Antique Stock Broking gives buy rating to Transrail Lighting despite stock drop

Domestic brokerage firm Antique Stock Broking has initiated coverage on Transrail Lighting with a buy rating and a target price of ₹851. This target indicates a potential 76.5 percent surge from the stock's Tuesday closing price of ₹482.

Market Standing And Order Book

The shares have lost 13.5 percent of their value in 2026 and hit a record low last month after falling from a record high of ₹855.80 to ₹400.65 in September. Despite this downward trend, the brokerage anticipates a reversal supported by a multi-year power transmission and distribution investment cycle. The company enters this phase with a robust order book of ₹160 billion, including L1, providing over two years of revenue visibility.

Financial Growth And Performance

Order inflows stood at ₹85 billion in FY26, with international orders accounting for 39 percent. Between FY22 and FY26, the company achieved a topline compound annual growth rate of 31 percent, alongside an EBITDA margin expansion of 310 basis points that drove EBITDA and PAT CAGRs of 41 percent and 58 percent respectively. Working capital days dropped to 80 compared to 104 days in FY22, while cumulative operating cash flow reached ₹11.6 billion.

Context

Brokerage firms frequently issue buy ratings and target prices when they believe market pessimism has created an attractive entry point for investors in fundamentally strong companies. Power transmission and distribution firms are closely tied to national infrastructure spending, grid upgrades, and the integration of renewable energy sources into the power grid.