Synopsis: The Shares of a small-cap company are in focus after reports that Goldman Sachs India reduced its stake in the transformer manufacturer during Q4, lowering holdings to 1.2% in March 2026 from 1.5% in December 2025.
The shares of a Small-Cap company specialising in the design, manufacturing, and supply of a wide range of high-performance power, furnace, and rectifier transformers are in focus after Goldman Sachs India trimmed its stake during the Q4 quarter.
With a market capitalization of Rs. 9,725.37 crores in the day’s trade, the shares of Transformers and Rectifiers (India) Ltd rose upto 1.68 percent, making a high of Rs. 325.40 per share compared to its previous closing price of Rs. 320.00 per share.
What Happened
Transformers and Rectifiers (India) Ltd, engaged in the design, manufacturing, and supply of a wide range of high-performance power, furnace, and rectifier transformers, are in focus after Goldman Sachs India Limited has trimmed its stake in the company.
Looking at the trend over time, their stake was higher in December 2024 at 2.6%, then gradually declined through 2025 (around 2.6% to 2.0% and then to 1.5%), and has now come down to 1.2% in March 2026. This indicates a consistent reduction in their position over the past year.
From December 2025 (1.5 percent) to March 2026 (1.2 percent), they reduced their holding by 0.3 percent, reflecting a modest sell-off in the latest quarter while still maintaining a significant quantity of shares.
They currently hold 3,630,071 shares of Transformers & Rectifiers, with a total holding value of Rs. 112.7 crore. As of March 2026, their holding stands at 1.2 percent, showing a slight decrease of 0.3 percent, which is approximately Rs. 26.75 crore compared to the previous period.
From March 2025, FIIs have continuously reduced their stake in the company, declining from 11.33% to 8.33% as of March 2026. Similarly, DIIs have also decreased their shareholding, falling from 7.22% in March 2025 to 1.77% in March 2026
Financials & Others
The company’s revenue rose by 15.70 percent from Rs. 676 crores in March 2025 to Rs. 783 crores in March 2026. Meanwhile, Net profit declined from Rs. 94 crores to Rs. 91 crores in the same period.
The company demonstrates strong capital efficiency and profitability, with a Return on Capital Employed (ROCE) of 23.3% and Return on Equity (ROE) of 19.1%, indicating effective use of both invested capital and shareholder funds.
Its low debt-to-equity ratio of 0.30 reflects a conservative capital structure, reducing financial risk. Additionally, a PEG ratio of 0.40 suggests the stock may be undervalued relative to its growth potential. Over the past five years, the company has delivered exceptional profit growth with a CAGR of 106%.
TARIL is a leading manufacturer of transformers and reactors in India, offering a wide and specialised product portfolio. Its range includes single-phase power transformers up to 500 MVA and 1200 kV class, furnace transformers, rectifier and distribution transformers, as well as specialty transformers for applications such as locomotive traction.
The company also produces series and shunt reactors, mobile substations, earthing transformers, and solutions for emerging sectors like solar and green hydrogen. It serves key segments including power generation, transmission, distribution, and various industrial sectors.
With a total installed manufacturing capacity of around 75,000 MVA and a presence in over 40 countries, the company has established a strong global footprint, backed by its engineering capabilities and diverse product offerings.
As of 31st March 2026, the company’s order book stood at Rs. 5,005 crores, with a Q4 order inflow of Rs. 244 crores. Additionally, inquiries under negotiation remained strong at over Rs. 23,000 crores, indicating a robust pipeline for future growth.
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