Voltamp Transformers Ltd. share price target

We maintain BUY on Voltamp Transformers (VAMP) while cutting our TP by ~15% to Rs11,350 (upside: 39%) from Rs13,350 earlier. VAMP’s Q4FY25 results were ahead of estimates due to higher than estimated volume and realization.

We maintain BUY on Voltamp Transformers (VAMP) with unchanged TP of Rs13,350. VAMP’s Q3FY25 revenue/EBITDA came in at Rs4.8bn/Rs990mn (+18%/+21% YoY).

Voltamp Transformers (Voltamp) reported strong numbers in Q2FY24 with EBITDA growth of 48% YoY to INR 688mn led by 20% YoY revenue growth and a healthy EBITDA margin of 18% (+343bps YoY). PAT grew 49% YoY to INR 684mn. We believe strong growth in service business (+122% YoY at INR 228mn), EBITDA margin, net-cash status is likely to sustain in the future.

Voltamp Transformers (Voltamp) reported strong numbers for Q4FY23 with EBITDA growth of 39% YoY to Rs928mn. This was led by 14% YoY revenue growth and the company’s highest-ever EBITDA margin of 21.1% (+390bps YoY). PAT grew 47.6% YoY to Rs766mn.

We initiate coverage on Voltamp Transformers (Voltamp) with a BUY rating and an SOTP-based target price of Rs3,610 (35% upside). Company is a key player in the transformer manufacturing space with a domestic market share of 15% (as per management), catering to diversified sectors (85% of revenue comes from private customers).

Enquiry pipeline remains healthy, though order finalization is witnessing delay due to steep rise in commodity price. Voltamp Transformers reported weak quarterly performance below our estimates, owing to lower dispatches and steep rise in commodity price. Steep rise in raw material prices like, copper, silicon steel, transformer oil etc. along with execution of fixed price legacy orders, impacted EBITDA margins (4% in Q1FY22 Vs 10-11% range). With few legacy orders still in order book,...

Factory operations impacted in April-May'21 owing to Covid second wave, however operations are ramping up from June'21. Voltamp Transformers reported strong quarterly performance above our and street estimates owing to ramp up in dispatches, execution and higher other income. Revenue grew 26% YoY to Rs2.8bn led by strong execution. Steep rise in RM cost such as copper, silicon steel, conventional steel, etc. from Oct'20 impacted EBITDA margins (down 510bps YoY) as management...

visibility for two-three quarters. Enquiry levels continue to remain healthy sectors like infra, water, power, mining, Oil & Gas, ports, pharma, data centers etc., to be major growth drivers. We remain positive on the company due to strong business model, debt free balance sheet and consistent free cash flow generation (current cash of ~Rs5.5bn). Based on recent development, we have revised our ear nings downwards for FY21E/22E by 5%4% while kept FY23E largely unchanged. The stock is currently trading at valuations of 12.3x/10.3x FY22E/23E earnings. We...

We recently hosted Mr. KS Patel, CMD of Voltamp Transformers Ltd (VAMP) Change in Estimates | Target | Reco of challenging environment, company reported healthy performance during...

Despite a challenging environment, Voltamp Transformers has reported healthy performance during Q2FY21. Profit for the quarter grew by 54.5% YoY/15% QoQ to Rs 298 mn, driven by cost control measures and higher other income. Sales of the company decreased by 18% YoY to Rs 1,602 mn, largely due to delay in acceptance of delivery and disrupted supply chain amidst covid pandemic. However, operations have started resuming gradually with enquiry and order finalization taking place on project progress basis. On a sequential basis sales bounced back quickly...

environment; cost rationalization measures and higher other income induce rise in profitability. During 2Q, sales were muted due to delay in acceptance of delivery given non-operational customer's site and disruption in supply chain. However, operation have started resuming gradually with limited...