Voltamp Transformers Ltd. share price target

Voltamp Transformers reported mix performance during Q1FY21. It has reported 61% YoY fall in revenue at Rs 723 mn, primarily due to weak order execution and Covid impact. Lower operating performance of the Company was offset by sharp jump in other income, resulting into profit growth of 14% YoY/67% QoQ to Rs 193 mn. Other income for the quarter increased by 235% YoY to Rs 224 mn, on account of increase in investment value. EBITDA for the quarter de-grew by 86% YoY to Rs 29 mn while EBITDA margin...

delay in decision making. We expect Voltamp to report muted volume CAGR over next two years (FY20-22E) owing to weak economic environment. Management indicated that once the situation starts normalizing they expect sectors like Infra, Water, Mining, Oil & Gas, Airports, Defence, Pharma, Chemicals, Data Centers and Renewables to improve going ahead. We remain positive on the company due to strong business model, debt free balance sheet and consistent free cash flow generation (current cash + Investments of ~Rs5.4bn). We have modelled revenue/PAT to grow at CAGR...

Volatility in financial markets (debt and equity) during FY20 led to net reduction in other income worth ~Rs217mn, primarily on account of MTM loss. Voltamp Transformers reported healthy set of numbers however lower Other income (MTM loss) dragged profitability. Based on our estimates, order inflow stood at ~Rs2.5bn (up ~33.5% YoY) as on 4QFY20, translating order backlog to Rs4.7bn (executable over next two-three quarters). We expect Voltamp to report muted volume CAGR over next two years (FY20-22E) owing to weak...

led strong execution and pickup in deliveries of transformers. PBT for the quarter grew 28% YoY due to (1) 90bps YoY expansion in EBITDA margins at 12%, and (2) 31% YoY rise in other income. Order inflow for 3QFY20 stood at ~Rs2.1bn (down ~14% YoY) translating into order backlog to Rs4.5bn (executable over next two-three quarters). We expect Voltamp to report ~7% volume CAGR over next two years (FY19-21E). Voltamp continues to receive recurring orders from several industries mainly Infrastructure, Steel, Cement, Oil & Gas, and Chemicals etc. Renewables (especially Solar) offers large...

We have modelled revenue/PAT to grow at CAGR of 12.3/17% over next two years. The stock is currently trading at attractive valuations of 10/9x FY20/21E. Voltamp Transformers (reported good set of number for 2QFY20 given challenging environment. Revenue for the quarter was up moderate 3% YoY led by 9% YoY dip in volumes and ~13% YoY increase in realization due to change in mix. PBT for the quarter grew 22.8% YoY due to (1) 70bps YoY expansion in EBITDA margin at 10.8%, and (2) 62% YoY rise in other income. The 2QFY20 order inflow stood at Rs2.7 bn (+~7% YoY), taking current order...

Voltamp Transformers reported good set of numbers in Q2FY20, mostly in line with our estimate except a miss on revenue front. Revenue for the quarter stood at Rs 1,949 mn, below our estimate of Rs 2,130 mn, registering +3.1% YoY/4.0% QoQ growth. Despite higher employee costs and other expenses, Voltamp was able to expand its margin by 74bps YoY to 10.8%, which is commendable. We are positive on Voltamp from longer term perspective owing to its debt free status, free cash flow generation...

Voltamp reported strong set of numbers for 4QFY19 with revenue/PAT up Change in Estimates | Target | Reco over next 3 quarters). We expect Voltamp to report ~8% volume CAGR over...

The demand scenario for capital goods makers in general remains weak. In this scenario, the company's focus remains on taking good quality orders that are fairly priced and have reasonably good credit profile. This is manifested in...

The demand scenario for capital goods makers in general remains weak. In this scenario, the company's focus remains on taking good quality orders that are fairly priced and have reasonably good credit profile. This is manifested in the company's balance sheet which has shown further improvement in working...

Government initiative on infrastructure projects and ambitious target of solar and 1.00 wind energy projects is likely to improve. Tender / enquiry in pipeline for potential business. Initiatives such as UDAY, DDUGJY, aggressive renewable energy target, the 0.90 new hydro policy and the massive transmission connectivity plans is expected to gradually ease competitive pressure. These reforms are ambitious. If executed...