Buy Voltamp Transformers; target of Rs 11,437: Prabhudas Lilladher

Prabhudas Lilladher's research report on Voltamp Transformers

Voltamp Transformers (VAMP) reported decent quarterly performance with 18.4 YoY revenue growth and Adj. EBITDA margin expansion of 44bps YoY to 20.5%. The domestic demand landscape remains conducive to growth, driven by strong retail orders, while the opportunity pipeline remains robust, with notable traction across oil & gas, cement, solar, automotive ancillaries, data centers, commercial real estate and green energy. However, increasing additional supplies from competitors may exert some pricing pressure, leading to expected margin normalization. The company continues to prioritize selective order booking while refraining from government contracts to maintain better cash flows. Additionally, the supplies of CRGO is on track for the company.

Outlook

The stock is currently trading at PE of 25.0x/21.9x on earnings of FY26/27E. We maintain ‘BUY’ rating and roll forward to Sep’26E with a revised TP of Rs11,437 (Rs12,531 earlier) valuing the stock at PE of 32x in Sep’26E earnings (35x Sep’26E earlier).

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