Transrail Lighting Limited

Industrials — Engineering & Construction · NSE

₹466.30−₹0.60 (−0.13%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Transrail Lighting Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Transrail Lighting Limited, an engineering, procurement, and construction (EPC) company, engages in the designing, engineering, supply, manufacture, construction, testing services for power transmission and distribution in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees2,747

Annual revenue₹6,780 Cr

How does it make money?

Turns over ₹6,780 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 2,747 employees supports ₹2.47 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.8%

Net margin6.0%

Revenue / employee₹2.47 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.7% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE31.1%

ROE17.7%

Peer median ROE14.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 25.1% and earnings to grow about 28.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+25.1%

Est. earnings growth+28.4%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +120% while net margin moved +71% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+120%

Margin effect+71%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

82/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.5x

2Y Median

24.5x

24 monthly readings · mean 23.9x · range 14.6x–38.9x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 37% below its 2y median of 24.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 48% below the peer median of 30.1x.

vs. its own history

Cheap

24.5x median over 24 months · -37%

vs. sector peers

Cheap

30.1x median of 3 peers · -48%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.5x

P/B

2.74x

EV/EBITDA

7.6x

PEG

0.28

Dividend Yield

0.43%

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 9.7% to 12.8% over 3 years.
Cash generation is improving
Free cash flow is up 344% over 3 years.
Return on equity is rising
ROE has improved from 13.9% to 17.7%.
Return on capital is rising
ROCE has improved from 26.6% to 31.1%.
High return on capital employed
ROCE of 31.1% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 15.5x the stock trades 37% below its own median of 24.5x.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 169% against revenue growth of 120% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 145% against revenue growth of 120% — stock may not be moving.

Red Flags

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 169% against revenue up 120% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 145% against revenue up 120% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 9.7% to 12.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 37% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 48% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹394 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 169% against revenue up 120%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 22% a year✓ 30.0% CAGR
Latest reported year was 4.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹394 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹6,272 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30

Profitable

Profitable on a per-share basis

ROE

17.7%

Strong

Strong capital efficiency

ROCE

31.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

4.0%

Modest

Modest growth

Profit Growth (YoY)

2.0%

Modest

Slow profit growth

Dividend Yield

0.43%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹394 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹466.3

P/E (Forward)

8.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

10.7%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

463.7 / 453.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,086 Cr	₹4,009 Cr	₹5,212 Cr	₹6,780 Cr	+30.0%
EBITDA	₹299 Cr	₹515 Cr	₹701 Cr	₹869 Cr	+42.7%
EBITDA Margin	9.7%	12.8%	13.4%	12.8%	—
PAT (Net Profit)	₹108 Cr	₹233 Cr	₹329 Cr	₹404 Cr	+55.4%
EPS	₹8.67	₹18.79	₹25.72	₹29.9	+51.1%
ROE	13.9%	20.5%	17.5%	17.7%	—
ROCE	26.6%	35.8%	32.3%	31.1%	—
Total Debt	₹621 Cr	₹667 Cr	₹661 Cr	₹678 Cr	+3.0%
Free Cash Flow	₹89 Cr	₹7 Cr	₹145 Cr	₹394 Cr	+64.4%

🟢 Revenue has grown at 30.0% a year over 3 years.

🟢 EBITDA has grown at 42.7% a year over 3 years.

🟢 EBITDA Margin has risen from 9.7% to 12.8% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 55.4% a year over 3 years.

🟢 EPS has grown at 51.1% a year over 3 years.

🟢 ROE has risen from 13.9% to 17.7% over 3 years (+3.7 pts).

🟢 ROCE has risen from 26.6% to 31.1% over 3 years (+4.5 pts).

🔴 Total Debt has grown at 3.0% a year over 3 years.

🟢 Free Cash Flow has grown at 64.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,354 Cr

Total Liabilities

₹5,073 Cr

Total Debt

₹678 Cr

Cash & Equivalents

₹385 Cr

Operating Cash Flow

₹643 Cr

Capex

-₹249 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

75.8%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹851

+82.5% vs CMP

Target Range

₹851 – ₹851

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

3 positive2 mixed1 general

Transrail Lighting Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

Transrail Lighting Wins Orders Worth ₹408 Crore; Shares Rise 3.36%

HDFC Sky, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Transrail Lighting Share Price Target 2027 to 2030: Analyst Outlook

Univest, 14 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Transrail Lighting shares rise 4% after company bags orders worth ₹400 crore

CNBC TV18, 14 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Transrail Lighting Limited (NSE:TRANSRAILL) Is About To Go Ex-Dividend, And It Pays A 0.5% Yield

Simply Wall Street, 07 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Transrail Lighting shares rally 10% on securing new orders worth over ₹574 crore; key details

Upstox, 30 SeptOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong15/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive10.7/15

🔴RiskHigh3.2/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 22% a year30.0% CAGR
✓EBITDA margin holds above 11%12.8%
✓Interest cover stays above 3x3.9x
✓Free cash flow remains positive₹394 Cr
✓Debt / EBITDA stays below 2x0.8x