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.
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