Small-Cap transformer stock soars after Rs 41 crore Adani Power deal: Is it time to invest?
While the stock delivered multibagger returns, gaining over 120 per cent in the first eight months of 2024, it has since faced significant selling pressure and has plunged 33 per cent from its 52-week high.
Shares of Voltamp Transformers Ltd saw a notable uptick of 2 per cent, reaching an intraday high of Rs 10,037.95 on the BSE after the company secured a significant purchase order.
The company announced that it received a purchase order worth Rs 41 crore from Adani Power Ltd and its wholly-owned subsidiary, Mahan Energen Ltd, for the supply of distribution transformers. The scope of the project includes the design, manufacturing, testing, and supply of various ratings of distribution transformers, with the contract to be executed within 12 months.
Headquartered in Vadodara, Voltamp Transformers Ltd has been a trusted name in the transformer industry for over 61 years, with an impressive track record of 70,000 installations across India and overseas. The company caters to diverse industries, including power, steel, cement, oil & gas, chemical and petrochemical, data centres, and green energy.
The company has built strong relationships with major EPC firms such as Larsen & Toubro, Thyssenkrupp, Toyo, Petrofac, Engineers India, Tata Projects, Thermax, and multinational giants like Siemens, ABB, GE, and Hitachi, which have been sourcing transformers from the company for over three decades.
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While the stock delivered multibagger returns, gaining over 120 per cent in the first eight months of 2024, it has since faced significant selling pressure due to broader market weakness. The shares have plunged 33 per cent from their 52-week high of Rs 14,800, recorded in August 2024.
Can Voltamp Transformers Ltd emerge as a strong contrarian bet in the current market environment? Keep a close eye on this stock for the upcoming trading sessions!
Disclaimer: The article is for informational purposes only and not investment advice.