Voltamp Transformers zooms 77% in 2 months on strong results & MF buying

HDFC Mutual Fund increased stake in Voltamp Transformers to 5.25 per cent from 4.45 per cent held at the end of March quarter 2022

Shares of Voltamp Transformers continued their upward move and hit a new high of Rs 3,283, as they gained 5 per cent on the BSE in Friday’s intra-day trade. The shares quoted higher for fourth straight session, and have surged nearly 14 per cent during the period.

In the past two months, the market price of Voltamp Transformers has 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 the business of manufacturing of electrical transformers. The company has been 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.

Meanwhile, HDFC MF, through its various schemes, purchased an additional 50,000 or 0.35 per cent stake in Voltamp Transformers on June 14, 2022. Post acquisition, HDFC MF's holding in the company increased to 5.25 per cent from 4.91 per cent. At the end of March 2022 quarter, HDFC MF held 450,390 equity shares or 4.45 per cent stake in Voltamp Transformers, data showed.