Shares of CESC, Transformers & Rectifiers (India), RR Kabel, PG Electroplast and TD Power Systems were trading higher on Monday, 5 October, with gains of up to 8%. However, the triggers behind the moves vary, with some stocks benefiting from company-specific developments while others are seeing buying support amid broader market recovery.
CESC rose around 4%, Transformers & Rectifiers gained 6%, RR Kabel advanced 5.2%, PG Electroplast climbed 4%, while TD Power Systems jumped nearly 8%.
The broader market also provided a tailwind. Indian equities rebounded on Monday after the Nifty 50 posted its longest weekly losing streak in 25 years, helped by softer crude oil prices and reduced expectations of aggressive US Federal Reserve tightening.
Power and electrical stocks show strong technical setup
Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said the overall power and electrical space remains technically positive, with most stocks maintaining higher-top, higher-bottom formations and trading above key moving averages.
“Transformers & Rectifiers, TD Power Systems and RR Kabel appear relatively stronger, showing better momentum and relative strength,” Bhosale said. PG Electroplast also remains positive, although it is comparatively more volatile, while CESC continues to remain in a broader consolidation phase.
According to Bhosale, the overall theme remains favourable, with investors likely to favour stocks that show sustained momentum and follow-through after breakouts.
Transformers & Rectifiers gains on fresh orders
Among the stocks in focus, Transformers & Rectifiers (India) has the clearest company-specific trigger. The company received two large orders from GETCO and Damodar Valley Corporation (DVC), with the combined order value in the ₹100–500 crore range.
The GETCO order includes 80 MVAR and 125 MVAR shunt reactors, 500 MVA auto transformers and related work, with an execution timeline of 24–30 months. The DVC order involves 500 MVA and 200 MVA auto transformers, to be executed over 15–28 months.
The fresh orders come against a backdrop of strong momentum in the broader power equipment theme, where demand is being supported by grid expansion and increasing power infrastructure requirements.
TD Power Systems sees strong order-led momentum
TD Power Systems has emerged as one of the stronger momentum counters in the space. Sunny Agrawal, Deputy Vice President – Fundamental Research at SBI Securities, said the brokerage remains positive on the stock, supported by its robust order book, upgraded growth guidance from management and strong export demand.
“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,” Agrawal said.
He added that demand remains healthy across AI data centres, grid stabilisation, gas turbines, gas engines, hydro projects and renewable energy-linked applications. Management has also highlighted a significant global shortage of power generation equipment, with gas engine and gas turbine OEMs continuing to drive growth.
TD Power Systems plans to invest around ₹50 crore in FY27 towards debottlenecking, automation and efficiency enhancement. According to Agrawal, these initiatives are expected to support revenue capacity expansion to nearly ₹3,200 crore by FY28.
RR Kabel: Sector outlook remains positive
The broader wires and cables segment also continues to attract investor interest, with RR Kabel among the stronger performers. Agrawal said SBI Securities remains positive on the sector, supported by robust industrial and infrastructure demand, which should help absorb additional competition from aggressive entrants such as Ultratech.
“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,” Agrawal said.
He attributed the rally to RR Kabel’s focus on margin improvement but cautioned that an aggressive pricing strategy by Ultratech could put pressure on industry margins. However, this could be partly offset by higher exports, a better product mix and a rising contribution from the higher-margin cable segment, he added.
CESC, PG Electroplast also gain
CESC, meanwhile, is seeing relatively less stock-specific momentum compared with the stronger power equipment counters. Bhosale said the stock remains in a broader consolidation phase, suggesting that its current rise is more closely linked to the broader market recovery than a decisive technical breakout.
PG Electroplast continues to maintain a positive technical setup but remains comparatively volatile, according to Bhosale. The stock’s performance is also linked to the broader electronics and consumer-durables manufacturing growth theme.
Overall, Transformers & Rectifiers, TD Power Systems and RR Kabel stand out for stronger momentum and relative strength, while CESC remains in consolidation and PG Electroplast offers a more volatile setup. The broader power and electrical theme remains favourable, but sustained breakouts and follow-through will be key for the next leg of the rally.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
