Order received at 2:25 pm, stock rockets, jumps 6% in minutes, record-breaking volume
Suspense Crime, Digital Desk : Transformers and Rectifiers India (TARIL) shares saw a sudden surge on Tuesday. Trading was normal until the morning, but at 2:25 pm, as news of a large order for the company reached the market, investors' buying spree intensified. Within minutes, the stock surpassed ₹355, rising nearly 6%. This surge in trading volume also saw a significant increase.
The company informed the stock exchange that it had received a Notification of Award (NOA) from Power Grid Corporation of India Limited (PGCIL). This order is for the manufacture of power transformers of various capacities and all related work. The company has categorized this order as an Ultra Mega Order. According to the company, an Ultra Mega Order is one with a value of ₹1,000 crore or more. The supply of this order will be completed within the next 30 months. The company also clarified that this order was received as part of normal business activities and the promoter group has no interest in it. This news became the biggest reason for the stock's rise. As soon as the market learned of the large order, investors began buying the stock, and within minutes, the stock rose by nearly 6%.
Volume also saw a significant surge. The stock 's average daily trading volume increased not only by the share price, but also by a significant increase. On normal days, the stock trades an average of 4.3 million shares, but on Tuesday, this increased to 5.8 million shares. When a stock's price and volume increase, it's generally considered a sign of growing investor interest. This is why it was a topic of discussion in the stock market on Tuesday. Transformers and Rectifiers India , a company worth Rs 10,000 crore, currently has a market cap of approximately Rs 10,000 crore. The company manufactures transformers for the power sector and is among the country's leading transformer manufacturing companies. The company stated in a filing to the exchange that it has long been engaged in manufacturing high-quality transformers in the country and will fulfill this new order as per the agreed terms.
Still far below its all-time high: Although the stock saw a significant rally on Tuesday, it is still trading well below its all-time high of Rs 648.90. On the other hand, if we look at the long-term record, the all-time low for the stock has been just Rs 2.45.
This means that this stock has delivered impressive returns to investors over the long term, but it has also seen fluctuations over the past year.
What has been its return
Looking at different periods, the picture is quite interesting. Over the past year, the stock has fallen by approximately 28%. In the past three months, it has gained approximately 30%. Meanwhile, in three years, the stock has delivered a strong return of approximately 600%.
This means that in recent months, the stock has begun to show signs of recovery. Big news at 2:25 pm, the stock rocketed, jumping 6% in just a few minutes, and volume also increased.
Looking at the company's shareholding pattern, promoters hold 63.36%. However, 21.84% of the promoters' total stake is pledged.
The public holds 22.38%. The remaining stake is held by other investors and institutional investors.
Why is the order considered significant
Power Grid is one of the largest power transmission companies in the country. Therefore, a large order from it is considered crucial for any transformer manufacturing company.
The company did not disclose the exact amount of the order in its disclosure, but categorized it as an Ultra Mega Order. According to the company's classification, this category includes orders worth ₹1,000 crore or more.
Such a large order could strengthen the company's order book in the coming months and support its business.
What will investors be watching now
The market will be watching the speed at which the company executes this order and when its impact will be visible in the coming quarters' results.
Tuesday's rally made it clear that the market has considered this order positive. However, a single-day rise in a stock does not guarantee future performance. Therefore, it is important for investors to make any investment decision after considering the company's business, order book, financial position, and their investment objectives.
