From Penny to Powerhouse: TRIL’s ₹1.5 Crore Journey

-By Nikitha Thota

Transformers and Rectifiers (India) Ltd (TRIL), one of the leading players in the capital goods industry, has shown spectacular growth over the last five years. An investment of ₹1 lakh in TRIL shares in April 2020 would have grown to around ₹1.50 crore as of April 2025, indicating the company’s stellar performance and the potential of timely investments in the share market. 

Company Overview

Incorporated in 1994, Transformers and Rectifiers (India) Ltd is an expert in power and distribution transformer manufacturing, supplying both domestic and global markets. The company has continually diversified product offerings and augmented manufacturing capacities, making it a strong player in the capital goods sector. making it a strong player in the capital goods sector.

Stock Performance

In April 2020, the share of TRIL was trading at around ₹3.45. As of December 2024, the stock price had jumped to an all-time high of ₹1,148, registering a growth of more than 33,000% over this duration. This massive growth turned an investment of ₹1 lakh into around ₹3.3 crore. Even after this peak, the stock continued to have a good performance. From March 2025, the share price stood at approximately ₹519, still well above its April 2020 level. This consistent growth highlights the company’s sound market standing and mainly its financial health. 

Financial Performance

TRIL's financial performance has followed its stock performance, reflecting significant improvements in all key indicators.

• Revenue Growth: The revenue of the company has witnessed a steady upward growth, rising from ₹1,128.98 crore in FY2022 to ₹1,273.31 crore in FY2024, reflecting a compound annual growth rate (CAGR) of about 6.4%.

• Profitability: Net profit rose from ₹15.6 crore in the December 2023 quarter to ₹55 crore in the December 2024 quarter, a year-on-year growth of more than 250%.

• EBITDA Margin: The Earnings Before Interest, Taxes, Depreciation, and Amortization. The margin has increased from 10.07% in March 2024 to 15.95% in December 2024, indicating improved operating efficiency.

Shareholding Trend Overview:

Transformers & Rectifiers (India) Ltd. experienced steady growth in institutional investor appetite. Mutual Fund holdings grew from zero or close to it in late 2023 to more than 6% in March 2025. Foreign Institutional Investors (FIIs) also increased their holding considerably to 11.33% in March 2025. The promoter holding has been constant at about 64%, although a minor portion of promoter shares is still pledged. This rising trend in MF and FII holdings is an indication of increasing market optimism about the company's future performance.

Macroeconomic Drivers of TRIL's Explosive Growth

Macroeconomic trends that defined India's industrial landscape during 2020-2025. Some of the major economic tailwinds that propelled this penny stock to a multi bagger are discussed below:

India's infrastructure boom and growing power demand provided a solid basis for TRIL's stellar growth. Initiatives by the government such as the National Infrastructure Pipeline (NIP), Revamped Distribution Sector Scheme (RDSS), and the "Make in India" policy boosted capital goods demand in a significant way. Concomitantly, rising urbanization, rural electrification schemes, and the increase in renewable energy projects resulted in a spurt in electricity demand, propelling demand for grid-related products such as transformers. TRIL, as one of the largest players in this space, therefore benefited automatically from the higher capex in spaces such as power transmission, metro projects, and industrial electrification.

Post-COVID economic recovery, favorable money policy, and changing investor psychology further fueled the momentum of TRIL. Strong GDP bounce back in India, stabilizing raw material prices, and the low-interest rate policy of the RBI provided a conducive environment for capital-intensive enterprises. TRIL experienced better margins in this period. At the same time, a retail investing surge, driven by increased financial literacy, online platforms, and increasing demand for small-cap propositions, fueled interest in TRIL as a high-potential, low-cost stock. Global trade tailwinds and India's energy transition, driven by ESG considerations, also created new export opportunities, supporting the company's long-term growth trajectory.

Investment Considerations

Although TRIL's growth has been remarkable, prospective investors must consider the following: 

• Volatility: The company has witnessed dramatic price swings, and investment should be done with caution after thorough analysis.​

• Market Conditions: Global economic conditions and sector-specific trends may influence TRIL's performance.​

• Company Performance: Ongoing monitoring of TRIL's financial performance and strategic moves is necessary.​

Conclusion

Transformers and Rectifiers (India) Ltd.’s stunning share price growth in the past five years is a prime example of what one can reap from timely investments in growth stocks. However, investors need to make proper research and study the market conditions prior to investing. While the stock's meteoric growth highlights the way small-cap and penny stocks can generate a fortune, investments in such stocks also involve more risk and volatility. Growth in the future will be driven by the company's capacity to maintain margins, win new orders, and steer through global economic risks. For long-term investors, spotting such hidden gems in the early stages supported by robust fundamentals and macro tailwinds can prove to be a game-changer. Still, it is important to remain diversified and attack high-return bets with a structured risk management plan.