Withdrawal of TRF’s merger with Tata Steel has triggered quiet a rally in TRF. I tend to agree with the upmove
My simple thesis on this name:
- Withdrawal of merger is a clear indication that the worst is behind - both financially and operationally
- A CHP (Coal Handling Plat) manufacturer, it is likely to be a beneficiary of growing thermal power need in the country. TRF is a vendor to BHEL who has been winning significant quantum of thermal power orders. Those should start to reflect in its vendor books as well.
- At 14x trailing PER, it is one of the cheapest stock among peer set.
- Finally, despite recent run-up, market cap is just INR 530cr. For a Tata Company, that should indicate signicant upside potential.
Happy to hear others’ views.