Buy Transformers and Rectifiers For Long Term
Well, this is the weekend update for you to be ready for coming Monday. The investors like me with a long-term perspective can consider buying the stock of Transformers and Rectifiers (T&R). What made me suggest it is it’s
- robust growth in revenue backed by stable margins
- healthy growth in order backlog
- and the likely commissioning of new capacities by the end of the current quarter add visibility to the company’s growth prospects.
One more important thing is it’s reasonable valuation. At the current market price of Rs 303, the stock trades at a reasonable valuation of about 10 times and 7 times its likely FY-09 and FY-10 per share earnings.
As a word of caution to myreaders, please consider buying the stock in lots given the present turbulence in the stock market.
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