Company: Transformers and Electricals Kerala Limited
Brand: TELK
CIN: U31102KL1963SGC002043
ISIN: INE123K01011
Face Value: ₹10
Incorporated: 9 December 1963
Registered Office: Angamaly South, Ernakulam, Kerala
Sector: Electrical Equipment / Power Transmission
Status: Unlisted Public Company
Promoters: Government of Kerala & NTPC Limited
Executive Summary
Transformers and Electricals Kerala Limited (TELK) is a long-established manufacturer of high-voltage electrical equipment, particularly power transformers and associated components.
The company was established in 1963 through technical and financial collaboration between the Government of Kerala and Hitachi of Japan. Today, the Government of Kerala and NTPC are the principal shareholders, with the Government of Kerala holding 54.56% and NTPC holding 44.60%.
TELK operates in an industry benefiting from India’s expanding transmission infrastructure, renewable-energy integration, industrial electrification and increasing demand for grid equipment.
However, TELK needs to be evaluated carefully. While the business has a strong industrial pedigree and has returned to operating profitability, its financial history includes substantial losses and the company remains unlisted with limited liquidity.
A particularly important development is that NTPC stated in its FY2024-25 Annual Report that, with Government of India approval, it had initiated the process to exit TELK as a joint venture. The eventual ownership structure and implications of this process are therefore important factors for unlisted investors.
1. Company Overview
TELK was incorporated on 9 December 1963 by the Government of Kerala following a technical and financial collaboration agreement with Hitachi Limited, Japan.
The original objective was to establish an Indian manufacturing facility capable of designing and producing Extra High Voltage electrical equipment.
According to TELK’s official organisation information, the company manufactures electrical equipment including transformers and related high-voltage products and is presently an unlisted Government company.
Official company website: TELK Official Website
2. Shareholding Structure
As disclosed by TELK:
| Shareholder | Holding |
|---|---|
| Government of Kerala | 54.56% |
| NTPC Limited | 44.60% |
| Others | 0.84% |
| Total | 100% |
The latest TELK annual-report shareholding information also shows the Government of Kerala with 54.56% and NTPC with 44.60%.
This creates a distinctive ownership structure because TELK is effectively controlled by government-backed shareholders rather than conventional private promoters.
3. Business Model
TELK’s core business is the manufacturing and servicing of high-voltage electrical equipment.
Its products and activities include:
- Power transformers
- Extra-high-voltage transformers
- Current transformers
- Potential/voltage transformers
- Transformer bushings
- Tap-changing equipment
- Transformer-related components
- Engineering and machine-work services
Third-party company databases identify transformers as the dominant product category, accounting for approximately 97.71% of turnover in the referenced business classification.
TELK’s manufacturing heritage is particularly relevant in the high-voltage segment, where engineering know-how, testing capability, reliability and customer approvals can create entry barriers.
4. Product & Industry Positioning
TELK has historically operated in a technically demanding portion of the electrical-equipment industry.
Its products are used in applications associated with:
Power Generation → Transmission → Distribution → Industrial Infrastructure
The company has supplied equipment used by utilities and other industrial customers. Government tender records also continue to show demand for TELK-manufactured transformer equipment and services, including transportation of large transformer units and supply of transformer-related materials.
5. Industry Opportunity
The Indian power-transmission and electrical-equipment industry has structural demand drivers.
Key demand drivers
1. Renewable-energy integration
Increasing solar and wind capacity requires additional transmission infrastructure, substations and grid balancing infrastructure.
2. Transmission expansion
India continues to invest in high-voltage transmission corridors and grid strengthening.
3. Rising electricity consumption
Higher industrialisation, urbanisation, data centres, railways, EVs and manufacturing activity increase electricity demand.
4. Replacement demand
Transformers have long operating lives, but ageing equipment requires refurbishment and replacement.
5. Grid modernisation
The transition toward a more interconnected and resilient grid increases demand for sophisticated high-voltage equipment.
For TELK, the key question is not whether the industry has structural demand, but whether the company can convert that industry opportunity into consistent revenue and profitability.
6. Financial Performance
FY2024-25
NTPC’s FY2024-25 Annual Report provides financial information for TELK as one of its joint ventures.
