At a Glance

Transrail Lighting Ltd is up over 65% from its 52-week lows, and no, it doesn’t sell tube lights at your kirana store. This power infra player builds everything from monopoles to entire transmission lines. With 27% PAT CAGR, 30%+ ROCE, and a negative working capital cycle, Transrail might just be the industrial multibagger people missed while chasing Suzlon memes.

1. 🎯 Introduction with Hook

When a company called Transrail Lighting is lighting up portfolios but pays zero dividends, it’s time to investigate. Is this just another infra hype stock with big orders and bigger debt? Or a genuine, profitable, scale-ready B2G (business-to-government) machine?

Spoiler: It’s surprisingly clean. But is it fairly priced?

2. ⚙️ Business Model – WTF Do They Even Do?

Transrail Lighting Ltd (TRLL) is a power transmission infra EPC + monopole manufacturing company.

• Builds transmission lines (from 66kV to 765kV)
• Manufactures:
  • Monopoles (those sleek electric poles)
  • Lattice towers for transmission
  • Conductors
• Also executes railway electrification and smart infra projects
• Certified with every ISO and NABL tag that looks impressive on investor decks

Clients: State electricity boards, railways, large EPC contractors. The business is boring. But the execution is… shockingly efficient.

3. 💰 Financials Overview – Profit, Margins, ROE, Growth

Highlights:

• 5Y Profit CAGR: 27% ✅
• 5Y Revenue CAGR: 23% ✅
• Zero dividend payout ❌ but reinvestment makes sense (for now)

4. 📊 Valuation – Is It Cheap, Meh, or Crack?

• CMP: ₹634
• Market Cap: ₹8,500 Cr
• P/E: 26x
• Book Value: ₹140 → P/B = 4.5x
• ROE: 21.6%

📉 Fair Value Range (EduCalc):

Let’s take FY25 PAT = ₹327 Cr
Assume 20–24x PE (infra + growth premium)

FV = ₹6540 Cr to ₹7848 Cr
➤ FV per share (based on 13 Cr shares): ₹503 to ₹605

⚠️ Current Price: ₹634 = Slightly Overvalued

So unless growth accelerates further or capex orders spike, there’s no deep margin of safety here.

5. 🍛 What’s Cooking – News, Triggers, Drama

• Hosted analyst meets + plant visits in June 2025 — classic “marketing before placement” move?
• Appointed Mr. Indu Shekhar Jha as Independent Director — ex-PowerGrid head
• In talks for more international orders (Africa, SE Asia)
• Getting increasing smart city contracts and railway electrification jobs

Basically, order book visibility is strong. But execution speed is key.

6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?

✅ Healthy balance sheet
✅ No dangerous debt levels
❌ Some large other liabilities (~₹3,700 Cr) likely include payables and project advances

7. 💸 Cash Flow – Sab Number Game Hai

• Huge capex in FY25 (~₹500 Cr) — either expansion or factory upgrade
• Still positive net cash flow. No red flag.

8. 📉 Ratios – Sexy or Stressy?

Negative working capital cycle is impressive. Suppliers fund the operations.

9. 💵 P&L Breakdown – Show Me the Money

FY25:

• Revenue: ₹5,308 Cr
• EBITDA: ₹673 Cr
• Net Profit: ₹327 Cr
• EPS: ₹24.3
• Operating Leverage: Clearly kicking in — revenue grew 30%, but PAT up 40%

Margins are stable and slightly improving — suggesting pricing power or cost control.

10. 🕵️ Miscellaneous – Shareholding, Promoters, KMP

• Promoter Holding: 71.12%
• DII: 14.08%
• FII: 0.61% (lol)
• Public: 14.2%
• Shareholders: 1.3 lakh+

🧑‍💼 Key Management:

• No scandals or resignations
• Recent board induction suggests governance upgrade attempts

11. 🧠 EduInvesting Verdict™

✅ What We Like:

• Strong revenue & profit growth
• Clean balance sheet
• Negative working capital
• High ROCE + scalable product

❌ What’s Meh:

• No dividends
• Valuation stretched
• Execution + order inflow must be consistently high

📉 Fair Value Range: ₹503–₹605
📈 CMP: ₹634

🤔 So… good company, decent growth — but stock is already reflecting a lot of optimism.

✍️ Written by Prashant | 📅 26 June 2025

Tags: Transrail Lighting, transmission infra, monopoles, high ROCE stocks, infra EPC, undervalued PSU alternatives, power infra stocks, eduinvesting, fair value analysis, SME multibagger