Sector Alpha

Track where the smart money flows in Indian equities

DashboardWeekly UpdateSector Deep DivesUploadPipelinePE CyclesBrainAboutHow We Research

Data updated weekly. Not financial advice.

sectoralpha · sector story
Home›Sectors›Capital Goods - Transformers

Capital Goods - Transformers — sector analysis & key numbers

Capital Goods - Transformers is showing topping signs after a long run: 8 of 12 constituents are in price uptrends, and aggregate profit grew 12% in the latest year.

12 companies₹2.20 L Cr market value47.2 relative strengthleaders rotationtailwind
By Sector Alpha Research · machine-compiled from Screener.in data · Updated 1 July 2026 · Not investment advice
The 30-second answer

Capital Goods - Transformers groups 12 listed companies worth ₹2,20,452 Cr combined, and 8 of 12 are in confirmed price uptrends. Aggregate profit moved −2.6% year-on-year in the latest reported quarter. The sector trades at an aggregate P/E of 63.5×, at the 75th percentile of its own history.

Data as of 1 July 2026 · every number traces to its Screener source column · not investment advice.

Key numbers
Companies
12
Total market cap
₹2,20,452 Cr
Relative strength
47.2
RRG quadrant
leaders
Weeks in streak
12
In Stage-2 uptrend
8 of 12
Above 200-DMA
10 of 12
Beating NIFTY 500
9 of 12
Latest-quarter revenue
₹7,331 Cr
Latest-quarter profit
₹704 Cr
Aggregate P/E
63.5×
Valuation percentile
75th of its own history
Sector wind
tailwind
Data as of
1 July 2026
⚠ The verdict

The research read on Capital Goods - Transformers: showing topping signs after a long run.lifecycle_bucket

All three streams agree the THESIS is up and earnings-backed, but they conflict on whether margins and price have peaked — so mixed. CURVE: a durable, still-expanding earnings super-cycle (profit 1,497→2,536, OPM rebuilt to mid-teens). The deterministic curve driver is earnings-led (aggregate earnings +69.4% just edged the multiple +63.7% — the winner pattern), confirmed by qual's order-book and revenue numbers and corroborated by broadening breadth (% above 200-DMA 31→73%). BUT the deterministic cyclicality verdict is peak margin value trap with the most severe normalization in the batch: trailing PE 67th → normalized 100th percentile (Δ-33 pts) because OPM 13.63% sits at the 75th percentile versus a 5.4% mid-cycle with enormous amplitude — at mid-cycle margins this is the MOST expensive sector, not cheap. Price has run ~13x to a peak and the multiple itself re-rated +63.7% — a topping winner, not an early turn. The new, decisive caution versus last fortnight is that qual has DOWNGRADED from worth studying deeper to on watch: margins are now visibly compressing (Shilchar -800 bps, TARIL -430 bps) as transformer oil doubled and fixed-price utility contracts resist pass-through — the 'margin peak as cycle top' signal is live. Top contributors are broad-ish (CGPOWER 19.8%, TARIL 19.3%, DANISH 10.4% — no single-name dominance) and breadth is genuinely wide. SOCIAL is broad/off-target. capital_flows = capacity risk (institutions absent, capex +153.7% flood). Per the lifecycle rubric this is topping with sector earnings still EXPANDING → earnings-gated cap of 75; I hold conviction at 65, below last fortnight's 72 and below the cap, because the earnings are genuinely durable AND broadly participated, but the now-visible margin compression on top of the severe peak-margin normalization (normalized PE 100th percentile), the +63.7% multiple re-rating, the ~13x price run, and institutions absent into a capex flood mean the forward distribution is no longer the start of the curve. No extension case is invoked.synthesis

What would change this view: The demand leg the thesis rests on slips while margins keep compressing — if transformer-oil and CRGO inflation are NOT passed through and aggregate OPM rolls below mid-teens while order intake decelerates (the TARIL guidance walk-back to ₹3,250 Cr is an early sign), then the +63.7% re-rated multiple has nothing left to compound and the peak-margin normalization (normalized PE 100th percentile) bites — confirming a peak-margin top, not a durable super-cycle. Conversely, backward-integration restoring ~200 bps of margin in FY27 with order intake re-accelerating would re-establish earnings-led durability and lift conviction.would_change_my_mind

