Despite 13% drop in 2026, Antique gives a 'buy' rating to this T&D stock | check target, stop loss, rationale

Domestic brokerage firm Antique Stock Broking, in its latest report, has initiated coverage on Transrail Lighting with a bullish outlook even as the stock remains stuck in the bear zone.The shares have lost 13.5% of their value in 2026 and fallen to a record low last month, but Antique Stock Broking sees a reversal in the rally as it sees an opportunity in the structural and multi-year power T&D investment cycle, supported by rising renewable capacity, increasing power demand, grid modernization, and the growing need for high-voltage transmission infrastructure.Antique Stock Broking believes that the company is well-positioned to capitalize on the rising demand and underscores that it has entered this growth phase with strong execution capabilities, an established presence across domestic and international markets, and a robust order book of ₹160 billion, including L1, providing more than two years of revenue visibility.The brokerage highlighted the company's steady order inflows, standing at ₹85 billion in FY26, which is also well diversified across geographies, with international orders accounting for 39%, thereby reducing dependence on the domestic market.In addition, the company is also witnessing a healthy bidding pipeline across India and overseas markets, providing a strong opportunity to replenish the order book and sustain growth beyond the existing execution visibility.Strong order book, capex tailwinds support Transrail Lighting’s growth outlook Aided by favorable power T&D capex tailwinds, a healthy tender pipeline and order book position, doubling of manufacturing capacity, and a focus on disciplined execution, Antique Stock Broking believes that the company is on course for a healthy growth trajectory. Therefore, Antique Stock Broking has initiated coverage on the stock with a 'buy' rating and set a target price of ₹851, which indicates a massive 76.5% surge from the stock's Tuesday closing price of ₹482. Over FY22-26, the company has gradually emerged as a strong financial franchise by delivering robust performance, with a topline CAGR of 31%, while a 310 basis point expansion in EBITDA margin resulted in a robust EBITDA/PAT CAGR of 41%/58%, respectively.

With a meaningful reduction in working capital days to 80 (vs. 104 days in FY22), cumulative operating cash flow generated over FY22-FY26 stood at ₹11.6 billion (operating cash doubled YoY in FY26). "With the expanded manufacturing footprint, improved execution productivity, and higher internal manufacturing contribution, Antique Stock Broking expects operating leverage to support healthy earnings growth amid a competitive EPC environment," the brokerage said. Stock extends losing streak After reaching a record high of ₹855.80 apiece, the stock came under heavy selling pressure, which later turned into a prolonged correction, dragging the stock to a record low of ₹400.65 apiece in September.

It closed 2025 with a modest gain of 3.12%, and if the current losses persist through the end of the year, it could end the year with double-digit losses. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.