Buy Voltamp Transformers; target of Rs 13350: Emkay Global Financial

Emkay Global Financial is bullish on Voltamp Transformers has recommended buy rating on the stock with a target price of Rs 13350 in its research report dated January 31, 2025.

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February 03, 2025 / 21:09 IST

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26 Aug, 2025 12:21

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Emkay Global Financial's research report on Voltamp Transformers

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). EBITDA margin improved to 20.5% (+44bps YoY) on the back of better realizations and operational efficiencies. Order inflow during Q3/9MFY25 stood at Rs6.5bn/Rs16.6bn (+33%/+20% YoY), taking the backlog to Rs11bn (+19% YoY). However, PAT was impacted (marginally up by 2% YoY) due to lower other income, on account of MTM losses. The management indicated a healthy and sustaining enquiry pipeline across end-markets, especially renewable projects, aided by steady growth in domestic demand. The announced capacity addition plan of 6,000MVA is on track, with commencement of construction activities.

Outlook

We believe VAMP would be a key beneficiary of India’s renewable capacity addition, private capex revival, and GoI’s PLI initiatives in the manufacturing space. VAMP’s current strong order-book, coupled with the enquiry base, robust balance sheet, and improved cyclical demand tailwinds, grant us a more constructive outlook on the stock.

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