Buy Voltamp Transformers; target of Rs 1538: Anand Rathi

Anand Rathi is bullish on Voltamp Transformers has recommended buy rating on the stock with a target price of Rs 1538 in its research report dated November 12, 2018.

Broker Research

November 15, 2018 / 18:04 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Anand Rathi's research report on Voltamp Transformers

Due to deteriorating profitability, Voltamp has reduced exposure to renewable capex-related orders. The pick-up in infra orders for OEMs would lead to strong inflows for the company in the next six to nine months. We expect earnings to clock a 31% CAGR over FY18-20. We retain our Buy rating and revise our target to `1,538 (14x FY20e EV/ EBITDA). Strong order book Voltamp?s `4.3bn order-book on 30th Oct?18 is for transformers of ~5,800MVA, more than 88% from private operators, the rest from SEBs and utilities. In H1 FY19, order inflows grew 16% y/y to `3.8bn. Realisations have been flattish at `0.75m/MVA.

Outlook

We believe that the order book would improve with capex revival especially in sectors such as the metro rail and commercial construction, and with greater distribution capex, more sales would ensure better profitability due to rising utilisation.

For all recommendations report, click here