Recent Price Movement and Market Context
On 28 Nov 2025, Transformers & Rectifiers India’s stock recorded an intraday low of Rs.277.05, reflecting a 2.31% decline during the trading session. The stock underperformed its sector by 1.35% and closed the day down by 1.83%. This marks the lowest price level for the stock in the past year, with the 52-week high standing at Rs.650.23, highlighting the extent of the downward movement.
The stock’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure. This technical positioning suggests that the stock has been facing consistent selling interest over recent weeks.
In contrast, the broader market index, the Sensex, opened flat and traded marginally lower by 0.01% at 85,709.43 points. The Sensex remains approximately 0.4% below its 52-week high of 86,055.86 and is trading above its 50-day and 200-day moving averages, signalling a generally positive market environment despite the stock’s weakness.
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One-Year Performance and Valuation Metrics
Over the last twelve months, Transformers & Rectifiers India has recorded a total return of -42.89%, significantly underperforming the Sensex, which has delivered a positive return of 8.43% over the same period. This divergence highlights the stock’s relative weakness within the heavy electrical equipment sector and the broader market.
The company’s price-to-book value stands at 6.3, which is considered relatively high, especially when compared to its peers’ average historical valuations. Despite this, the stock is currently trading at a discount relative to those valuations, reflecting the market’s cautious stance.
Return on equity (ROE) for the company is reported at 18.4%, indicating a moderate level of profitability relative to shareholder equity. Meanwhile, the price-to-earnings-to-growth (PEG) ratio is 0.3, suggesting that the stock’s valuation is low relative to its earnings growth rate.
Financial Results and Profitability Indicators
The company’s quarterly profit after tax (PAT) was Rs.33.91 crores, representing a decline of 25.1% compared to the previous quarter. Operating profit to interest coverage ratio for the quarter is at 4.00 times, which is the lowest recorded level, indicating tighter margins for servicing debt obligations.
Dividend payout ratio (DPR) for the year is at 2.80%, also the lowest in recent periods, reflecting a conservative approach to shareholder returns amid the current financial environment.
Despite these figures, the company has demonstrated healthy long-term growth trends, with net sales increasing at an annual rate of 27.37% and operating profit growing at 51.01% per annum. These figures suggest that while short-term profitability has faced headwinds, the underlying business has expanded steadily over time.
Shareholding and Sectoral Positioning
Promoters remain the majority shareholders of Transformers & Rectifiers India, maintaining significant control over the company’s strategic direction. The company operates within the heavy electrical equipment industry, a sector that has experienced mixed performance amid fluctuating demand and competitive pressures.
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Comparative Market Performance
While the BSE500 index has generated returns of 5.84% over the past year, Transformers & Rectifiers India’s stock has lagged considerably, reflecting challenges in maintaining market confidence. The stock’s underperformance relative to both the broader market and its sector peers underscores the cautious sentiment prevailing among market participants.
The Sensex’s current position above its 50-day and 200-day moving averages contrasts with the stock’s position below all major moving averages, highlighting the divergence between the company’s share price trajectory and the overall market trend.
Summary of Key Financial Indicators
To summarise, Transformers & Rectifiers India’s recent financial and market data reveal a stock that has experienced notable price declines, culminating in a 52-week low of Rs.277.05. The company’s quarterly earnings show a contraction in profit after tax and reduced interest coverage, while dividend payouts have also moderated.
Nevertheless, the company’s long-term sales and operating profit growth rates remain robust, suggesting underlying business expansion despite near-term pressures. The stock’s valuation metrics indicate a relatively expensive price-to-book ratio, yet a low PEG ratio, reflecting a complex valuation scenario.
Market conditions for the stock remain challenging, with technical indicators signalling continued downward momentum. However, the broader market environment remains relatively stable, with the Sensex trading near its yearly highs.
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