5.75B
Stockholders Equity	5.63B	12.52B	5.54B	3.93B	3.57B	3.43B
Cash Flow
Free Cash Flow	250.40M	-782.20M	133.09M	181.06M	-66.28M	904.35M
Operating Cash Flow	250.40M	1.57B	291.43M	283.89M	18.92M	964.30M
Investing Cash Flow	0.00	-4.72B	-224.38M	91.62M	-80.11M	-69.62M
Financing Cash Flow	0.00	5.09B	-98.47M	-448.79M	172.13M	-930.84M

Transformers and Rectifiers (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 504.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARIL, the sentiment is Positive. The current price of 504.3 is above the 20-day moving average (MA) of 501.71, above the 50-day MA of 503.22, and above the 200-day MA of 496.08, indicating a bullish trend. The MACD of -0.69 indicates Negative momentum. The RSI at 56.39 is Neutral, neither overbought nor oversold. The STOCH value of 52.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TARIL.

Transformers and Rectifiers (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	75 Outperform	₹72.11B	23.31		1.33%	12.05%	-3.13%
BBL	70 Outperform	₹34.74B	24.72		1.14%	10.30%	5.81%
INDOTECH	69 Neutral	₹18.83B	24.41		―	40.81%	56.69%
Sector *	65 Neutral	$2.70B	14.70	12.10%	3.45%	2.94%	43.39%
TARIL	63 Neutral	₹151.37B	59.22		0.04%	52.40%	221.33%
HIRECT	60 Neutral	₹29.09B	69.05		0.12%	32.24%	144.50%
KECL	50 Neutral	₹8.09B	362.57		―	-5.35%	-84.27%

Transformers and Rectifiers (India) Limited Corporate Events

Transformers and Rectifiers (India) Limited to Participate in Investor Conference

Transformers and Rectifiers (India) Limited announced its participation in the ‘Antique Flagship Investor Conference’ in Mumbai on August 21, 2025. This event, organized by Antique Broking Limited, will include group and one-on-one meetings, providing an opportunity for TARIL to engage with investors and stakeholders. The company has assured that no unpublished price-sensitive information will be shared during the meetings.