Grid super-cycle keeps order books at ~2x revenue, but a raw-material wall (transformer oil +100%, CRGO/copper) is gutting margins — demand real, profitability now the swing factor.one_line_thesis

tailwind
  • ✓Aggregate profit turned from years of losses (-530 in 2017, -713 in 2018, -1,233 in 2020) to a durable, still-expanding profit (1,410 in 2021, 1,497, 2,329, 2,275, 2,536 in 2026). · capital-goods-transformers.json (curve.annual_fundamentals.pat)
  • ✓Revenue compounds steadily (14,018→16,720→20,758→25,089 across 2023-2026) on a large established base. · capital-goods-transformers.json (curve.annual_fundamentals.revenue)
  • ⚠OPM rebuilt from ~0 (0.03 in 2017) to mid-teens (14.56 in 2025, 13.63 in 2026); deterministic block puts current OPM 13.63 at the 75th percentile versus a 5.4 normalized mid-cycle, direction rising. · capital-goods-transformers.json (sector_cycle_deterministic.margin)
  • ⚠Aggregate trailing PE RE-RATED from 38.8 (2023-03 anchor) to 63.52 (2026-03), a +63.7% multiple expansion; rerating verdict is re-rating. · capital-goods-transformers.json (curve scalars)
  • ✓PB has come off its 23.87 peak to 10.02 but is still rich. · capital-goods-transformers.json (curve.valuation_series.pb; pb_now)
  • ⚠Price index ran from a ~22 trough (2018-09) to a peak of 1,007.6 (2025-09), roughly a 13x move, settling at 871.1 (2026-03). · capital-goods-transformers.json (curve.valuation_series.price_idx)
  • ⚠Deterministic curve driver is earnings-led: aggregate earnings +69.4% just edged the multiple +63.7% — the winner pattern, durable; breadth corroborates (% above 200-DMA 31.2→72.7%). · capital-goods-transformers.json (sector_cycle_deterministic.curve_move_driver; sector_why_traces breadth_200dma)
  • ⚠Deterministic verdict is peak margin value trap: trailing PE 67th → normalized 100th percentile (Δ-33 pts) at mid-cycle margins — the most severe normalization in the batch. · capital-goods-transformers.json (sector_cycle_deterministic.verdict)

Research view from 2026-06-27

⚠ What the companies are telling us

Across the 3 largest constituents with research timelines, 2 carried trackable guidance: 3 beats, 0 met, 4 misses against what management said.guidance_pairs

2 names with trackable guidance · 3 beat · 0 met · 4 missed

Research view from 2026-06-27

How the sector is moving

8 of 12 constituents are in Stage-2 price uptrends, 10 trade above their 200-day averages, and 9 are beating the NIFTY 500 on relative strength.stageabove_dma200rs_mansfield

Over the trailing ~20 weeks, the share of constituents above the 200-day line moved from 25% to 82% — participation is widening.breadth_series

Sector relative strength stands at 47.2, in the leaders quadrant of the rotation map, with relative strength rising over a 12-week streak.current_rsquadrant

Recent stage changes: BBL (stage 4→1), DANISH (stage 4→2).stage

8 / 12
In Stage-2 uptrend
10 / 12
Above 200-day avg
9 / 12
Beating NIFTY 500
RRG: leadersRS 47.2relative strength rising12-week streak
Breadth trend — share of constituents participating% (trailing ~20 weeks)
0255075200-DMAvs NIFTY2026-02-092026-03-302026-05-182026-06-22
Data: Breadth trend
Period% above 200-DMA (%)% beating NIFTY (%)
Feb 2625.016.7
Feb 2633.333.3
Feb 2633.333.3
Mar 2633.333.3
Mar 2627.327.3
Mar 2627.327.3
Mar 2618.227.3
Mar 2637.537.5
Apr 2655.655.6
Apr 2681.854.5
Apr 2690.981.8
Apr 2681.872.7
May 2690.963.6
May 2654.554.5
May 2654.554.5
May 2663.663.6
Jun 2663.663.6
Jun 2663.663.6
Jun 2681.863.6
Jun 2681.863.6

