TRF - emerging from parent's shadow!

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:

  1. Withdrawal of merger is a clear indication that the worst is behind - both financially and operationally
  2. 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.
  3. At 14x trailing PER, it is one of the cheapest stock among peer set.
  4. 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.