For FY2024-25, NTPC reported:
| Particular | FY2024-25 |
|---|---|
| Total Income | ₹205.20 Cr |
| Profit for the Year | ₹6.39 Cr |
| NTPC ownership | 44.60% |
| NTPC’s investment in equity | ₹5.47 Cr |
The FY2023-24 comparison in the same disclosure shows TELK had substantially weaker profitability, making the FY2024-25 return to profit operationally relevant.
Kerala’s 2026 Development Report also states that TELK executed more than ₹200 crore of orders for national agencies and recorded operating profit exceeding ₹6 crore in FY2024-25.
Historical perspective
TELK’s historical financial performance has been volatile.
The company’s own older annual-report disclosures show that it suffered significant losses during FY2021-22 but subsequently reported an operating profit of ₹13.15 crore in FY2023-24.
This indicates that the turnaround in operating performance is not completely new, but consistency remains the key issue.
7. Financial Quality – Important Observation
TELK requires additional due diligence because different public databases currently display substantially different financial information.
For example, one unlisted-market database currently displays:
- EPS: -₹5.30
- Book value: ₹16.52
- Market reference: ₹125
- Market capitalisation: ₹537.12 crore
However, these figures are not consistent with the FY2024-25 financial information reported by NTPC, which shows TELK generating ₹205.20 crore of total income and ₹6.39 crore of profit.
Therefore, these market-database ratios should not be treated as definitive current valuation metrics without obtaining the latest audited TELK standalone financial statements.
This is particularly important for an unlisted company where secondary-market websites may carry stale financial data.
8. Unlisted Share Price
A secondary unlisted-share platform currently displays:
Reference price: ₹125/share
with approximately 4.30 crore outstanding shares and an indicated market capitalisation of approximately ₹537 crore.
However, this should be treated only as an indicative OTC reference, not a live exchange-traded price.
The same source shows ₹125 as both its displayed lifetime high and lifetime low, dated 23 June 2023, which strongly suggests that the quoted price is not representative of an actively traded market.
Therefore: investors should obtain an actual buy/sell quote before relying on ₹125 for a transaction.
9. Indicative Valuation
Using ₹125 only as an illustrative reference:
Shares outstanding: ~4.30 crore
Illustrative equity value: ~₹537 crore
Using FY2024-25 PAT of ₹6.39 crore:
Illustrative P/E ≈ 84x
This is a high earnings multiple for a company whose profitability has historically been volatile.
However, this calculation should be viewed cautiously because the ₹125 reference price and FY2024-25 PAT may not represent the same valuation date, while the latest available secondary databases contain conflicting financial information.
Illustrative earnings sensitivity
If sustainable annual PAT were:
| PAT Scenario | Approx. P/E at ₹537 Cr valuation |
|---|---|
| ₹5 Cr | ~107x |
| ₹10 Cr | ~54x |
| ₹15 Cr | ~36x |
| ₹20 Cr | ~27x |
| ₹25 Cr | ~21x |
| ₹30 Cr | ~18x |
This illustrates the central valuation question for TELK:
The investment case becomes materially different if the company can sustainably increase earnings rather than merely return to occasional operating profitability.
These are mathematical sensitivity scenarios, not earnings forecasts.
10. Competitive Advantages
Long operating history
TELK has operated since 1963 and therefore possesses decades of manufacturing and engineering experience.
Technical heritage
The company was originally established with Hitachi’s technical and financial collaboration, giving TELK an established engineering heritage.
Government ownership
The Government of Kerala remains the majority shareholder, while NTPC owns 44.60%.
High-voltage expertise
TELK operates in a technically specialised area where product reliability, engineering capability and customer acceptance are important.
Existing customer relationships
The company has historically supplied equipment to utilities and other institutional customers, while recent government tender records continue to show TELK equipment being used in power infrastructure.
11. Growth Drivers
Power transmission investment
India’s expanding transmission network can create opportunities for transformer manufacturers.
Renewable-energy capacity addition
Renewable generation requires additional transmission and grid infrastructure.
Industrial capex
Expansion in manufacturing, infrastructure and heavy industry can increase transformer demand.