Data as of 2026-07-01

The performers

Top performers by 1-year price return: Ujaas Energy Ltd (+97.8%), Schneider Electric Infrastructure Ltd (+69.4%), Indo Tech Transformers Ltd (+67.9%), CG Power & Industrial Solutions Ltd (+44.3%), Supreme Power Equipment Ltd (+8.3%).price

by 1-year return
Sector avg
Indexed price (base 100, ~52 weeks)index
Data: Indexed price (base 100, ~52 weeks) — default top-5
Period533644 (index)SCHNEIDER (index)INDOTECH (index)CGPOWER (index)SUPREMEPWR (index)Sector avg (index)
Jul 25100100100100100100
Jul 2595.0106100100106100
Jul 2590.310798.599.297.895.0
Aug 2599.511788.997.593.095.7
Aug 2512410983.499.889.294.7
Aug 25–10210199.710393.9
Aug 2511810199.210296.395.0
Aug 2512110092.010493.494.2
Sep 2511510497.111097.096.2
Sep 2510910294.811892.795.4
Sep 2510410496.811710696.6
Sep 2598.797.890.711198.291.7
Oct 2510410096.111298.793.5
Oct 2512697.097.411310194.6
Oct 2513296.389.911499.793.1
Oct 2512598.490.910810192.0
Oct 2511997.989.511098.191.1
Nov 2512510188.511093.988.9
Nov 2512893.398.411195.989.2
Nov 2512886.890.910611087.7
Nov 2512183.889.910110484.5
Dec 2515388.284.799.099.185.2
Dec 2516084.085.099.796.885.8
Dec 2515285.083.210195.084.6
Dec 2514585.182.598.292.983.3
Jan 2613783.985.297.291.083.4
Jan 2613175.480.489.183.378.1
Jan 2612472.676.184.183.775.3
Jan 2611871.065.482.268.369.8
Feb 2612682.166.689.474.474.1
Feb 2617690.071.810184.983.1
Feb 2619295.073.110268.983.7
Feb 2618210875.410769.286.7
Feb 2618210684.110970.687.9
Mar 2618110673.310777.985.3
Mar 26–10470.110672.875.1
Mar 26–10469.010278.275.6
Mar 26–10362.710074.772.1
Apr 26–10666.610278.780.6
Apr 26–11870.611086.184.6
Apr 26–12198.211610191.2
Apr 26–13812812310699.4
Apr 26–146144122120104
May 26–157151131120102
May 26–14813812611094.8
May 26–15312413011596.0
May 26–15313413711797.5
Jun 26–13714114011697.6
Jun 26–12913913711395.2
Jun 26–156143144116103
Jun 26–156156141122104
Jul 26–162172146117106
Quarterly revenue (8q)₹ Cr
Data: Quarterly revenue (8q) — default top-5
Period533644 (₹ Cr)SCHNEIDER (₹ Cr)INDOTECH (₹ Cr)CGPOWER (₹ Cr)SUPREMEPWR (₹ Cr)Sector avg (₹ Cr)
Jun 246.059382.02,22828.0420
Sep 245.06001462,41358.0414
Dec 248.08571772,51629.0534
Mar 258.05872062,75391.0526
Jun 253.06221642,87835.0533
Sep 255.06501832,92375.0494
Dec 253.01,0291963,17536.0659
Mar 26–5902393,442106667
Quarterly net profit (8q)₹ Cr
Data: Quarterly net profit (8q) — default top-5
Period533644 (₹ Cr)SCHNEIDER (₹ Cr)INDOTECH (₹ Cr)CGPOWER (₹ Cr)SUPREMEPWR (₹ Cr)Sector avg (₹ Cr)
Jun 244.048.06.02413.045.5
Sep 241.054.018.02207.042.9
Dec 244.011119.02383.058.5
Mar 250.055.021.027412.060.3
Jun 252.041.019.02675.055.8
Sep 250.052.025.028410.051.9
Dec 250.097.025.02843.065.7
Mar 26–22.024.036311.064.0
Operating margin % (8q)%
Data: Operating margin % (8q) — default top-5
Period533644 (%)SCHNEIDER (%)INDOTECH (%)CGPOWER (%)SUPREMEPWR (%)Sector avg (%)
Jun 248.614.010.015.021.115.3
Sep 24-3.412.016.012.020.014.4
Dec 2441.716.014.013.010.517.7
Mar 258.015.010.013.018.016.3
Jun 25-12211.015.013.018.92.6
Sep 2510.913.017.013.019.015.6
Dec 25-18.917.017.013.014.212.8
Mar 26–8.014.014.018.014.4
Latest reported ROCE / ROE (single latest reading, not a trend)%
Data: Latest reported ROCE / ROE (single latest reading, not a trend) — default top-5
Period533644 (%)SCHNEIDER (%)INDOTECH (%)CGPOWER (%)SUPREMEPWR (%)Sector avg (%)
ROCE %10.029.637.727.022.024.8
ROE %9.735.628.420.819.421.0
10-year valuation percentile (latest)percentile
Data: 10-year valuation percentile (latest) — default top-5
PeriodSCHNEIDER (percentile)INDOTECH (percentile)CGPOWER (percentile)SUPREMEPWR (percentile)Sector avg (percentile)
10y percentile83.080.095.075.067.5

