Transrail Lighting Ltd Share price

Investors, buckle up! AXIS DIRECT recommends Transrail Lighting Ltd has emerged as a hot stock recommendation backed by robust fundamentals and industry tailwinds. Axis Securities recently highlighted this Indian EPC powerhouse in its Axis PUNCH report for short-to-medium-term investments, predicting a 10% upside potential with a target price . If you’re looking for a promising opportunity in the utilities sector, here’s why Transrail Lighting Ltd deserves a spot in your portfolio:

Transrail Lighting Ltd for upside

Broker Name	Date	Entry Price	Target Price	Holding Period	Upside Potential
Axis Securities	23 April 2025	₹510	₹560	3-6 Months	10%

A Strong Foundation

The company boasts a diversified EPC portfolio and a solid order book of ₹11,499 Cr as of December 2024. It has successfully secured significant domestic and international contracts, ensuring revenue visibility for 2-2.5 years. Notably, over 51% of its order book stems from international projects, showcasing its global footprint.

Growth Guidance

Transrail has projected an impressive 30% revenue growth for FY25 and 25% for FY26, with sustainable EBITDA margins ranging from 12% to 12.5%. The management’s confidence is bolstered by its ability to leverage backward integration and strategically expand manufacturing capacities to cater to rising demand.

Strategic Expansion

With approved capex of ₹327 Cr, Transrail plans to execute brownfield expansions and establish new manufacturing facilities to meet its increasing order book requirements. Its expansion blueprint aligns perfectly with the company’s growth ambitions.

Macro Tailwinds

India’s commitment to renewable energy and investments in T&D infrastructure promises a bright future for Transrail. Additionally, the company’s involvement in the bullet train fencing project and railway ATP initiatives is set to drive revenues further.

Financial Projections

Axis Securities projects robust financial growth:

• FY25 Revenue: ₹5,198 Cr (up 27% YoY)
• FY25 EBITDA: ₹624 Cr (growth of 31%)
• FY25 EPS: ₹25.1 (YoY growth of 28%)

Fundamentals Table

Parameter	FY24	FY25E	FY26E	FY27E
Net Sales (₹ Cr)	4,077	5,198	6,362	7,462
EBITDA (₹ Cr)	475	624	795	933
Net Profit (₹ Cr)	233	322	452	559
EPS (₹)	19.6	25.1	33.9	42.0
RoE (%)	24	21	22	22
P/BV (x)	5.8	3.6	3.0	2.4

Conclusion of AXIS DIRECT recommends

Transrail Lighting Ltd stands out as a compelling investment opportunity given its strong financial metrics, strategic expansion plans, and positive macro outlook. By leveraging its robust order book and industry tailwinds, the company is poised to deliver sustained growth over the next few years.

AXIS DIRECT recommends a BUY with a target price and a holding period of 3-6 months. Make sure to evaluate your risk appetite and consider this high-conviction idea for maximizing returns.

See the PDF of AXIS DIRECT RESEARCH REPORT