Large transformer requirements
Recent government tender activity includes transportation of 200 MVA-class TELK transformer equipment, demonstrating the company’s continuing participation in large-transformer applications.
Turnaround potential
If TELK can sustain operating profitability and improve asset utilisation, earnings could recover significantly from historically weak levels.
12. Major Risks
1. Historical losses
TELK has experienced periods of substantial losses. Historical disclosures show a loss of ₹36.75 crore in FY2021-22 before subsequent improvement.
2. Earnings consistency
FY2024-25 profitability of ₹6.39 crore is positive, but one profitable year is insufficient to establish a durable earnings trend.
3. Government ownership
Government ownership can provide strategic support but can also result in slower decision-making, procurement constraints and policy-driven decisions.
4. NTPC exit
This is one of the most important current developments.
NTPC disclosed that it had initiated the process to exit TELK from its joint-venture portfolio with Government of India approval.
The eventual transaction structure, buyer, valuation and impact on governance should be closely monitored.
5. Unlisted liquidity
There is no regular NSE/BSE market for TELK shares. The ISIN is identified as unlisted, and TELK’s own organisation information states that its equity shares are not listed on a stock exchange.
An investor may therefore face:
- Limited buyers
- Wide bid/ask spreads
- Long exit periods
- Difficulty establishing fair market value
6. Data transparency
Public financial databases contain stale and conflicting information. Investors should therefore obtain the latest audited financial statements before making a transaction.
7. Transformer industry competition
TELK competes in a market containing much larger and better-capitalised players. Scale, technology, pricing, execution and order-book quality are important.
13. IPO / Listing Status
TELK is currently an unlisted company.
Available market data indicates no DRHP filed.
There is also no verified announcement establishing a confirmed TELK IPO timeline.
Investors should therefore not buy TELK purely on an assumed future IPO/listing thesis.
The more immediate corporate event to monitor is the proposed/initiated NTPC exit from the joint venture.
14. Investment Due-Diligence Checklist
Before buying TELK shares in the secondary market, investors should specifically obtain:
- Latest audited FY2025-26 financial statements
- Latest balance sheet and net worth
- Current order book
- Trade receivables ageing
- Current borrowings
- Government of Kerala funding/loan details
- Status of NTPC’s exit process
- Any proposed change in shareholding
- Latest shareholder list
- Any proposed restructuring or disinvestment
- Latest statutory auditor observations
- Actual buy and sell quotes from the intermediary
This is particularly important because the latest readily accessible market database contains financial figures that appear substantially older than the FY2024-25 financial information reported by NTPC.
15. Overall Assessment
TELK represents a specialised, government-backed power-equipment business with a long operating history and exposure to India’s expanding transmission and electricity infrastructure.
The positive side of the story includes:
- 60+ years of operating history
- High-voltage transformer expertise
- Government of Kerala majority ownership
- NTPC association
- Participation in large power-equipment projects
- Return to operating profitability
- Structural demand from India’s power infrastructure expansion
At the same time, investors need to consider:
- Historical losses
- Low and inconsistent profitability
- Limited liquidity
- Lack of transparent current market pricing
- Conflicting financial information across databases
- No confirmed IPO
- Potential change in ownership following NTPC’s proposed exit
Key Investment Question
The most important question for TELK is not simply “Does India need more transformers?”
India clearly has substantial power-infrastructure requirements.
The more important question is:
Can TELK convert this industry opportunity into sustained revenue growth, higher margins and consistent free cash generation while maintaining financial discipline?
That is what should determine the company’s long-term valuation.
16. Important Links
Company Website: TELK Official Website
TELK Organisation & Company Information: Official TELK Organisation Information
NTPC Annual Report 2024-25: NTPC Annual Report 2024-25
Indicative Unlisted Market Reference: TELK Unlisted Share Reference
Disclaimer
This report is for research and informational purposes only and should not be considered investment advice, a recommendation to buy or sell securities, or an assurance of future returns.
TELK is an unlisted company and its shares may have limited liquidity and uncertain price discovery. Secondary-market prices may differ materially between buyers and sellers.
Financial figures and valuation calculations should be independently verified against the latest audited financial statements and transaction documents before making any investment decision.
For more such unlisted stocks visit https://unlistedcart.com/unlisted-shares/
