At 52-week high! Hind Rectifiers shares hit 20% upper circuit after Q1 results 2025, fundraise move

Mumbai, July 29, 2025 — Shares of Hind Rectifiers Ltd surged a whopping 20% to ₹652.80, hitting the upper circuit and marking a new 52-week high on the NSE and BSE, following the release of the company’s strong Q1 FY25 financial results and a strategic fundraising initiative via preferential allotment.

The stock opened with a gap-up and saw intense buying interest throughout the day. Market participants welcomed the company’s robust performance in the April–June quarter and viewed the proposed equity infusion as a positive signal for future expansion and growth.

Robust Q1 Performance: Profit More Than Doubles YoY

For the quarter ended June 30, 2025, Hind Rectifiers reported a net profit of ₹12.3 crore, more than double the ₹5.8 crore posted in the same quarter last year. Revenue from operations grew by 68% year-on-year to ₹157.4 crore, compared to ₹93.5 crore in Q1 FY24.

The surge in profit was driven by a combination of higher order executions, increased operational efficiencies, and a sharp improvement in margins, aided by optimized input costs.

“The Q1 numbers indicate strong demand for our rectifiers, transformers, and power electronic systems, particularly from the Indian Railways and industrial sectors,” said Arvind K. Agarwal, MD & CEO of Hind Rectifiers. “We’re also witnessing significant traction in export orders, which is supporting our top-line growth.”

Margin Expansion and Order Book Visibility

The company reported an EBITDA of ₹21.6 crore, up 72% YoY, with EBITDA margins expanding to 13.7%, compared to 12.2% in Q1 FY24. The order book stands at ₹490 crore, providing strong revenue visibility for the upcoming quarters.

Analysts tracking the industrial manufacturing space have noted Hind Rectifiers’ ongoing operational turnaround and growing market relevance, especially within the railway electrification and infrastructure modernization themes.

“Hind Rectifiers is benefitting from both government-led capex cycles and private sector demand. The company’s improving fundamentals, coupled with healthy margins and a growing order book, make it an attractive mid-cap pick,” said Ravi Deshmukh, Analyst at Axis Securities.

Fundraising Initiative: Preferential Allotment to Catalyse Growth

In a parallel development, the company’s Board has approved a preferential allotment of equity shares worth ₹50 crore to institutional and strategic investors, subject to shareholder and regulatory approvals.

The funds raised will be deployed for capacity expansion, R&D initiatives, and working capital requirements to support its next phase of growth.

The preferential issue is expected to be priced at a premium to the current market price, signaling strong institutional interest and management confidence.

“This fundraise will strengthen our balance sheet and enable us to accelerate our growth roadmap,” said CFO Ritika Malhotra. “We’re preparing for the next leap in technological innovation and geographic expansion.”

Market Reaction and Technical Indicators

The stock has delivered a remarkable 96% return in the last six months and is now trading at its highest level in over a year. With today's surge, Hind Rectifiers' market capitalization has jumped to ₹1,050 crore, placing it firmly on the radar of institutional investors and market watchers.

From a technical standpoint, the stock is now trading well above its 20-day, 50-day, and 200-day moving averages, indicating strong bullish momentum. However, analysts caution that some near-term consolidation may be possible after the sharp run-up.

“Momentum traders are likely to remain interested as long as the stock holds above ₹610 levels. A breakout above ₹660 could take it towards ₹700–720 in the short term,” said Rajesh Palviya, Head of Technicals at Axis Securities.

Sectoral Tailwinds: Railways, Power, and Manufacturing

Hind Rectifiers operates at the intersection of railway modernization, electrification, and power management—all of which are seeing a substantial policy push from the government.

Under the Union Budget 2025–26, the Indian Railways has seen a capital outlay of ₹2.7 lakh crore, with a strong focus on electrification and modernization. Hind Rectifiers, as a key supplier of rectifiers, inverters, and control systems, is expected to be a significant beneficiary of this theme.

Investor Outlook: Medium-Term Bullishness

With a strong balance sheet, diversified product portfolio, and growing addressable market, Hind Rectifiers is positioned as a niche play in India's infrastructure and electrification theme.

Brokerages have started revising their estimates. Motilal Oswal recently initiated coverage with a ‘Buy’ rating and a target price of ₹735, citing strong earnings visibility and margin stability.

“We believe the stock offers a compelling risk-reward ratio, especially post-fundraising. Hind Rectifiers could potentially double its net profit over the next 6–8 quarters,” Motilal Oswal said in a note.

Hind Rectifiers’ spectacular Q1 FY25 performance, coupled with a strategic fundraising initiative, has positioned it as one of the top-performing industrial stocks in recent times. As the company gears up for capacity expansion and innovation-led growth, investors and market watchers will be closely tracking its execution capabilities and order inflow momentum.

While valuations have expanded sharply, the medium to long-term growth outlook remains firmly bullish, supported by structural sectoral drivers and efficient capital management.