Transformers and Rectifiers India Ltd shares fell 2.55 percent to trade at Rs 348.15 on the NSE on July 3, down Rs 9.10 from the previous close of Rs 357.25. The stock moved in an intraday range of Rs 345.20 to Rs 359.65, against a 52 week range of Rs 224.05 to Rs 578.50. The company’s market capitalisation stood at approximately Rs 10,450 crore, with a P/E ratio of 38.41. Dividend yield was not available at the time of writing. Average trading volume stood at 4.18 million shares.
The stock declined as power capital goods counters came under pressure following an official memorandum from the Ministry of Finance’s Department of Expenditure, dated June 24, 2026, granting a two year exemption from Public Procurement Order No. 4 to four Chinese origin entities operating manufacturing units in India. The four companies named, TBEA Energy India, Nanjing Electric India, New Northeast Electric India and Taikai Electric India, will now be able to bid for government and public sector power contracts without the security clearances otherwise mandated for firms from countries sharing a land border with India.
The exemption fuelled concerns among investors that TARIL, a domestic transformer manufacturer with a growing order book in high voltage equipment, could face intensified competition from Chinese manufacturers in bidding for critical power projects. CG Power, GE Vernova T&D India and Hitachi Energy India also declined sharply on the day, with the broader power equipment pack under pressure through the session.
Brokerage ICICI Securities has characterised the market reaction as overdone, noting that the exemption applies only to Chinese companies with existing Indian manufacturing units rather than to Chinese imports broadly, and that domestic players such as TARIL still stand to benefit from a near term supply shortfall in high voltage equipment estimated at around 40 percent against project requirements over the next three years. The brokerage said the notification was along expected lines and flagged the possibility of a recovery in power capital goods stocks once its limited scope is fully absorbed by the market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The figures and securities mentioned are for analysis and illustration, not recommendations. Markets carry risk, and readers should conduct their own research or consult a registered financial adviser before making any investment decision.
Comments are closed.