Interactive charts default to the five strongest performers by 1-year price return; use the rail to add or remove any constituent, globally or per chart. Non-interactive readers see the same numbers in each chart’s data table.

Data as of 2026-07-01

How they're scaling

In the latest reported quarter (2026-03), constituents together booked ₹7,331 Cr of revenue (+16.3% year-on-year) and ₹704 Cr of profit (-2.6%).revenuepat

Reporting honesty note: 11 of the constituents have reported this quarter versus 12 a year ago, so part of the year-on-year change is composition, not like-for-like growth.reporters

On the annual arc, aggregate profit grew 12% to ₹2,536 Cr in 2026.pat

Aggregate quarterly revenue₹ Cr
02,5005,0007,500Jun 23Jun 24Jun 25Mar 26
Data: Aggregate quarterly revenue
PeriodRevenue (₹ Cr)Reporters
Jun 233,48310
Sep 233,97911
Dec 234,21210
Mar 244,77011
Jun 244,19910
Sep 244,97212
Dec 245,34210
Mar 256,30612
Jun 255,32610
Sep 255,92412
Dec 256,59010
Mar 267,33111
Aggregate quarterly profit₹ Cr
05001,000Jun 23Jun 24Jun 25Mar 26
Data: Aggregate quarterly profit
PeriodProfit after tax (₹ Cr)
Jun 23320
Sep 23426
Dec 231,065
Mar 24489
Jun 24455
Sep 24515
Dec 24585
Mar 25723
Jun 25558
Sep 25623
Dec 25658
Mar 26704
Aggregate operating margin%
13.014.015.0Jun 23Jun 24Jun 25Mar 26
Data: Aggregate operating margin
PeriodOPM (%)
Jun 2312.3
Sep 2314.2
Dec 2314.4
Mar 2414.3
Jun 2414.4
Sep 2413.4
Dec 2414.7
Mar 2514.9
Jun 2513.7
Sep 2513.8
Dec 2514.2
Mar 2612.9
Aggregate profit by year₹ Cr
02,0002015201920232026
Data: Aggregate profit by year
PeriodProfit after tax (₹ Cr)
2015-12
2016-397
2017-530
2018-713
2019-414
2020-1,233
20211,410
20221,077
20231,497
20242,329
20252,275
20262,536
Aggregate operating margin by year%
0.05.010.015.02015201920232026
Data: Operating margin by year
PeriodOPM (%)
20153.8
20163.4
20170.0
20182.4
20194.5
20203.1
20215.4
20229.7
202312.7
202414.1
202514.6
202613.6

Data as of 2026-06-27

The WHY behind the numbers

Sector revenue moved from ₹20,758 Cr to ₹25,089 Cr (+20.9% year-on-year).revenue

The aggregate P/E moved from 38.8× to 63.5× (+63.7%) while sector profits moved +69.4% — earnings led the multiple — the durable pattern.pe

Capital cycle: capital is entering this industry, with constituent capex running +153.7% year-on-year.readcapex_yoy_pct

Participation check: the share of constituents above their 200-day average moved 31%→73% across the trailing weeks — the move is broadening.pct_above_200dma

✓Sector Σrevenue (annual YoY)+20.9%

Sector Σrevenue +20.9% YoY — confirm it is demand/volume-led across constituents, not price/base.

revenue
✓Sector PE re-rating (12q)+63.7%

Sector PE moved +63.7% but aggregate ΣPAT rose +69.4% over ~3y — EARNINGS led the multiple (the durable pattern). The re-rating is backed by real aggregate earnings.

