Transformers And Rectifiers (India) Ltd.
NSE: TARILTransformers And Rectifiers (India) Ltd.: A 30-second snapshot
Transformers and Rectifiers (India) Ltd. (TARIL) is an infrastructure-sector manufacturer of power transformers trading at ₹300.8, down 37.1% over 12 months and 48% below its 52-week high. Trailing PE stands at 34.2 against a sector peer range of 33–109; debt-to-equity of 29.6 is the highest in its peer group, with a rising debt trend. Despite 15.7% revenue CAGR over 5 years, earnings CAGR over the same period is -4.1%, and Q4 FY26 results drew broad negative coverage with intraday declines of 7–12%.
P/E
34.2
Forward P/E
24.3
ROE
+19.3%
Debt / Equity
29.59
Profit Margin
+10.5%
Div. Yield
+0.1%
5Y ROE > 15%
2/5
5Y FCF > 0
2/5
Quality
37/100
News
8 headlines · 0 positive · 8 negative
Transformers and Rectifiers (India) Q4 Results - Mint
Mint
Transformers & Rectifiers tanks 12% on disappointing Q4 results - Business Standard
Business Standard
Transformers and Rectifiers shares tumble over 7% post Q4 results; here's why and what to expect - Business Today
Business Today
Transformers And Rectifiers Shares Tumble In Trade After Q4 Profit Decline - NDTV Profit
NDTV Profit
TARIL shares crash 11% after Q4 results, dividend announcement: What's spooking investors? - The Economic Times
The Economic Times
Recent context
- ·Q4 FY26 results reported in April 2026 showed a decline in profit, triggering 7–12% intraday share price drops across multiple sessions as covered by Business Standard, Economic Times, NDTV Profit, and Business Today.
- ·The stock has recovered 6.67% over the past 3 months from its lows and is now marginally above the 50-DMA (₹298.82), with resistance levels at ₹328.68, ₹343.70, and ₹358.
- ·With only 3 analysts covering the stock and no consensus rating available, sell-side guidance is limited; forward PE of 24.3 vs trailing PE of 34.2 implies analyst models price in earnings improvement, though the reliability of those estimates is harder to assess with sparse coverage.
Strengths
- +Revenue growth of 15.7% 5-year CAGR indicates sustained topline expansion in a sector benefiting from India's power-infrastructure capex cycle.
- +PE of 34.2 is the second-lowest among the 6 peers in the infrastructure sector, where comparables trade between 33 (L&T) and 109 (CG Power), suggesting a relative valuation discount.
- +ROE of 19.33% is the second-highest among peers with available ROE data (L&T: 16.95%, CG Power: 19.56%), indicating capital employed is generating competitive returns at this point in time.
- +Forward PE of 24.3 vs trailing PE of 34.2 implies sell-side models are incorporating earnings improvement in FY27, a 29% forward discount to the current multiple.
Weaknesses
- −Debt-to-equity of 29.6 is extremely elevated for a non-financial infrastructure equipment company, with a rising debt trend that amplifies earnings sensitivity to interest rate and order-cycle fluctuations.
- −5-year earnings CAGR of -4.1% despite 15.7% revenue CAGR: profits have shrunk over 5 years in absolute terms, with FCF positive in only 2 of available historical years and ROE above 15% in only 2 years.
- −Quality score of 32/100 ranks 4th of 6 infrastructure peers, and consistency score of 59/100 reflects irregular earnings; all 8 recent news items carry negative sentiment tied to Q4 FY26 profit decline.
- −Price is 48% below its 52-week high and has underperformed over 12 months (-37.1%), remaining 17% below the 200-DMA at ₹363.87 with no sustained recovery signal in the longer-term trend.
Open questions
- ?Does the 29.6 debt-to-equity ratio reflect project-finance structures typical in power equipment contracts, or does it represent balance-sheet leverage that persists independently of order execution?
- ?Is the gap between 15.7% revenue CAGR and -4.1% earnings CAGR driven primarily by rising interest costs on the elevated debt, or by raw-material cost inflation or pricing pressure in transformer contracts?
- ?What portion of the order book is tied to government utilities versus private capex, and how does that mix affect payment cycles, working capital, and the debt level?
- ?If Q4 FY26 represents a one-quarter earnings miss tied to execution timing, what would a normalised earnings trajectory look like relative to the current PE of 34.2 and forward PE of 24.3?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| TARIL | Transformers And Rectifiers (India) Ltd.You're viewing | 34.2 | +19.3% | 32 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹300.80
SMA 50
₹298.82
SMA 200
₹363.87
RSI (14)
46.2 (neutral)
From 52w high
-48.0%
1Y return
-37.1%
3M return
+6.7%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 29.6 is exceptionally elevated for an infrastructure equipment manufacturer; debt trend is rising, meaning interest costs could further compress already-thin margins if revenue growth slows.
- highPrice is 37.1% lower over 12 months and 48% below the 52-week high; the stock has traded below its 200-DMA (₹363.87) since mid-2025 and remains 17% beneath it at the current price of ₹300.8.
- medium5-year earnings CAGR is -4.1% despite 15.7% revenue CAGR, indicating that costs or interest burden are absorbing revenue growth rather than converting to profit. Profit margin stands at 10.54%.
- mediumROE exceeded 15% in only 2 of the available historical years; FCF was positive in only 2 years; consistency score is 59/100 and quality score is 32/100, ranking 4th of 6 peers in the infrastructure sector.
- mediumAll 8 recent news articles carry negative sentiment, concentrated around Q4 results in which profit declined sharply, with headlines citing a 7–12% single-day share price drop on results day.
- lowAnalyst rating is null with coverage from only 3 analysts, making consensus signals unreliable; sector peer data shows null priceChange1Y for all 5 peers, limiting relative price-performance comparison.
Cross-section contradictions
- Revenue grew at a 15.7% 5-year CAGR while earnings CAGR over the same period is -4.1%, suggesting rising debt servicing costs or margin erosion are fully offsetting topline expansion.
- Price has risen 6.67% over the past 3 months and is now marginally above the 50-DMA (₹298.82), yet remains 48% below the 52-week high and 17% below the 200-DMA — a short-term uptick embedded within a sustained longer-term decline.
- Forward PE of 24.3 implies the market is pricing in an earnings recovery relative to the trailing PE of 34.2, but Q4 results triggered double-digit intraday declines and all recent news is negative, creating a tension between forward estimates and recent reported data.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days