Check Before You Invest : Transrail Lighting Ltd

Snapshot

Q.1 Which industry/sub-sector does Transrail Lighting Ltd belong to?

Transrail Lighting Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Transrail Lighting Ltd a good quality company?

Transrail Lighting Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Transrail Lighting Ltd undervalued or overvalued?

Transrail Lighting Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Transrail Lighting Ltd a good buy now?

Transrail Lighting Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Transrail Lighting Ltd?

Transrail Lighting Ltd revenue growth is 30.2% for FY-2025, which is above its 5-year CAGR of 23.64%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Transrail Lighting Ltd?

Transrail Lighting Ltd Return on capital employed is 35.49% for FY-2025, which is above its 5-year historical median of 30%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Transrail Lighting Ltd?

Transrail Lighting Ltd Return on Asset is 6.12%, which is above its 5-year historical median of 4.85%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Transrail Lighting Ltd?

Transrail Lighting Ltd Return on equity is 21.74% for FY-2025, which is above its 5-year historical median of 20.15%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Transrail Lighting Ltd?

Transrail Lighting Ltd Cash conversion cycle is 23 days, below its 5-year historical median of 25 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.97	1
ROE	21.74	20.15
ROCE	35.49	30
Cash Conversion Cycle	23 days	25 days

Q.6 Gross Profit margin of Transrail Lighting Ltd?

Transrail Lighting Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025, which is above its 5-year median of 7.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Transrail Lighting Ltd?

Transrail Lighting Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.21% for FY-2025, which is above its 5-year median of 13.21% indicating increasing margins.

Q.8 Net Profit Margin of Transrail Lighting Ltd?

Transrail Lighting Ltd Net Profit Margin is 6.3% for FY-2025, is above with its 5-year median of 4.73%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	10	7.8
Operating Profit Margin	14.21	13.21
Net Profit Margin	6.3	4.73

Q.9 Debt to Equity ratio of Transrail Lighting Ltd?

Transrail Lighting Ltd Debt-to-Equity ratio is 0.34, which is lower with the industry average of 0.51, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Transrail Lighting Ltd?

Transrail Lighting Ltd Debt to cash flow from operations is 2.23, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Transrail Lighting Ltd?

Promoters hold 71.12% of the Transrail Lighting Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Transrail Lighting Ltd vs industry peers?

Transrail Lighting Ltd revenue CAGR is 23.64%, compared to the industry median CAGR of 16.95%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	30.2	17
Gross Profit Growth	43.5	27.6
Operating Profit Growth	36.4	NAN
Net Profit Growth	42.1	28.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.97	1.06
ROE	21.74	10.12
ROCE	35.49	13.84
Cash Conversion Cycle (days)	22.65	104

Valuation & price assessment

Q.1 Stock return of Transrail Lighting Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 30.66% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	30.7%

Q.3 Valuation ratios of Transrail Lighting Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	18.47	25.56	37.99
Price to Book	3.62	3.55	3.99
Price to Sales	1.17	1.62	2.75
EV to EBITDA	9.22	11.61	18.70

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