2 days ago
Power and Electrical Shares Rise on Orders and Recovery
Several Indian power and electrical companies’ shares went up on Monday, 5 October.
The wider stock market also recovered, helping lift these shares.
Transformers & Rectifiers had a specific boost from two new transformer-related orders.
TD Power Systems was supported by its order book, export demand and higher growth guidance.
RR Kabel drew interest amid a positive outlook for wires and cables.
Analysts said some of these companies had stronger share-price momentum than others.
CESC was still moving within a broader trading range.
PG Electroplast’s share trend was positive, but its price was more volatile.
On Monday, 5 October, CESC, Transformers & Rectifiers, RR Kabel, PG Electroplast and TD Power Systems rose by up to nearly 8%.
A broader Indian market rebound, following the Nifty 50’s longest weekly losing streak in 25 years, supported the gains.
Transformers & Rectifiers received two orders from GETCO and Damodar Valley Corporation worth a combined ₹100–500 crore.
Analysts cited TD Power Systems’ order book, upgraded growth guidance and export demand as positive factors.
Analysts saw stronger momentum in Transformers & Rectifiers, TD Power Systems and RR Kabel, while CESC remained in consolidation and PG Electroplast was more volatile.
- Who
- CESC, Transformers & Rectifiers (India), RR Kabel, PG Electroplast and TD Power Systems.
- What
- Their shares rose, with gains of up to nearly 8%.
- Where
- Indian equity markets.
- When
- Monday, 5 October; the year is not stated.
- Why
- The gains reflected a broader market rebound and, for some companies, company-specific orders, demand and growth expectations.
Positive factors
Cautions and qualifications
Power and electrical shares
Positive factors
An analyst described the sector’s technical setup as positive, with several shares showing stronger momentum and relative strength.
Cautions and qualifications
The analyst said CESC remained in a broader consolidation phase and PG Electroplast was comparatively volatile; sustained breakouts and follow-through would matter.
RR Kabel and sector outlook
Positive factors
SBI Securities cited industrial and infrastructure demand, exports, product mix and a growing higher-margin cable contribution as supports for the sector and RR Kabel.
Cautions and qualifications
SBI Securities said RR Kabel’s valuation appeared broadly fair after its rally and warned that aggressive pricing by Ultratech could pressure industry margins.
Market gains
Positive factors
Softer crude prices and reduced expectations of aggressive US Federal Reserve tightening helped support the broader market rebound.
Cautions and qualifications
The article noted that the broader recovery, rather than a decisive company-specific technical breakout, appeared to explain CESC’s rise.
Key facts
- Share moves
- CESC rose around 4%; Transformers & Rectifiers 6%; RR Kabel 5.2%; PG Electroplast 4%; TD Power Systems nearly 8%.
- Transformers & Rectifiers orders
- Two orders from GETCO and Damodar Valley Corporation, with a combined value in the ₹100–500 crore range.
- GETCO execution
- The order includes shunt reactors, 500 MVA auto transformers and related work, with execution scheduled over 24–30 months.
- DVC execution
- The order includes 500 MVA and 200 MVA auto transformers, to be executed over 15–28 months.
- TD Power investment
- The company plans to invest around ₹50 crore in FY27 in debottlenecking, automation and efficiency improvements.
- TD Power capacity
- The initiatives are expected to support revenue capacity of nearly ₹3,200 crore by FY28.
- Market backdrop
- Indian equities rebounded after the Nifty 50 recorded its longest weekly losing streak in 25 years; softer crude prices and lower expectations of aggressive US Federal Reserve tightening were cited as support.
Quotes
Rajesh Bhosale
Technical Analyst at My Advisor Alpha
“For RR Kabel, valuations now appear broadly fair, as the gap with the sector leader, Polycab, has significantly narrowed following the stock's strong rally over the past year.”
livemint.com
“We continue to remain positive on TD Power, backed by a robust order book, management's upgraded growth guidance, and strong demand from export markets.”
livemint.com
Sources
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