TRANSRAILL

Stock Analysis

Stock Analysis Transrail Lighting Ltd (TLL), incorporated in 2008, is an integrated transmission, distribution, and pole manufacturing company with ISO and NABL certifications. It operates across four key business verticals: (a) Power Transmission & Distribution — offering end-to-end services including design, manufacturing, and installation of galvanized steel structures and substations; (b) Railway Electrification — executing overhead equipment and civil-electrical infrastructure for railways; (c) Civil Construction — involved in projects like bridges, tunnels, and national infrastructure initiatives such as the Bharatmala project; and (d) Poles & Lighting — manufacturing a range of products including high masts, monopoles, streetlights, and stadium lighting. The company owns four manufacturing units in Maharashtra and Gujarat with annual production capacities of 1.01 lakh TPA for towers, 60,000 TPA for conductors, and 25,000 TPA for poles. It exports to 58 countries, including the USA, Canada, UAE, and Bangladesh. In FY24, EPC contracts contributed \~95% to revenue, with 59% from exports and 83% from government clients. The company received Rs. 45 billion in new orders, taking its total order book to Rs. 101 billion, of which 61.9 billion is international. Notably, 66% of its overseas order book is concentrated in a river-crossing project in Bangladesh. The top five projects comprise 48% of the total order value, indicating project concentration risk. TLL recently launched its IPO to raise Rs. 4.5 billion through a mix of fresh issue and stake sale by promoter Ajanma Holdings, reducing its holding from \~85% to 70%.