Buy Voltamp Transformers; target of Rs 10,000: Emkay Global Financial

Emkay Global Financial' research report on Voltamp Transformers

VAMP’s strong market position (15% share in the industrial segment) stems from its design and manufacturing depth, along with a broad product portfolio that serves a diversified customer base – with private clients contributing ~85% of revenue. With its established track record, we believe the company is strategically placed to benefit from a multi-year growth cycle supported by private capex revival and the GoI’s PLI-driven manufacturing push. The current opportunities across solar energy, railway capex, EV charging infrastructure, green hydrogen, and data centers further widen VAMP’s addressable market. While we expect a high double-digit revenue growth led by capacity expansion and a lean balance sheet, we trim our margin estimates due to rising industry supply from planned capacity additions by several players.

Outlook

We maintain BUY on Voltamp Transformers (VAMP) while cutting our TP by ~12% to Rs10,000 (from Rs11,350 earlier), valuing the stock at 25x FY28E EPS.