peprice_idxpat
✓Sector capital-flow (capex + institutions)+153.7%

Capital is ENTERING (read=ENTERING; capex +153.65%, FII+DII -1pp) — crowding in + a capex surge LATE in the cycle is a HEADWIND (supply coming, competition for returns). Check whether the inflow is EARLY (depressed valuation, fresh turn) or LATE (chasing a run).

capex_yoy_pctfii_dii_delta_4qpromoter_delta_2qcwip_growth_pct
✓Sector breadth trend (% above 200-DMA)+132.8%

Sector breadth WIDENING — % above 200-DMA 31→73% over the trailing weeks: broad participation corroborates a genuine sector-wide turn rather than a few-name move.

pct_above_200dmapct_outperforming

Research view from 2026-06-27

Capital cycle

Ownership: institutional (FII+DII) holdings moved -1 percentage points over four quarters; promoter stakes moved -2.46 points over two.fii_dii_delta_4qpromoter_delta_2q

Constituents spent ₹4,175 Cr on capex in the trailing twelve months (+153.7% year-on-year), with gross block growing +38.4%.capex_ttm_sum_crcapex_yoy_pct

On the deterministic capital-flow read, capital is entering this industry.read

capital is entering
FII+DII (4q)−1.00 pp
Promoter (2q)−2.46 pp
Capex TTM₹4,175 Cr
Capex YoY+153.7%
Gross block+38.4%

Research view from 2026-06-27

Valuation vs its own history

The sector trades at an aggregate P/E of 63.52× against a range of 11.06–90.99× over its 40-quarter history.pe

The median constituent sits at the 75th percentile of its own 10-year valuation range.percentile

Aggregate operating margin (13.6%) sits at the 83rd percentile of its own annual history — a cheap-looking multiple on near-peak margins is only cheap if the margins hold.opm

P/E 63.5×75th percentile of its 10-yr range
Aggregate P/E vs its own history×
25.050.075.0P/E2016-062019-122023-062026-03
Data: Aggregate P/E and price index
PeriodP/E (×)Price index
Jun 16–100
Sep 16–98
Dec 16–86
Mar 17–105
Jun 17–108
Sep 17–102
Dec 17–117
Mar 18–99
Jun 18–75
Sep 18–66
Dec 18–67
Mar 19–66
Jun 19–50
Sep 19–36
Dec 19–31
Mar 20–22
Jun 20–31
Sep 20–42
Dec 20–63
Mar 2111.185
Jun 2113.3103
Sep 2118.1140
Dec 2126.6206
Mar 2234.7202
Jun 2235.2205
Sep 2244.1257
Dec 2249.3287
Mar 2338.8313
Jun 2350.8409
Sep 2352.0491
Dec 2340.2533
Mar 2456.0699
Jun 2469.2918
Sep 2472.8992
Dec 2491.01,008
Mar 2568.7842
Jun 2571.3914
Sep 2572.4963
Dec 2560.4827
Mar 2663.5871

Aggregate operating margin (13.6%) sits at the 83rd percentile of its own annual history — a cheap-looking multiple on near-peak margins is only cheap if the margins hold.

Data as of 2026-06-27

The companies

12 companies make up this sector, led by CG Power & Industrial Solutions Ltd at ₹1,48,379 Cr of market value.constituents

CompanyPrice1yStageRS10y val %
CG Power & Industrial Solutions Ltd₹977+44.3%232.695
Schneider Electric Infrastructure Ltd₹1,387+69.4%249.383
Voltamp Transformers Ltd₹9,934+6.3%216.993
Transformers & Rectifiers India Ltd₹359−23.8%4-1.466
Shilchar Technologies Ltd₹4,534−18.9%25.681
Bharat Bijlee Ltd₹2,825−6.7%10.264
Indo Tech Transformers Ltd₹3,240+67.9%276.580
Ujaas Energy Ltd₹178+97.8%255.4–
Danish Power Ltd₹1,033−3.9%230.150
Marsons Ltd₹115−47.8%4-27.525
Vilas Transcore Ltd₹373−36.1%4-14.130
Supreme Power Equipment Ltd₹247+8.3%222.075

