At a Glance

Transformers and Rectifiers (India) Ltd (TARIL) just secured a juicy export order worth $16.6 million (₹139 Cr) from Jindal Energy Botswana for 12 industrial transformers. That’s more than 20% of its FY24 revenue in one go. For a company that used to be electrifying only domestically, this sparks global credibility… and maybe even a rerating.

🔌 1. What Just Happened?

📦 Order Size: USD 16.6 million (~₹139 Cr)
🌍 Client: Jindal Energy Botswana Pvt Ltd
📅 Execution Timeline: Delivery in FY26
🏗️ Product: 12 heavy-duty transformers (custom mix)

No related party angle. No backdoor favoritism. No shady Mauritius fund.
Just one good old-fashioned international industrial contract.

This is TARIL’s first big African export in years, and it sets the stage for more cross-border wins.

🧮 2. Context: What Does TARIL Even Do?

TARIL = Transformers + Rectifiers = 💡Power Infra Backbone

🧠 Their USP?

• Customised large-capacity design
• Multi-sector client base (power, steel, infra, railways, energy)
• 3 manufacturing plants around Ahmedabad
• Installed capacity: 22,000 MVA/year (2nd largest in India)

📉 3. Financials: The Voltage Has Been Fluctuating

📌 FY24 Highlights:

• Margins fell vs FY23
• Order book still robust (~₹900 Cr+)
• Exports = just 8% of revenue → this Botswana deal alone may double that!

🔍 4. So What Does This Order Change?

Let’s run the math:

🧾 Order Value: ₹139 Cr
🪙 FY24 Revenue: ₹1,142 Cr
🔢 Order/Rev Ratio: ~12.2%

That’s like HUL getting a ₹7,500 Cr single order.
Okay, not quite. But you get the scale.

Even better:

• International orders bring higher margins
• Global deliveries open doors for future EPC clients
• May push EBITDA margins back towards 10%+

🔧 5. Peer Comparison: Who Else Makes Transformers?

TARIL is still a small-cap local champ trying to go global.
But if it keeps bagging such orders, valuation multiples could transform too.

💼 6. Promoters & Ownership

• Promoters: 74.8%
• Public: 25.2%
• FIIs + DIIs: <1% 😬
  (Maybe that changes post this export?)

👨‍💼 CFO Chanchal Rajora and the board have publicly reaffirmed focus on:

• Export pipelines
• Profitability in high-voltage segments
• Capital discipline (no wild debt jumps)

📈 7. Stock Check: What’s the Buzz?

• CMP: ₹157
• 52W High/Low: ₹168 / ₹61
• 1Y Return: 134% 🚀
• Market Cap: ₹1,320 Cr
• P/E: ~22
• Book Value: ₹51 → P/B = 3.0x

So what’s priced in?

🔋 Not the Botswana order (came after FY25 closed)
🔋 Not export growth trend (still early innings)
🔋 Not margin revival hopes (below 10% in FY24)

🧠 Fair Value Estimate 🧮

Let’s say:

• FY26 EPS = ₹10 (assuming ₹60 Cr PAT, which is ~4x FY24)
• Assign P/E of 25 (mid-cap infra avg)

→ Fair Value = ₹250/share

✅ Conservative Range: ₹200–₹250
📌 Current: ₹157
📉 Implied Upside: 27%–60% (if things go right)

🔚 Final Thoughts: Time to Plug into TARIL?

TARIL used to be an underdog in the power infra space —
Then it delivered 2x stock return in 12 months.
Now it’s gone global with a mega Botswana order.

So here’s the situation:

• Earnings? Improving
• Exports? Beginning
• Margins? Waiting
• Valuation? Still below Voltamp

This might just be “TARIL 2.0: Electrified and Export-Ready.”
If they can deliver this order on time and profitably,
this stock may light up more than just African substations.

✍️ Written by Prashant | 📅 June 21, 2025
Tags: Transformers and Rectifiers, TARIL, Jindal Energy Botswana, Power Infra, Transformer Export, Electrical Equipment Stocks, Infra Orders, Smallcap Stocks, EduInvesting