Transformers And Rectifiers (India) Ltd.
ISIN: INE763I01026 • Market Cap: ₹8,748 Cr
The 5-Pillar Quality Audit for Transformers And Rectifiers (India) Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (15.2%), Return on Capital Employed (24.2%), and equity compounding (17.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.23 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (22.3%) and 3Y PAT CAGR (87.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 33.83 vs PEG of 1.57 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 64.4%, backed by 9.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 24.2%)
Transformers And Rectifiers (India) Ltd. generates exceptional return on capital employed of 24.2%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 22.3%)
Revenue has expanded at 22.3% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 87.6%)
Net earnings have compounded at 87.6% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking TARIL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 77/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare TARIL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Transformers And Rectifiers (India) Ltd. (TARIL)Current | 77/100 | ₹8,748 Cr | 33.83 | 24.2% | 0.23 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Transformers And Rectifiers (India) Ltd.
Q:What is the 5-Pillar Fundamental Score for Transformers And Rectifiers (India) Ltd. (TARIL)?
Transformers And Rectifiers (India) Ltd. has a RupeeTools Fundamental Score of 77/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (77/100), Financial Health (81/100), Growth (92/100), Valuation (62/100), and Ownership Quality (68/100).
Q:Is TARIL fundamentally strong for long-term investment?
Yes, TARIL exhibits solid fundamental strength with a 77/100 score, driven by a return on equity of 17.1% and a debt-to-equity ratio of 0.23.
Q:Does TARIL pass the Coffee Can Investing filter?
Yes! TARIL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does TARIL compare against other Capital Goods peers?
Within India's Capital Goods sector, TARIL trades at a P/E of 33.83 and generates an ROCE of 24.2%. Compare its 5-Pillar score of 77/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.