Data as of 2026-07-01

⚠ Connected sectors

Headwind chain: A Rs9.15Tn India T&D + RDSS + renewable-grid buildout with 5-7y order visibility, cited verbatim across the entire CapGoodsPower complex; Also touches: Cables - Power, Electrical Equipments/HVDC, Infra - Construction & Contracting, Engineering - Turnkey Services.triggermechanism

Tailwind chain: Surge in AI-driven data center capacity and renewable integration requiring massive grid upgrades. Also touches: Data Centre, Cables - Power, Electrical Equipments/HVDC.triggermechanism

headwind

A Rs9.15Tn India T&D + RDSS + renewable-grid buildout with 5-7y order visibility, cited verbatim across the entire CapGoodsPower complex; the same wind shows in Cables - Power qual, Electrical Equipments/HVDC (Q1/Q4 order-to-billing inflection), Capital Goods - Transformers (Q1 order book) and Engineering - Turnkey Services (record Rs4,849 Cr quarter, Q2).

Government + utility grid spend converts to multi-year backlog → revenue/PAT inflection across transformers, cables, HVDC equipment and turnkey EPC. But the same capex wave is now showing up as a sector-wide supply flood on the balance sheet (Electrical Equipments/HVDC capex +232.8% YoY / CWIP +39.9%; Capital Goods - Transformers capex +154%; Engineering - Turnkey Services capex +69% with a late-cycle capex flood), which compresses the order premium and margins as utilization is chased late-cycle.

Cables - PowerElectrical Equipments/HVDCInfra - Construction & ContractingEngineering - Turnkey Services
tailwind

Surge in AI-driven data center capacity and renewable integration requiring massive grid upgrades.

Data centers demand disproportionate power and cooling, which flows down to transformers, HVDC, power cables, and EMS players for server racks.

Data CentreCables - PowerElectrical Equipments/HVDC

Research view from 2026-06-27

What is NOT happening

A breakdown is NOT underway: 82% of constituents still trade above their 200-day averages.breadth_series

  • A breakdown is NOT underway: 82% of constituents still trade above their 200-day averages.

Data as of 2026-07-01

Frequently asked questions

Straight answers from the data

What is the Capital Goods - Transformers sector?

The Capital Goods - Transformers sector groups 12 listed companies with a combined market value of ₹2,20,452 Cr, led by CG Power & Industrial Solutions Ltd, Schneider Electric Infrastructure Ltd, Voltamp Transformers Ltd. 8 of 12 constituents are currently in confirmed price uptrends.

Which stocks are in the Capital Goods - Transformers sector?

The largest Capital Goods - Transformers companies by market value are CG Power & Industrial Solutions Ltd (₹1,48,379 Cr), Schneider Electric Infrastructure Ltd (₹31,927 Cr), Voltamp Transformers Ltd (₹10,425 Cr), Transformers & Rectifiers India Ltd (₹10,225 Cr), Shilchar Technologies Ltd (₹5,250 Cr), Bharat Bijlee Ltd (₹3,188 Cr), Indo Tech Transformers Ltd (₹3,117 Cr), Ujaas Energy Ltd (₹2,380 Cr).

What are the best-performing Capital Goods - Transformers stocks?

By 1-year price return as of 1 July 2026, the strongest Capital Goods - Transformers stocks are Ujaas Energy Ltd (+98%), Schneider Electric Infrastructure Ltd (+69%), Indo Tech Transformers Ltd (+68%), CG Power & Industrial Solutions Ltd (+44%), Supreme Power Equipment Ltd (+8.3%). These are descriptive price moves measured from weekly Screener closes, not recommendations.

Is the Capital Goods - Transformers sector in an uptrend?

8 of 12 Capital Goods - Transformers constituents are in Stage-2 price uptrends, 10 trade above their 200-day average, and 9 are beating the NIFTY 500 on relative strength. Sector relative strength reads 47.2, in the leaders quadrant of the rotation map, rising over a 12-week streak.

How many Capital Goods - Transformers stocks trade above their 200-day average?

10 of 12 Capital Goods - Transformers constituents currently trade above their 200-day moving average. Over the trailing ~20 weeks, that share moved from 25% to 82% — participation is widening.

Is the Capital Goods - Transformers sector expensive versus its own history?

