Transformers Company Bags New Order Worth Rs 263.33 Crore From Gujarat Energy Transmission Corporation Limited

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 4,960 per share and a whopping 570 per cent in 3 years.

Voltamp Transformers Limited has received a Letter of Intent from Gujarat Energy Transmission Corporation Limited for a contract worth Rs 263.33 Crore (exclusive of GST). This contract involves the design, manufacture, testing, and supply of various ratings of Power Transformers within a 12-month timeframe. The order has been awarded by a domestic entity.

Voltamp Transformers Ltd, headquartered in Baroda, India, is a prominent manufacturer of a diverse range of oil-filled power and distribution transformers. The company's product portfolio caters to a wide spectrum of applications, encompassing transformers with capacities ranging from 160 MVA to 220 KV. To meet the growing demand, Voltamp operates state-of-the-art manufacturing facilities in Makarpura and Savli, Vadodara, boasting a combined installed capacity of 14,000 MVA. The company's products have earned global recognition, with exports reaching various countries including India, Nepal, Bhutan, Sri Lanka, Middle East Asia, South East Asia, and Africa.

The company has a market cap of over Rs 10,000 crore and has delivered good profit growth of 29.2 per cent CAGR over last 5 years with healthy dividend pay-out of 28.9 per cent. The stock is trading at 7.46 times its book value of Rs 1,401. The shares of the company have a PE of 31x, an ROE of 25 per cent and an ROCE of 32 per cent. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 4,960 per share and a whopping 570 per cent in 3 years. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.