From ₹8 to ₹948: Multibagger penny stock turns ₹1 lakh into ₹1.18 crore in 5 years

Multibagger penny stock: Transformers & Rectifiers India shares have soared 1,169% in two years and 11,725% in five years. The company's growth is driven by strong order wins, financial growth, and increasing power demand, alongside strategic expansions in renewables and exports.

Updated27 Jan 2025, 11:05 AM IST

From <span class='webrupee'>₹</span>8 to <span class='webrupee'>₹</span>948: Multibagger penny stock transforms <span class='webrupee'>₹</span>1 lakh into <span class='webrupee'>₹</span>1.18 crore in 5 years. — From ₹8 to ₹948: Multibagger penny stock transforms ₹1 lakh into ₹1.18 crore in 5 years. **(Pixabay)**

Multibagger penny stock: Transformers & Rectifiers India (TRIL), one of the leading manufacturers of transformers in India, has witnessed a remarkable surge in its share price over recent years, consistently breaking record highs and achieving significant milestones.

Notably, it has demonstrated a strong ability to recover quickly after dips, often bouncing back with increased momentum, leading to substantial returns for its shareholders.

Over the last two years, the company's shares have climbed from ₹74.50 to the current trading price of ₹946, representing a gain of 1,169%. Over the last five years, the stock has delivered even more impressive returns, rising from ₹8 to its current level, marking a gain of 11,725%.

If an investor had invested ₹1 lakh in the shares at the start of this period and held onto the investment until today, the value would have surged to an impressive ₹1.18 crore in five years.

Also Read | Dharmesh Shah recommends THIS stock to buy today - 27 January 2025

The impressive surge in Transformers & Rectifiers' share price is driven by strong order wins, robust financial growth, and rising power demand in India. Additionally, the company is capitalising on the expansion of hydrogen energy capacity, increasing inquiries for its products, and a steady inflow of orders from both domestic and international markets.

In recent years, the transformer industry has revived substantially, largely due to several factors such as the government’s capex plans, capacity additions in power plants in India and worldwide, and major infrastructure developments. These factors have provided a much-needed boost to transformer manufacturers like TRIL, resulting in a growing order book.

During the December ending quarter (Q2FY25), the company secured new orders worth ₹631 crore and has an unexecuted order book of ₹3,686 crore, as per the company's earnings filing. Additionally, it stated that ₹19,000 crore worth of inquiries are under negotiation.

Also Read | Multibagger stock Voltamp Transformers shares doubles investors’ money in 2024

TRIL serves a wide range of sectors, including power generation, transmission and distribution, railways, renewable energy, infrastructure, industrial manufacturing, and more. The company has a strong domestic market presence in India and has successfully expanded its footprint globally, exporting products to various countries in Asia, Africa, the Middle East, and beyond.

Its diverse product range includes power transformers up to 500 MVA & 1200 kV Class, furnace transformers, rectifiers, and distribution transformers, as well as specialty transformers.

5 game-changing strategies

The company in FY24 has initiated the implementation of five key strategies within the organisation: expansion of capacity in the renewable segment, increased focus on exports, achieving full backward integration, optimising operational excellence and resource mobilisation, and embracing technological advancements, as per the company's latest annual report.

It aims to capitalise on the growing demand in the renewables sector. The requirement for specialised renewable transformers is expected to increase manifold in the future, and the company said it is well-positioned and possesses the required technical know-how and design expertise to provide engineered solutions to the sector demand.

Also Read | Share of renewables in India’s energy mix to remain stable at 21 pc in FY25: Ind-Ra

In terms of exports, the company stated that it is developing a roadmap to enhance its position and presence in the export market. It aims to increase revenue contribution from exports to 25% over the next two years.

Regarding backward integration, the company emphasised its focus on becoming fully backward integrated within the next two years. It said that while a significant level of backward integration is already in place, the plan is to extend this to critical components.

The company is also focusing on optimising its plants and operations, rationalising costs, and mobilising resources to benefit from the operational efficiencies derived from these efforts. It expressed confidence in achieving better profitability through improved operational efficiencies.

Also Read | Transformers And Rectifiers In Q3 Results 2025 on 09 Jan, 2025: profit rise by 251.35% YOY, profit at ₹54.74 crore and revenue at ₹559.36 crore

The company remains committed to continually upgrading its technology and design capabilities to maintain its niche as one of the only transformer manufacturers producing high-voltage class transformers across diverse product categories, catering to multiple end-use industry applications.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:27 Jan 2025, 10:37 AM IST

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