India’s Booming Transformer Industry: Watch out these 5 stocks

New Delhi: Electricity is a basic requirement for establishing any type of industry in the world. One of the major equipment used in power distribution is the transformer. As the demand for electricity is increasing, the number of companies manufacturing transformers and their business is also witnessing a boom. Investors in the stock market are now focusing on companies that have better growth prospects in the future.

With the expansion of the power and infrastructure sector in India, companies of transformer manufacturers are also constantly making a splash. These companies are setting up new factories. In this report, we will tell you about five such major transformer manufacturing companies.

Voltamp Transformers

Voltamp manufactures transformers for power and industries. Its balance sheet is very strong. There is almost no debt on it. The company is building a new 6,000 MVA factory in Gujarat. This factory will manufacture large transformers of 220 kV. At the same time, the company is also developing new products for solar and renewable energy, such as inverter duty transformers and solar skid solutions. The share was pariced at Rs 7,149.50 at the time of writing this article on October 20. The counter has given returns of more than 600 percent in five years.

CG Power & Industrial Solutions

CG power is now growing rapidly after coming out of its difficult period. It manufactures transformers, motors and switchgear. The company is building a new factory in Sehore of Madhya Pradesh at a cost of 7.12 billion rupees. This factory will add a capacity of 45,000 MVA and the total capacity of the company will reach 85,000 MVA. This factory will manufacture high-voltage transformers of up to 765 kV, which are essential for large power projects. The price per share stood at Rs 757.70 and in five years the stock has jumped more than 3252 percent.

Bharat Bijlee

Bharat Bijli is an old company that manufactures transformers, electric motors and automation systems. This company is modernizing its factory and expanding it to foreign markets. In Navi Mumbai’s Airoli Works, its transformer manufacturing capacity is being increased from 18,000 MVA to 28,000 MVA, and later it is targeted to take it to 35,000 MVA. Now investors will have to pay Rs 3105.70 to buy a share. Investors who have remained there for the last five years have received a return of 840 percent.

Transformers & Rectifiers (India)

This company manufactures transformers for electric and heavy industries. It plans to increase the capacity at its Moraiya plant from 40,000 MVA to 75,000 MVA, which includes 22,000 MVA of additional high-voltage transformers. The company is reducing costs by increasing the CRGO steel processing unit and is making new products like solar and green hydrogen transformer. Its goal is to achieve income of 1 billion dollars in the medium term. Its share price stood at Rs 485.

Hitachi Energy India

The country’s renowned giant Hitachi Energy India manufactures transformers as well as electricity network systems. Its strength is its global R&D and Hitachi’s capital. The company is expanding its transformer and insulation production factories in India, so that it can meet the growing demand in India and abroad. The data provided in the Tevel is taken from the Equitymaster report.