The Capital Goods - Transformers sector trades at an aggregate P/E of 63.5× against a 11.1–91.0× band over its own history. The median constituent sits at the 75th percentile of its own 10-year P/E range, above the middle of its own historical range. Aggregate operating margin (13.6%) sits at the 83rd percentile of its own annual history — a cheap-looking multiple on near-peak margins is only cheap if the margins hold.

Is money entering or leaving the Capital Goods - Transformers sector?

On Sector Alpha's deterministic capital-flow read, money is entering the Capital Goods - Transformers sector. Institutional (FII+DII) holdings moved −1.00 percentage points across constituents over the last four quarters, and constituents grew capex +153.7% year-on-year.

How fast is the Capital Goods - Transformers sector growing?

In the latest reported quarter (March 2026), Capital Goods - Transformers constituents together booked ₹7,331 Cr of revenue, +16.3% year-on-year, with aggregate profit −2.6% year-on-year. Figures aggregate Screener-scraped quarterly filings across the sector.

How are Capital Goods - Transformers operating margins trending?

Aggregate Capital Goods - Transformers operating margin was 12.8% in the latest reported quarter (March 2026), versus 14.9% a year earlier — margins are softening.

Which sectors is the Capital Goods - Transformers sector connected to?

The Capital Goods - Transformers sector sits in 2 cross-sector chains: as a potential casualty it connects to Cables - Power, Electrical Equipments/HVDC, Infra - Construction & Contracting, Engineering - Turnkey Services — A Rs9.15Tn India T&D + RDSS + renewable-grid buildout with 5-7y order visibility, cited verbatim across the entire CapGoodsPower complex;; as a beneficiary it connects to Data Centre, Cables - Power, Electrical Equipments/HVDC — Surge in AI-driven data center capacity and renewable integration requiring massive grid upgrades..

What is the bull case for the Capital Goods - Transformers sector?

Grid super-cycle keeps order books at ~2x revenue, but a raw-material wall (transformer oil +100%, CRGO/copper) is gutting margins — demand real, profitability now the swing factor. Aggregate profit turned from years of losses (-530 in 2017, -713 in 2018, -1,233 in 2020) to a durable, still-expanding profit (1,410 in 2021, 1,497, 2,329, 2,275, 2,536 in 2026).

What could change the view on the Capital Goods - Transformers sector?

The demand leg the thesis rests on slips while margins keep compressing — if transformer-oil and CRGO inflation are NOT passed through and aggregate OPM rolls below mid-teens while order intake decelerates (the TARIL guidance walk-back to ₹3,250 Cr is an early sign), then the +63.7% re-rated multiple has nothing left to compound and the peak-margin normalization (normalized PE 100th percentile) bites — confirming a peak-margin top, not a durable super-cycle. Conversely, backward-integration restoring ~200 bps of margin in FY27 with order intake re-accelerating would re-establish earnings-led durability and lift conviction. Also worth noting: a breakdown is NOT underway: 82% of constituents still trade above their 200-day averages.

What is the research view on the Capital Goods - Transformers sector?

Sector Alpha does not publish trading recommendations or price calls — this is a research read, not advice. What the data says: topping · mixed. All three streams agree the THESIS is up and earnings-backed, but they conflict on whether margins and price have peaked — so mixed. CURVE: a durable, still-expanding earnings super-cycle (profit 1,497→2,536, OPM rebuilt to mid-teens). Every number on this page traces to its source column; it is machine-written research, not investment advice.

Should I invest in the Capital Goods - Transformers sector?

Sector Alpha does not publish sector allocations or trading calls — for Capital Goods - Transformers or any sector. What this page provides is a data-first read: how many constituents are in confirmed uptrends, how the sector's valuation compares with its own history, where earnings sit in their cycle, and whether capital is entering or leaving. Use it to study the sector on the evidence, then do your own diligence.

What is the Capital Goods - Transformers sector's relative-strength position?

Capital Goods - Transformers relative strength reads 47.2 on Sector Alpha's rotation map, placing it in the leaders quadrant. Relative strength is rising and has held for 12 weeks. A positive, rising relative-strength trend means the sector has been outperforming the broad market week after week.

Generated from Screener data · 11 sources · sector_why_traces/1.0 + sector-story/1.0 · GOLD

Machine-compiled sector commentary derived from the constituent companies. Descriptive research only — Sector Alpha does not publish sector allocations, price targets, or buy/sell calls. Not investment advice.