Voltamp Transformers zooms 77% in 2 months on strong results & MF buying

Shares of Voltamp Transformers continued its upward move and hit a new high of Rs 3,283, as the stock gained 5 per cent on the BSE in Friday’s intra-day trade. The stock quoted higher for four straight days and surged nearly 14 per cent during the period.

In the past two months, the market price of Voltamp Transformers zoomed 77 per cent after the company reported strong March quarter (Q4FY22) results.

In Q4FY22, Voltamp’s sales grew by 36.3 per cent year on year (YoY) to Rs 387 crore driven by execution of healthy order inflows. Profit after tax (PAT), too, jumped 67 per cent YoY to Rs 51.9 crore from Rs 31.1 crore in Q4FY21.

Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 102 per cent YoY at Rs 66.7 crore and EBITDA margins improved 561 bps YoY at 17.2 per cent. The margins were higher mainly on account of fall in employee costs and healthy gross margin. Moreover, the board recommended a dividend of Rs 35 per equity share.

Voltamp Transformers is engaged in business of manufacturing of electrical transformers. The company is debt free since many years and a good amount of their surplus investments are diversified portfolios.

Analysts believe that the company is one of the best plays for future upturn given their industrial focused business model.

Besides that, HDFC MF through its various schemes had purchased an additional 50,000 or 0.35 per cent stake in Voltamp Transformers on June 14, 2022. Post acquisition, HDFC MF holding in the company increased to 5.25 per cent from 4.91 per cent. At the end of March 2022 quarter, HDFC MF had held 450,390 equity shares or 4.45 per cent holding in Voltamp Transformers, data showed.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor