Select brokerage firms continue to remain positive on Transrail Lighting (TLL), as hinted by their initiation reports, which made its Dalal Street debut in December 2024. Brokerage firms see a strong upside potential in the stock, making its a multibagger from its IPO price in the coming days.
Transrail Lighting offered its shares at Rs 432 apiece, during its IPO in December last year. The company raised a total of Rs 838.91 crore via IPO and the stock settled at Rs 739 on Thursday, falling 1.48 per cent. The stock is 71 per cent above its IPO price. However, it hit 52-week high of Rs 855.40 in August 2025, rising 98 per cent from its IPO price.
LKP Securities initiated coverage with a ‘buy’ citing the company’s strong order book and ongoing expansion. The company operates four integrated manufacturing units, enabling in-house production of crucial components such as lattice structures, conductors and monopoles, giving it significant cost and operational advantages over competitors.
Over the last three years, revenues have grown at a 31 per cent CAGR, with further growth of over 20 per cent forecasted for FY26 and FY27. The company’s operating margin remains stable at about 11.7 per cent, supported by a robust RoCE of around 24 per cent in FY25, it said.
TLL’s competitors in the sector include other major power transmission and EPC firms active in India’s large-scale grid capex initiatives. A strong domestic and global transmission and distribution (T&D) market, projected to grow at a 4.1 per cent CAGR through FY2030, underpins the company’s future prospects, LKP added. “We initiate coverage with a ‘buy’ rating and a target price of Rs 990 (28x FY27E EPS).”
Incorporated in February 2008, Mumbai-based Transrail Lighting is an engineering and construction company focused on power transmission and distribution and manufacturing lattice structures, conductors, and monopoles.
Transrail’s business model is powered by backward integration for not only towers but also conductors, enabling better cost control and industry leading margins. Its diversified product portfolio across power transmission, rail electrification, and infrastructure ensures revenue stability, said Phillip Capital.
“We believe that Transrail is well positioned to capitalize on the accelerating T&D capex cycle driven by grid modernization, renewable integration, and electrification push. With a robust orderbook, diversified presence across major geographies, the company stands out among mid-tier EPC peers,” said Phillip Capital.
Backed by doubling of capacity and healthy balance sheet, it is well placed to deliver consistent growth amid the global T&D boom, it added. “We estimate a CAGR of 23 per cent/20 per cent/22 per cent for revenue/Ebitda/PAT over FY25-28E. We value the company at PE of 19 times H1FY28E EPS of Rs.39.5 and initiate coverage with a ‘BUY’ rating and a target price of Rs 1027.”